San Angelo City Council will conduct a public hearing on a proposal to offer a 75% tax abatement to Technology Tower for its $7.5 million investment in major building improvements. The site is the former Sitel building on Loop 306.
Three years ago the City provided $250,000 to support the renovations. Just over two years the Development Corporation Board addressed a tax abatement for up to $5.1 million in improvements. The meeting packet stated:
COSADC also recommended Council consider extending a tax abatement of City property tax on the property. This item was approved by COSADC at their meeting on May 24, 2023 and ratified by City Council at their meeting on June 6, 2023.
At their meeting on October 3, 2023 CIty Council approved the renewal of Chapter 1 “General Provisions”, Article 1.09 “Taxation”, Division 3 “Uniform Tax Abatement Policy”, of the CIty Code of Ordinances.
Technology Towers, LLC has requested a tax abatement in accordance with the ordinance. According to the approved Tax Abatement Policy, a capital investment of $2.5M -$5M (the proposed increase in value) would receive a 60% tax abatement for a period of up to 7 years, limited, however, "no more than five tax years next following the timely and successful completion of the project."
Assuming current tax rates and a 7 year rebate at 60% of the increase in appraised value, the total tax rebate would be approximately $89,484.00 over the seven year period of the abatement.
The building renovation cost went up $2.4 million in the interim, as did the abatement percentage which rose 15%. The former $90,000 abatement could rise to $223,000, depending on the city's ability to increase the property value under new state law.
Staff may or may not share this history as they are known for their minimalist approach in providing elected officials information. Will a new City Manager be able to change that longstanding oddity? I offer no predictions.
