SUBJECT
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A resolution of the City Council of the City of Laredo, Texas in authorizing and approving a fee waiver and a tax abatement agreement between the City of Laredo and Risada Investments LLC for a proposed multi-family project located at 2720 Saltillo St., LOT 7 BLK 1612 Eastern Division, that consists of, in accordance with authorized guidelines and criteria established for the Neighborhood Empowerment Zone (NEZ). This agreement will be for a (10) year period and will abate taxes on new improvements for the purpose of economic development. The project has an estimated capital investment total of $380,000, estimated annual tax abatement total of $1,923.14, and estimated total fee waivers of $3,457.00. Guidelines and criteria for the agreement are set forth in the attached agreement and information.
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PREVIOUS COUNCIL ACTION
The City of Laredo created a Neighborhood Empowerment Zone One, Zone Two, Zone Three, and Zone Four within the City of Laredo, making the necessary findings of public benefit and public purpose to support the creation of the Zone in City Council Districts I, II, III, IV, and VIII in the City of Laredo for the purpose of development.
BACKGROUND
VIVA LAREDO PLAN ALIGNMENT
Level of Alignment
Strong
Supporting Goal(s)/Policy(ies)
Policy 5.1.1 - “Encourage a variety of housing types and densities to meet the needs of all residents at different stages of life and income levels.”
Page: 5.31
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: Because the proposal is for a new multi-family project, it supports the Plan’s stated objective of broadening housing types and densities. The alignment is indirect rather than direct because the resolution concerns incentives for development, not a housing policy implementation measure itself.
Policy 1.1.2 - “Encourage infill development and redevelopment within the existing city limits to maximize infrastructure investments and reduce sprawl.”
Page: 1.27
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: A tax abatement and fee waiver for a project on an identified city lot is consistent with the Plan’s support for infill or redevelopment in existing urban areas. This is particularly relevant where the City’s NEZ program is intended to encourage private investment in housing and services within targeted areas.
Policy 7.6.1 - “Increase the supply of affordable housing options for low- and moderate-income households.”
Page: 7.26
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: The incentive structure may help expand the housing supply by reducing development costs. However, the agenda item as presented does not state that the proposed multi-family project will be income-restricted or formally designated as affordable housing. For that reason, this policy supports only a moderate level of alignment.
Goal 7.6 - “Promote a variety of housing types and price levels to meet the needs of all households.”
Page: 7.26
Source: Viva Laredo City of Laredo Comprehensive Plan
Relevance: Multi-family development can contribute to a broader range of housing options and price points. The resolution advances that goal indirectly by using economic incentives to support new residential investment.
Summary of Alignment
This agenda item demonstrates Moderate alignment with the Viva Laredo Comprehensive Plan. The proposed fee waiver and tax abatement support a new multi-family project, which is consistent with the Plan’s verbatim policies encouraging housing variety, greater residential density, and infill/redevelopment within the existing city. The alignment is strengthened by the City’s stated NEZ purpose of encouraging private investment in housing, businesses, and services in targeted areas.
A Strong rating is not warranted based on the agenda language alone because the item does not expressly require long-term affordability, mixed-income housing, or another direct verbatim implementation mechanism from the Plan. Instead, the resolution functions as an economic development incentive that indirectly contributes to broader planning themes including housing opportunity, neighborhood revitalization, affordability, infill development, and economic development.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that the City Council approve this resolution.
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Fiscal Impact
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
The project has an estimated capital investment total of $380,000, estimated annual tax abatement total of $1,923.14, and estimated total fee waivers of $3,457.00. Guidelines and criteria for the agreement are set forth in the attached agreement and information.