SUBJECT: An Ordinance to terminate the Aspen Heights, Houston Reinvestment Zone related to the tax abatement agreement between the City and Breckenridge Group Houston Texas, LP.
RECOMMENDATION: (Summary)
City Council adopt an Ordinance terminating the Aspen Heights, Houston Reinvestment Zone related to the tax abatement agreement between the City and Breckenridge Group Houston (“Aspen Heights”) Texas, LP.
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 reasonable likely to attract major investment in the zone that would be a benefit to the land.
The Aspen Heights, Houston Reinvestment Zone (the “Zone”) was designated by City Council on May 28, 2014 by Ordinance 2014-0478 as required by Chapter 312 of the Texas Tax Code. Subsequent to the City’s approval of the designation of the Zone, Breckenridge was unable to secure the resources to finalize the land purchase and construct the project. The developer cancelled the plan to develop the site and invest in the project. Therefore, the Zone must be terminated since Aspen Heights does not own and will not own the property for which taxes were to be abated.
The Agreement and all rights and obligations of the City and Aspen Heights shall cease and terminate as of May 28,2014, the date upon which City Council approved the tax abatement agreement and designated the Zone, and Aspen Heights shall not be entitled to any tax abatement as provided in the Agreement.