SUBJECT: A motion to set a public hearing date for December 14, 2022, regarding the designation of the Prologis-Wayfair Reinvestment Zone for tax abatement purposes.
RECOMMENDATION: A motion to set a public hearing date for December 14, 2022, regarding the designation of the Prologis-Wayfair Reinvestment Zone for tax abatement purposes.
SPECIFIC EXPLANATION:
State law requires cities to adopt tax abatement guidelines and criteria before entering into tax abatement agreements, and each approved abatement agreement must meet those guidelines. State law also provides that cities’ tax abatement guidelines and criteria must be renewed every two years. City Council last renewed the tax abatement guidelines and criteria on May 19, 2022.
Tax abatement agreements may only be entered into for properties designated as a reinvestment zone pursuant to Sec. 312.201 of the Texas Tax Code. That section requires that the City hold a public hearing before it can adopt an ordinance designating an area as a reinvestment zone.
Prologis, Inc. (“the Landowner”) and Wayfair LLC (“the Company”) is proposing the development of regional distribution center. The Company submitted a tax abatement application to the City on May 18, 2022, and a revised application on 31, 2022, with all supporting documentation. The proposed development consists of a 1.2 million SF distribution center to be located at 15550 Milner Road, Houston, Texas. The Landowner plans to invest $70 million and the Company plans to invest $63.2 million to develop the Project.
The City has reviewed the Company’s tax abatement application, and the proposed tax abatement agreement was presented to the Economic Development Committee on July 20, 2022. The proposed date of the public hearing is December 14, 2022.
The hearing notice will be published in the Houston Chronicle no later than 7 days prior to the public hearing date, as statutorily required.
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Andrew F. Icken, Chief Development Officer