§ 44-132. Deteriorated/demolished property abatement authorized.

(a)

Creation. A property tax abatement program may be granted for deteriorated/demolished properties that meet the requirements of this section.

(b)

Authorized facility. A facility shall be eligible for abatement if:

(1)

It is a deteriorated/demolished property;

(2)

It is not an improvement project financed by tax increment bonds;

(3)

It is constructed pursuant to and in compliance with a valid building permit issued by the city;

(4)

Construction has not commenced prior to the application for abatement; and

(5)

It is not a facility eligible for economic development abatement pursuant to section 44-127 of this Code.

(c)

Eligible property. The following types of property are eligible for deteriorated/demolished property abatement:

(1)

Buildings;

(2)

Structures;

(3)

Fixed machinery and equipment; and

(4)

Site improvements.

(d)

Ineligible property. The following types of property are ineligible for deteriorated/demolished property abatement:

(1)

Land;

(2)

The value of improvements on deteriorated/demolished properties prior to demolition;

(3)

Residential facilities containing four or fewer dwelling units per structure other than a deteriorated/demolished property redevelopment;

(4)

Modernization;

(5)

Inventory;

(6)

Supplies;

(7)

Tools;

(8)

Vehicles, vessels and aircraft;

(9)

Deferred maintenance investments;

(10)

Property that is owned or used by the State of Texas or its political subdivisions or by an organization owned, operated or directed by a political subdivision of the State of Texas;

(11)

Property that is owned or leased at any time during the term of an abatement agreement by a member of city council or by a member of the city planning commission; and

(12)

Property receiving a historic site exemption as provided in section 44-29 of this Code.

(e)

Value and term of the abatement. Abatement shall be granted effective upon the January 1 valuation date following the year in which the owner receives a final certificate of occupancy for the improvements constructed on the property. Absent extraordinary conditions as determined by the director in the exercise of his or her professional judgment, the amount of abatement shall not exceed 90% for properties located in a target area and shall not exceed 50% for properties not located in a target area.

(f)

Economic qualifications. To be eligible for abatement, the planned new improvement shall:

(1)

Provide an economic benefit to the city, taking into consideration all relevant factors, including the impact of the new improvements on the neighborhood in which the property is located; and

(2)

Be reasonably expected to increase the value of the real deteriorated/demolished property by the lesser of $1,000,000.00 or 1.5 × the value of the demolished improvements on the deteriorated/demolished property.

(f)

Taxability. From the date of execution of the abatement agreement to the end of the abatement period, the value of eligible property shall be taxable in the manner described in subsection (j) of section 44-127 of this Code.

(Ord. No. 2018-391 , § 2(Exh. A), 5-16-2018)