In a unanimous vote earlier this month, the Gilbert Town Council prohibited the use of Government Property Lease Excise Tax incentives for redevelopment projects.
Under a GPLET, ownership of a property is transferred to the municipality and leased back to the developer, meaning there is no property tax on the site. The incentive is one of the few allowed under Arizona law and has been used extensively by towns and cities to promote targeted redevelopment efforts.
In a presentation to the Council, Gilbert staff reported GPLETs have never been used there, nor has there been any stated intention of using the incentive in the future. Staff recommended passage of the resolution to allay some residents’ concerns about potential GPLET use after Gilbert’s recent actions to designate its northwest corridor as a redevelopment district.
In the same session, Council voted to name the Heritage District as the town’s central business district under a new Arizona law allowing for the development of so-called “middle housing”—such as duplex, triplex, fourplex and townhome construction—within a mile of central business districts. (Source)