(CD 8) Authorize Execution of a Five-Year Tax Abatement Agreement with MA-BD, LLC for the Construction of an Approximately 14,450 Square Foot Industrial Building for Office and Warehouse Use, Having a Cost of at Least $2,127,062.00 on Property Located at 1129, 1133 and 1137 E. Daggett Avenue, Adjacent to the Historic Southside Neighborhood and within Neighborhood Empowerment Zone Area Six and Neighborhood Empowerment Reinvestment Zone No. 6R

Summary

This item authorizes a Five-Year Tax Abatement Agreement with MA-BD, LLC for the construction of an approximately 14,450 square foot industrial building for office and warehouse use. The project is located at 1129, 1133, and 1137 E. Daggett Avenue, adjacent to the Historic Southside neighborhood. The estimated investment for the building is at least $2,127,062.00. This property is within Neighborhood Empowerment Zone (NEZ) Area Six. The tax abatement will be applied to the increased value of improvements, freezing the assessed value for municipal property tax purposes for five years starting January 2028, based on the pre-improvement value of $20,250.00. The estimated municipal property tax abated is approximately $21,376.97 per year, totaling an estimated $106,884.85 over the five-year period. The agreement can be assigned to an affiliate of the property owner without City Council consent, but assignment to a new, unaffiliated owner requires City Council approval.

Citizen Impact

Residents may see new industrial development in the Historic Southside neighborhood area. While the tax abatement results in an estimated loss of $106,884.85 in property tax revenue over five years, this is intended to incentivize a significant private investment of over $2.1 million in new construction.

Confidence

high