A second multifamily developer is asking the city of Mission for a tax abatement.
Indianapolis-based developer Milhaus wants an 85% tax abatement — above the city’s 75% cap — for a proposed apartment complex near the Powell Community Center, according to city documents. City staff evaluated the project proposal against its tax abatement policy and believes a 72.5% tax abatement is sufficient and warranted.
The Mission City Council plans to discuss the request at its Wednesday work session.
This is the second tax abatement request in Mission
- The city council received its first tax abatement request last spring from a subsidiary of Moffit and Associates for 58 Nall, a downtown apartment complex project.
- At that time, City Administrator Laura Smith told the city council that Milhaus planned to ask for its own tax abatement.
- The city crafted a new tax abatement policy this summer as a result of the two requests and an outdated policy.
- The city council in a 6-to-2 vote approved the 70% tax abatement request for the 58 Nall project in October.
A look at the tax abatement policy
- Mission’s 2023-updated tax abatement policy caps developers at up to 75% deferred property taxes for a 10-year period.
- The baseline starts developers off at 45% if developers meet certain criteria — such as making a minimum capital investment of $ 3 million. Developers can earn higher percentages by meeting additional criteria.
- Prior to summer 2023, the city’s tax abatement policy started developers out at 100% tax deferment for a 10-year period.
- The city never activated the old tax abatement policy. So, the 58 Nall project is the first time tax abatement has been approved in Mission.
This item was taken off a previous city agenda
- Originally, the city planned to discuss the tax abatement request during its Jan. 10 finance and administration committee meeting.
- Smith told the Post via email on Jan. 9 that the city pulled the item from the agenda due to a developer scheduling conflict.
- Now, the city plans to discuss the request at its Jan. 17 city council work session.
- The work session begins at 6 p.m. at city hall, 6090 Woodson Road, immediately preceding the city council meeting at 7 p.m.
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