11 - Economic Development & Residential Tax Abatement Agreement with Invest Fannin, LLC - 5 In 5 Program

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M'emorandum Item No. 11 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Economic Development and Residential Tax Abatement Agreement with Invest Fannin, LLC DATE: February 12, 2024 BACKGROUND: Invest Fannin, LLC (the Developer) has applied for an Economic Development and Residential Tax Abatement Agreement under the 5 in 5 Housing Infill Development Program (the Program) to build 5 duplexes, for a total of 10 dwelling units on the following properties that the Developer currently owns: • LCAD- 103422, Gibbons Braden Addition Block 16, Lot 5A, located on 17th St. SE. • LCAD- 103421, Gibbons Braden Addition Block 16, Lot 5A, located at the corner of 17th St. SE and Jackson St. • LCAD- 18409, Lovette Addition Block 281 Lot 6, located at 1610 15th NE St. STATUS OF ISSUE: Staff has reviewed the application and determined that the properties are within the Program Area, and that the proposed improvements meet the criteria for the Program. The proposed agreement, attached hereto, provides incentives under Chapter 380 of the Texas Local Government Code relating to tap fees, building plan review, and permitting as well as a residential tax abatement under the authority of Texas Tax Code Chapter 312. There is no transfer of city trustee properties. All incentives are provided in the Program guidelines and criteria. Notice of the Council's consideration of the tax abatement was duly posted at least 30 days prior to this meeting as required by law. BUDGET: Discounts on the fees described above. The tax abatement will have negligible budgetary impact as the abatement will apply only to the incremental value to taxable value attributable to the required improvements on otherwise undeveloped property. RECOMMENDATION: Staff recommends adopting a resolution approving the attached 5 in 5 agreement with Invest Fannin, LLC.