Phoenix approves controversial tax incentive for proposed downtown tower

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Posted at 8:47 AM, Sep 25, 2020
and last updated 2020-09-25 11:48:01-04

Phoenix City Council approved a controversial tax abatement for a developer in downtown Phoenix — the first since the city lost a lawsuit over the incentive relating to another high-rise in downtown.

On Sept.16, the city approved a Government Property Lease Excise Tax, or GPLET, transaction for the development of a 19-story, 375-unit apartment project that will include 6,000 square feet of commercial space and 144 parking spaces planned for Second Avenue and McKinley Street.

According to city documents, a minimum of 10% of the units will be designated for workforce housing.

The GPLET agreement would give the city title to the project after construction for an eight-year period. With the city holding the title, the property is not subject to property taxes.

Read more from the Phoenix Business Journal.