SUBJECT: An Ordinance designating the Cullen SH Apartments, LP Tax Abatement Reinvestment Zone
RECOMMENDATION: (Summary) City Council adopt an Ordinance designating the Cullen SH Apartments, LP Tax Abatement Reinvestment Zone
SPECIFIC EXPLANATION:
Pursuant to Section 312.204 of the Texas 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 Texas Tax Code defines the criteria for designating a tax abatement reinvestment zone, one of which is that the area be reasonably likely to attract major investment in the zone that would be a benefit to the land.
A public hearing on the designation of a reinvestment zone for Cullen SH Apartments LP. was held before City Council on December 2, 2015 at 9:00 A.M., prior to Council’s consideration to designate the reinvestment zone. Notice of the public hearing was published in the Houston Chronicle on November 24, 2015. The Office of the Mayor requests that City Council designate an approximate 7.7 acre site located at 1901 Cullen and 1905 Cullen Blvd, Houston, 77023, which is in the proximity of Interstate 45 and Cullen Blvd., as the Cullen SH Apartments, LP Reinvestment Zone for tax abatement purposes (the “Zone”). This action will enable City Council to consider approval of a tax abatement agreement for Cullen SH Apartments, LP to support the investment in real and personal property involved in the construction of a new multi-story student housing developing comprising 531 beds and other on and offsite improvements.
The estimated value of new abatable investment subject to the proposed ad valorem tax abatement is $22 million for the construction of the new building.
The project and the Zone meet the criteria established by the City of Houston guidelines for tax abatement adopted on March 26, 2014 by Ordinance No. 2014-0245.