By Joe Ferguson for Arizona Daily Star
The council directed staff on Tuesday night to draw up a formal agreement with the local developer to be brought back for a final vote at a future meeting, but there is majority support for the large tax break in exchange for an estimated $38.5M million investment in the now-vacant downtown property.
The proposed Government Property Lease Excise Tax agreement allows for the abatement of all real property taxes and lease excise taxes on the property during the first eight years following construction.
The direct and indirect benefits of the proposed apartment complex with ground floor retail would generate about $5.2M in revenue for the city and other taxing entities, according to an economic analysis.
The revenue, according to the analysis, is about $1M more than the $4.2M property tax savings to HSL Properties over the course of the eight-year tax break.
The proposed project will create an estimated 240 construction jobs during the two years it will take to build the complex.
Plans call for incorporating two historic buildings on the property into the new project.
Read more at Arizona Daily Star.
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