SUBJECT: An Ordinance creating the SCD BLK 250 Tax Abatement Reinvestment Zone.
RECOMMENDATION: City Council approve an Ordinance creating the SCD BLK 250 Tax Abatement Reinvestment Zone.
SPECIFIC EXPLANATION:
Pursuant to Section 312.204 of the Tax Code, a municipality may enter into a tax abatement agreement in writing with the owner of real property that is located within a reinvestment zone. Section 312.202 of the same code defines the criteria for designating a tax abatement reinvestment zone, one of which is that the area be reasonable likely to attract major investment in the zone that would be a benefit to the land.
In accordance with Section 312.201 of the Tax Code and Article IV, Section 44-126 of the Code of Ordinances of the City of Houston, a public hearing must be held before city council on the designation of a reinvestment zone for SCD BLK 250. The hearing was held on December 1, 2021 at 9:00 A.M., prior to council consideration to establish the reinvestment zone. The public hearing was published in the Houston Chronicle on November 22, 2021.
The Administration requests that City Council designate an approximately .95-acre site located at 1550 Lamar Street, as the SCD BLK 250, Reinvestment Zone for tax abatement purposes (“Zone”), also described as HCAD No. 0012380000003. This action will enable city council to consider approval of a LEED tax abatement agreement for SCD BLK 250 Houston LLC. to support the LEED building that will comprise 370,000 sf of mixed-use space, including an office tower with retail space.
The company will invest approximately $117 million for the project which is estimated to create $93.6M new abatable value subject to the proposed LEED ad valorem tax abatement.
The project and the Zone met the criteria established by the City of Houston guidelines for tax abatement adopted on December 16, 2020.