Title
Conceptual Economic Development Incentive Request - Land Clearance for Redevelopment Authority - Real Property Tax Abatement Request for Southside Shopping Center; Brain Dev 3, LLC, applicant
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by Brain Dev 3, LLC (“Developer”), the owner of the Southside Shopping Center, for real property tax abatement pursuant to the Land Clearance for Redevelopment Authority (LCRA Act) to provide compensation for the redevelopment work to be undertaken by Developer at the Shopping Center.
Key Issues:
Evaluation of a request for real property tax abatement in the amount of 100% for 4 years and 50% for years 4-10, for an overall effective abatement rate of 70% for 10 years, to facilitate the renovation of the Southside Shopping Center.
Proposed City Council Motion:
No motion requested as this is only a conceptual presentation. The Developer is seeking the City Council's feedback pursuant to the City's Economic Development Incentive Policy.
Background:
The City Council approved Ordinance No. 8894 on June 9, 2020 which approved the Petition for establishment of the Southside Plaza Community Improvement District. On September 29, 2020, the City Council approved Ordinance No. 8968 which approved the Cooperative Agreement between the City, the District and the Developer regarding implementation of the CID for the renovation work to be funded by the CID.
The CID Cooperative Agreement provides for the maximum reimbursement in the amount of $1,439,379, plus any Operating Costs, Costs of Formation, and the Maximum Reimbursement Interest (together, the “Maximum Amount” as defined in the Cooperative Agreement), for the renovation work that will be undertaken by the Developer. After the CID and Cooperative Agreement were approved, it was discovered that the sales tax levels that were projected in the documents that accompanied the CID Petition and...
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