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Council reviews options to revise demolition‑rebuild incentive; members favor one‑time cash grant over tax abatement
Summary
City staff presented three options for the demo‑rebuild rebate program. Several council members said they prefer phasing out property‑tax abatements in favor of a one‑time sliding cash grant tied to improved value; council made no final change during the study session and asked staff to model revised tiers and budget impacts.
City staff reviewed the Farmers Branch demolition‑rebuild incentive program (rebate/abatement) and presented three options, prompting council discussion about whether the city should continue offering multi‑year property‑value abatements or move to a one‑time cash grant.
Perla Tavera, director of economic development, tourism and planning, said that of 45 program applications, 28 remain with the original applicant or buyer and 17 of the 45 homes averaged 4.5 years of homeownership before resale, making them ineligible for the rebate after resale. Tavera reported that the Dallas Central Appraisal District (DCAD) had recorded an aggregate increase in assessed value of about $82,700,000 for properties in the program area and that the city has paid $730,360 to date in incentives; long‑term liability if all reimbursements were claimed was estimated at $1,640,000 under current program rules.
Staff presented three options: (1) a one‑time cash payment (example shown: up to $20,000 per property, annual cap of 10 properties), (2) no cash up front, and instead up to a five‑year property‑tax rebate, or (3) no change to the existing program but limit the number of properties per year. Several council members expressed support for eliminating the multi‑year tax abatement and replacing it with a sliding, one‑time cash grant tied to an updated improvement‑value tier (Councilwoman Bennett proposed a $30,000 one‑time grant and moving improvement value brackets upward to reflect market increases).
Council did not adopt any option at the study session. Members asked staff to model a sliding scale one‑time payment (with higher brackets than the program’s original $65,000 improvement threshold), provide budget impacts and return with an updated proposal for council consideration.
