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Contact us today if you need more information, have a question or wish to submit a comment regarding DOWNTOWN EL PASO.
Kathy Dodson, PhD |
Victor Venegas Economic Development Coordinator |
Veronica R. Soto Redevelopment Manager |
Ernesto Gamboa Senior Economic Development Specialist |
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To encourage revitalization, the City of El Paso offers incentives for development in Downtown. The incentives are part of an overall strategy to leverage investment, lower the cost of doing business and level the playing field for businesses and property owners choosing to invest in Downtown properties. The incentives are part of the implementation of the Downtown 2015 Plan adopted by City Council in Oct. 2006. Unless specifically exempted, all projects seeking incentives must meet current building standards, codes and permitting requirements as well as be current on all City obligations.
The restoration and renovation of the historic Plaza Theatre, construction of several museums, a remodeled convention center and redevelopment of vacant lots and buildings (Mills Plaza, 1st Avenue Lofts, Magoffin Villas) are examples of individual projects which have begun the transformation of Downtown. Imagine a vibrant renewed Downtown El Paso, the center of a dynamic and diverse region, alive with activity and inviting to everyone - the destination for new residential housing, shopping, nightlife, families and visitors.
The El Paso DOWNTOWN Plan is the roadmap to a renewed DOWNTOWN. The Plan is the result of the public and private sectors working together to make DOWNTOWN El Paso a center of commerce, culture and tourism.
To encourage revitalization, the City of El Paso offers incentives for development in Downtown. The incentives are part of an overall strategy to leverage investment, lower the cost of doing business and level the playing field for businesses and property owners choosing to invest in Downtown properties. The incentives are part of the implementation of the Downtown 2015 Plan adopted by City Council in Oct. 2006. Unless specifically exempted, all projects seeking incentives must meet current building standards, codes and permitting requirements as well as be current on all City obligations.
Traditional incentives are also available for projects that meet the City’s adopted Incentive Policy which emphasizes significant investment in capital and labor and are reviewed on a case-by-case basis
Downtown Incentives
Façade Improvement Program: Designed to help downtown property owners and/or tenants improve the aesthetic appearance of downtown properties by providing up to $10,000 in grant funds for façade improvements to encourage renovation and rehabilitation of the exterior of buildings in the Downtown Area. Funding for the program is provided by the Downtown Management District and the City of El Paso. The program provides reimbursable grants on a dollar-to-dollar match for approved improvements that restore, rehabilitate, enhance or beautify a structure. Limited program funds are approved on a first-come, first-served basis. Pre-application required.
Sales & Use Tax Rebate Program: Designed to encourage new construction and major renovation of downtown properties, the City offers a sales tax rebate on labor and materials used to remodel, rehabilitate or build a structure in downtown El Paso. A minimum expenditure of $100,000 is required. The program sunsets in 2012. Pre-application requested.
Fee Reduction Program: Several development permit fees for projects located within the TIRZ district are reduced. The program sunsets in five years on August 31, 2012. The reductions vary for fees with most of these following a graduated percent reduction based on the following schedule:
Year 1 |
FY 2007-08 |
100% |
Year 2 |
FY 2008-09 |
80% |
Year 3 |
FY 2009-10 |
60% |
Year 4 |
FY 2010-11 |
40% |
Year 5 |
FY 2011-12 |
20% |
.Development applications which have this graduated reduction are:
• Grading permit-clearing and access
• Subdivision
• Vacation of recorded subdivision
• Resubdivision
• Vacation of public easement
• Metes and bounds dedication of a public easement or right-of-way
• Special Permit
• Rezoning
• Detailed Site Development Plan
Additional fee reductions are available for the following:
• Rezoning for Historic Designation: There is no fee for properties seeking historic designation, or an H-overlay, via a rezoning application. This is a permanent provision.
• Building Permits for Properties with Historic Designation (H-overlay): 50% reduction in the plan checking fee for properties with a historic designation (historic zoning overlay).
• Off-Premise Sign Demolition: 25% fee reduction (sunsets in 2012)
• Demolition of any building or structure: 25% fee reduction (sunsets in 2012)
Tax Exemption of Historic Properties and Areas of Potential Effect:
This citywide program is available for any property owner of structures within a designated municipal historic district as well as for areas designated as Areas of Potential Effect. There are nine historic districts in the city, with two of these overlapping the Downtown Plan area. City Council has also designated several areas within Downtown as Areas of Potential Effect eligible for this exemption. The program consists of a tax exemption for restoration/renovation of exteriors of properties with some interior work also eligible when done in conjunction with exterior work. The tax exemption is for the City’s portion of property taxes. The exemption time frame varies from four to 10 years, depending on the value of the investment based on the pre-improvement value in accordance to the table below:
| Value of Improvements as compared to value prior to preservation on a percentage basis | Exemption Period (Years) |
50% or more of assessed value...................... |
10 |
between 40% and 49.99% of assessed value |
8 |
between 30% and 39.99% of assessed value |
6 |
between 20% and 29.99% of assessed value |
4 |
TIRZ: A Tax Increment Reinvestment Zone or TIRZ is a method of funding public investments in an area slated for redevelopment by recapturing, for a time, all or a portion of the increased tax revenue that may result if the redevelopment stimulates private investment. Click here to view a map of the reinvestment zone.
Additional Incentives Available City-Wide with direct Downtown benefits
Green Building Grant Program: This city-wide program designed to encourage development of energy efficient buildings provides grants for attainment of LEED certification for new construction or major renovations. Grant awards start at $50,000 and increase up to $200,000. For certain downtown areas, grant awards double to a maximum of $400,000.
New construction or major remodels of commercial or mixed-use properties are eligible for the program. Structures must be at least 15,000 square feet. Grants range from $50,000-$200,000, depending on level of LEED certification. Grants double to $100,000-$400,000 for buildings of at least five floors, of which at least 50% have been vacant at least five years prior to grant submission. Properties must become LEED-certified and achieve a minimum of 10 of the 17-point requirement in the “Energy and Atmosphere” section of the LEED Project Checklist.
International Building Code: The City of El Paso has adopted the International Building Code, a developer friendly code that allows for improvements that consider the design limitations of older buildings to encourage adaptive reuse by allowing different levels of modification to existing structures.
Zoning Code Incentives: The City of El Paso adopted a new zoning code that promotes mixed-use development and allows for greater development flexibility for adaptive reuse and mixed-use projects. Click here for more information.
For more information contact:
Verónica Rosales-Soto, AICP, Redevelopment Manager
City of El Paso Economic Development Department
2 Civic Center Plaza, El Paso, TX 79901
Phone: (915) 541-4810 or via e-mail
Download the appropriate PDF documents for more information or to submit your application for DOWNTOWN investment incentives:
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Facade Improvement Guidelines - (343 KB)
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Browse our list of Frquently Asked Question regarding DOWNTOWN development.
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To encourage revitalization, the City of El Paso offers incentives for development in Downtown. The incentives are part of an overall strategy to leverage investment, lower the cost of doing business and level the playing field for businesses and property owners choosing to invest in Downtown properties. The incentives are part of the implementation of the Downtown 2015 Plan adopted by City Council in October 2006.
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There are various incentive programs:
• Sales Tax Rebate
• Historic Tax Exemption
• Green Building Grant
• Façade Grant Improvement
• Reduced Permitting Fees
• Tax Exemption for properties near Historic Districts and in Historic Districts
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TIRZ No. 5 in El Paso’s Downtown is the area where a special financing district was put into place in December 2006 for a period of 30 years. A TIRZ, also known as tax increment financing, is a method of funding public investments in an area slated for redevelopment by recapturing, for a time, all or portion of the increased tax revenue that may result if the redevelopment stimulates private investment.
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The tax increment is derived from the difference in appraised value between the year in which the reinvestment zone is established (base year) and each year the reinvestment zone is in existence.
A municipality establishes a reinvestment zone according to guidelines in the Texas Tax Code; other taxing entities elect to participate in a TIRZ by approving a participation agreement, which sets forth the percentage of tax increment the taxing entity is willing to dedicate to the TIRZ fund.
A board of directors is formed consisting of 5 to 15 members who are representatives from the participating taxing entities and/or representatives of other areas as set forth in the Tax Code, is established each TIRZ.
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There are several beneficiaries including:
City of El Paso - Raises money for redevelopment without having to deplete general revenues.
Property Owners/ Tenants - City commits to redevelopment efforts & public improvements.
Taxpayers - Funds redevelopment projects without raising taxes.
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The Board consists of 15 members with 10 members representing the City appointed by the Mayor with the approval of Council. Five members are appointed by the following taxing entities: El Paso County, El Paso Community College, Downtown Management District and City/Mayor. Their responsibility is to develop a Project & Financing Plan for adoption by City Council, oversee TIRZ district management & make recommendations to City Council, ensure expenditures of tax increment within the district, provide City Council with a TIRZ fund report annually and create operational procedures to manage their own proceedings & TIRZ fund.
If you have additional questions, please contact us or call (915) 541-4670.
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1st Avenue Lofts Projected Completion: Late 2009 |
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Judson F. Williams Convention Center Projected Completion: Summer 2009 |
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Magoffin Park Villas Projected Completion: |
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Mills Plaza District Projected Completion: September 2009 |
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United States Courthouse Projected Completion: 2009 |
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DoubleTree Hotel Projected Completed: Spring 2009 |
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Sun Metro Transfer Terminal Projected Completed: September 2009 |
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