Title
Conceptual Economic Development Incentive Request - Land Clearance for Redevelopment Authority sales tax exemption on construction materials and real property tax abatement; LS Industrial, LLC, applicant
Body
Issue/Request:
This is a conceptual presentation pursuant to the City's Economic Development Incentive Policy for the request by LS Industrial, LLC (“Developer”), as the developer of an approximately 595,000 square foot industrial project to be constructed in two buildings on approximately 50 acres of property located east of Highway 291 South and south of Bailey Road, for sales tax exemption on construction materials and real property tax abatement through the Land Clearance for Redevelopment Authority Act. (This property was previously planned to be “The Grove” project by a prior developer.)
Key Issues:
Evaluation of a request for sales tax exemption on construction materials and real property tax abatement in the amount of 95% for the first 10 years and 50% for the second ten years.
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:
Developer is requesting an LCRA economic incentive in the form of (1) sales tax exemption on construction materials and (2) real property tax exemption in the effective amount of 95% for years 1-10 and 50% for years 11-20.
A summary of the key data associated with Developer’s savings for the requested sales tax exemption on construction materials results is:
The abatement request as a portion of the total project budget is:
3.1% Sales Tax Exemption on Construction Materials
14.8% Real Property Tax Abatement / Public Improvements Assessment (net present value)
17.9% Total Requested Incentives
Public Improvements Assessment:
25% of the requested real property tax abatement during years 1-10 is in the form of a Public Improvements Assessment...
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