AMARILLO, TX (KFDA) - The City of Amarillo continues its efforts to make downtown Amarillo a place it hopes businesses will want to call home.
On Tuesday afternoon, Amarillo’s city council gave the go ahead for a new TIRZ backed project at 300 SW 10th.
The goal of TIRZ, known as a Tax Increment Reinvestment Zone which began in 2006, is to support new downtown development.
“The developer is rehabbing the building, but he’s going to be leasing out the space to those tenants,” said Andrew Freeman, Director of Planning and Development Services for the City of Amarillo. “It’s available to any new tenants that might be considering downtown.”
Once the developer, DHY Enterprises, renovates the building, 90,000 square feet of new commercial space will be available for up to seven new tenants.
“He’s got space to do about 1,300 to 1,400 square foot suites, but they can be combined if there’s a larger space need,” said Freeman.
Upon completion, the developer will receive a $35,000 reimbursement grant and a tax rebate on the portion of the increased property value after improvements are made.
“That property value is a $106,000 and we’ll still capture the taxes paid for that portion,” said Mayor Ginger Nelson of the City of Amarillo. “The only part that we’re rebating back is the increase, the new investment. I just think it’s important for us to say that, over and over again, because as citizens we only touch these every once in while.”
“In this case, his value is a little over $100,000 so once he makes improvements anything about that $100,000, 70 percent of that will be rebated back to him for a 10 year period,” said Freeman.
Freeman says the city has seen almost $100 million in new property values in the TIRZ zone over the last 12 years.
He hopes this project will allow for continued growth along the 10th Street TIRZ zone.
“We’ve got Firestone, Lofts on 10th, and now this project,” said Freeman. “It’s really starting to come together and we’re going to start seeing more of the downtown streetscape and buildings coming back online. This is a 1927 building that’s been vacant for a few years, so it’ll be nice to see that come back on.”
City council will hold a final reading for approval at next Tuesday’s city council meeting.