Economic Development Incentives for Downtown El Paso
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:

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

Development applications which have this graduated reduction are:

• 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:

• 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.

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.

Guidelines & Applications

• Facade Improvement Guidelines - (343 KB)
• Facade Program Application - (124 KB)
• Green Building Grant Program Application - (24.6 KB)
• Green Building Grant Program Guidelines Sept. 2007 - (34.4 KB)
• Sales Tax Rebate Program Application - (75.9 KB)
• Sales Tax Rebate Guidelines (Ordinance) - (22.3 KB)
• Historic Property Tax Exemption Application - (133.0 KB)

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 at Rosalesv@elpasotexas.gov

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