Tucson, Arizona City Council has voted in favor of an incentive that when finished will waive property taxes for a multi-million dollar downtown development. According to Inside Tucson Business, the deal, a Government Property Lease Excise Tax Incentive, would exempt the developer of the 196-unit downtown student housing development The Cadence from paying property taxes for eight years. Costs of the development are estimated to be around $34 million.
The backbone of the agreement will give the city ownership of the properties during the eight years in which it will be exempt from property taxes. The ownership would be strictly for tax purposes, where the management and care of the property would still be the responsibility of the developer. The short-term benefits for the city should come in the form of new jobs and a spike in sales tax due to retail activity, and the long term should bring increased value in the properties that would provide greater property tax revenue in the future.
To read the full article from Inside Tucson Business, click here.