During a recent city council meeting, discussions centered on addressing infrastructure challenges and the potential development of affordable housing in Amarillo. Council members highlighted the need for a new northeast interceptor to alleviate issues stemming from an overloaded sewage system, particularly in the North Heights area. This infrastructure upgrade is seen as crucial for accommodating future growth across the city.

The meeting also featured a presentation from JES Holdings LLC representatives, Mike Ash and Ryan Garcia, regarding the Estacado Estates project, which aims to provide 46 units of affordable housing specifically for senior citizens. The project, located at South Washington and Southwest 58th Street, is designed to cater to individuals aged 55 and older, with a focus on independent living. The proposed development includes amenities such as a fitness center and community kitchen.

Ash explained that while the project does not require direct financial support from the city, it does seek a tax exemption that would forgo some revenue. Currently, the site generates approximately $3,196 in annual taxes, with the city’s share being about $15.22. If developed, the property could yield an estimated $58,000 in taxes, of which the city would receive around $9,600.

Garcia emphasized the pressing need for affordable housing in Amarillo, citing a 2022 housing study indicating that nearly 75% of residents would qualify for the proposed development. The study also revealed that over 12,000 renters in the city are spending more than 30% of their income on housing, highlighting the urgent demand for affordable options.

The council was encouraged to consider a resolution supporting the project, with Ash suggesting that a letter from the mayor expressing the council's support could facilitate the process. Additionally, he proposed a potential payment-in-lieu-of-taxes (PILOT) agreement, which would allow the developers to maintain current tax payments with an inflation adjustment over time.

The discussions underscored the city’s commitment to addressing housing needs while balancing fiscal responsibilities, as council members weighed the benefits of supporting the development against the potential loss of tax revenue.