CITY OF EL PASO, TEXAS
AGENDA ITEM SUMMARY FORM
Details
District 8
Economic and International Development, Jessica Herrera, (915) 212-1624
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public hearing date: 1/19/2021
strategic goal:
Goal 1 - Create an Environment Conducive to Strong Sustainable Economic Development
subgoal: Choose an item.
SUBJECT:
APPROVE a Resolution / Ordinance / lease to do what? OR AUTHORIZE the City Manager to do what? Be descriptive of what we want Council to approve. Include $ amount if applicable.
Title
Discussion and action that the City Manager is authorized to sign an Infill 380 Economic Development Program Agreement in a form substantially similar to the attached document by and between CITY OF EL PASO, TEXAS and GREAT RIVER COMMERCIAL, LLC. and EPPX MANAGEMENT PROPERTY, LLC. in support of the redevelopment of the property located at 1101-1125 TEXAS AVENUE, EL PASO, TEXAS 79901.
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Background / DISCUSSION:
Discussion of the what, why, where, when, and how to enable Council to have reasonably complete description of he contemplated action. This should include attachment of bid tabulation, or ordinance or resolution if appropriate. What are the benefits to the City of this action? What are the citizen concerns?
GREAT RIVER COMMERCIAL, LLC. and EPPX MANAGEMENT PROPERTY, LLC applied and qualified for a 10-year Infill redevelopment incentive grant. The Applicant is proposing to completely rehabilitate a four-story building located at 1001-1125 Texas Avenue, on the eastern edge of downtown El Paso. The company will invest a minimum of $3,000,000 to activate an office condo within the currently vacant and blighted property. Upon satisfying all contract metrics, the Applicant will receive the following incentive:
• Property Tax Rebate (City’s Portion): The City’s portion of ad valorem incremental property taxes. 10-year grant period. Capped at $106,589
• Construction Materials Sales Tax Rebate- A one-time rebate of the City’s Portion (1%) of Sales Taxes levied on project-related construction materials. Capped at $15,000
• Building and Planning Permit Fee Rebate: A one-time rebate of project-related Building & Planning permit fees. Capped at $10,000
The total proposed incentive is not to exceed $131,589.
PRIOR COUNCIL ACTION:
Has the Council previously considered this item or a closely related one?
Yes. The original Chapter 380 agreement was formally terminated by City Council action on January 5, 2021 to allow for the activation of this new Chapter 380 agreement which will increase the development’s density and required private investment.
AMOUNT AND SOURCE OF FUNDING:
How will this item be funded? Has the item been budgeted? If so, identify funding source by amount numbers and description of account. Does it require a budget transfer?
General Fund
********************REQUIRED AUTHORIZATION********************
Department Head: Jessica Herrera
If Agenda Item Summary Form is initiated by Purchasing, client department should sign also