Consider authorizing the City Manager to negotiate and execute an agreement with Technology Towers, LLC in accordance with Chapter 380 of the Texas Local Government Code for reimbursement of property taxes to be paid in an amount not to exceed 75% of the increase in value only in property tax payable to the City for a period not to exceed 5 years commencing with Tax Year 2026 (Robert Schneeman, Br

Staff Report & Agenda Item Details

Technology Tower, LLC is a partnership of two existing San Angelo companies in the communications technology industry. They have purchased the existing Sitel Building located at 2702 West Loop 306 and have relocated both company's operations. They invested approximately $7.5M in capital, including building renovation and infrastructure improvements. They currently have 59 employees at an average salary of $51,000 and anticipate hiring an additional 20 employees. The building was previously vacant. Technology Towers, LLC had originally requested a tax abatement in accordance with the ordinance. City Council approved the designation of Reinvestment Zone 24–1 at their meeting on February 20, 2024; approved Resolution 2026-051 to renew participation in the Tax Abatement Program on April 21, 2026, and approved Ordinance 2026-054 Reauthorizing Chapter 1 “General Provisions”, Article 1.09 “Taxation”, Division 3 “Uniform Tax Abatement Policy”; providing for severability; and, providing for an effective date on May 5, 2026. Due to circumstances regarding timelines for approval of the tax abatement agreement, staff has recommended executing a Chapter 380 in lieu of the tax abatement with substantially the same terms as would have existed under a tax abatement. According to the approved Tax Abatement Policy, a capital investment of approximately $7.5M (the proposed increase in value) would receive a 75% tax abatement for a period of up to 7 years, limited, however, to "no more than five tax years following the timely and successful completion of the project." Construction was completed December 2025 making Tax Year 2026 the first eligible rebate year. Terms of the agreement include: 1. Tax reimbursement for a 5-year term not to exceed 75% of the City's portion in property tax value over the base year in 2025. 2. Timely payment of all property taxes. 3. Maintenance of all improvements for the term of the agreement. 4. Maintenance during the term of 59 full-time jobs. 5. Continu

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 7.5/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).