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Council designates 3.5-acre reinvestment zone near airport to enable tax-abatement talks with prospective aerospace firm
Summary
Assistant director Drew Brassfield said the designation creates the legal tool under Texas Tax Code chapter 312 to consider future tax abatements for a proposed aircraft hangar and related investment above $12 million; council adopted ordinance No. 8201 after a public hearing.
The Amarillo City Council on July 8 voted to designate a roughly 3.5-acre area near the airport as Reinvestment Zone No. 25, a necessary step to allow future tax-abatement negotiations for a prospective manufacturing or aerospace facility.
Assistant Director of Planning Drew Brassfield told the council the designation is a procedural step under Chapter 312 of the Texas Tax Code that must precede any request for a property-specific tax abatement. "Designation of an area as a reinvestment zone is required before the city council can entertain a request for a tax abatement," Brassfield said, adding the parcel under consideration sits near 10801 Baker Street and the firm that prompted the request expects the project investment to exceed $12 million.
Brassfield said the ordinance before council does not commit the city to an abatement or to financial terms; it only creates the zone so the city may negotiate incentives if the prospective tenant seeks them. He noted previous councils established tiered abatements that step down over time as one model for balancing taxpayer return with incentive value.
Council closed the public hearing after no members of the public spoke for or against the proposal and adopted Ordinance No. 8201 by voice vote. The motion recorded three affirmative votes.
Why it matters: The reinvestment-zone designation is an enabling action that preserves the city’s ability to consider targeted tax abatements for job-creating or retention projects on a site-by-site basis. Final abatement agreements would return to council for approval and would include negotiated terms about duration and percentage reductions.
Next steps: Staff said the proposed abatement or lease and any airport lease for the site will return to council for separate consideration on July 22, when contractual and incentive specifics will be negotiated and presented.
