A motion to set a public hearing date for November 6, 2024, regarding the designation for the TPMS DA LLC Reinvestment Zone for tax abatement purposes and its related tax abatement agreement.
RECOMMENDATION:
A motion to set a public hearing date for November 6, 2024, regarding the designation for the TPMS DA LLC Reinvestment Zone for tax abatement purposes and its related tax abatement agreement.
SPECIFIC EXPLANATION:
Section 312.002, Texas Tax Code requires cities to adopt tax abatement guidelines and criteria before entering into tax abatement agreements or designating an area as a reinvestment zone. That Section also provides that cities’ tax abatement guidelines and criteria expire after two years. City Council last renewed the tax abatement guidelines and criteria on August 28, 2024. Chapter 312 allows tax abatement agreements within a designated reinvestment zone and requires that the City hold a public hearing before it can adopt an ordinance designating an area as a reinvestment zone. Sec 312.201 allows the governing body of a municipality by ordinance to designate as a reinvestment zone an area, or real or personal property in the taxing jurisdiction or extraterritorial jurisdiction (“ETJ”) of the municipality. Additionally, Section 44-126(a) of the Code of Ordinances requires a public hearing on a proposed tax abatement agreement prior to entering into tax abatement agreements. Public hearings on proposed tax abatement agreements are above the statutory requirements for public hearings in Chapter 312 of the Texas Tax Code.
TPMS 3 DA LLC and TPMS 4 DA LLC (The Company) is proposing the development of a mixed-use office and retail center. In Chapter 44 Section 132 of the Code of Ordinances, pursuant to Ordinance No. 2024-624, the tax abatement program allows for an abatement on eligible Green Stormwater Infrastructure (GSI) costs. The Company submitted a GSI abatement application to the City on March 31, 2024, with all supporting documentation. The proposed development includes the combination of bioswales, permeable pavement, and urban forestry as GSI improvements.
In Chapter 44 Section 133 of the Code of Ordinances, pursuant to Ordinance No. 2024-624, the tax abatement program allows for an abatement on eligible demolition costs. The Company submitted a demolition/demolished abatement application to the City on April 22, 2024, with all supporting documentation. The proposed development includes demolishing existing office and retail buildings on the project site.
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 17, 2024. The proposed date of the public hearing is November 6, 2024. The hearing notice will be published in the Houston Chronicle at least 7 days prior to the public hearings as statutorily required in Chapter 312.201(d) of the Texas Tax Code.
____________________
Gwendolyn Tillotson-Bell
Chief Economic Development Officer