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Memorandum Item NO. 20 TO: Mayor & City Council Rose Beverly, City Manager FROM: Osei Amo-Mensah, Director, Planning & Community Development SUBJECT: Economic Development and Residential Tax Abatement Agreement with The Magnolia Paris, LLC. DATE: June 09, 2024 BACKGROUND: The Magnolia Paris 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 3 duplexes, for a total of 6 dwelling units on the following properties that the Developer currently owns: • Magnolia Corner Addition Lot 7R, Block 115, 8th St. SE • Magnolia Corner Addition Lot 8R, Block 115, 8th St. SE • Magnolia Corner Addition Lot 9R, Block 115, 8th St. SE 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: The estimated cost of the improvement is $450,000.00. 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 Magnolia Paris, LLC.