Council hears proposal to expand tax incentives for residential construction with 2027 sunset

City staff presented an ordinance (2025‑O‑27) to broaden tax incentives for new residential construction and substantial renovation, with eligibility limited to contractors current on city fees and taxes and a sunset date of Dec. 31, 2027. The item was in second reading at the work session and will return for further council consideration.

Erica Hernandez said, “The ordinance before you broadens the availability of tax incentives for new construction or, substantial renovation to residential housing.” Hernandez added that the incentive “is limited to contractors who are up to date on their fees and taxes with the city, and the ordinance has a sunset provision ending it on 12/31/2027.”

Why it matters: The change would expand the pool of projects eligible for tax relief tied to residential construction and renovation; the sunset limits the policy through the end of 2027. No final vote was recorded in the work session.