Council approves 10‑year tax abatement with HP Contractors after public hearing
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Summary
Following a public hearing, the council voted to approve a 10‑year city tax abatement for HP Contractors, to replace an earlier five‑year agreement; the abatement begins after the first year of operations following project completion.
After opening and closing a public hearing on July 24, the Pecos City Council approved a 10‑year tax abatement agreement with HP Contractors for development of commercial property on Block 44 of the original Pecos townsite. City staff said the proposed 10‑year agreement would replace a prior five‑year Chapter 380 abatement previously granted and would take effect beginning with the appraisal year following the first anniversary of the building’s completion and certificate of occupancy.
City staff explained the mechanics: the developer will pay property taxes during construction and for the first year of operations; the city will rebate the city portion of taxes under the abatement schedule thereafter. Staff clarified this action pertains only to the city portion of local property tax and that the agreement replaces the earlier five‑year deal rather than stacking on top of it.
Councilman Sedona moved to approve the agreement; Councilwoman Trujillo seconded and the motion carried. Council discussion requested that staff ensure the agreement text explicitly supersedes the prior Chapter 380 agreement and confirmed the start of the abatement is tied to the first anniversary after completion and certificate of occupancy. The council did not state detailed financial projections in the public record at the hearing; staff will return with financial details if further analysis is requested.