NewsBusiness

Actions

Tempe to consider tax abatement for proposed 14-story office building near Tempe Beach Park

250 Rio.jpg
Posted at 9:12 AM, Jun 23, 2022
and last updated 2022-06-23 12:12:40-04

The developer of a proposed 14-story office building near Tempe Beach Park is seeking an eight-year abatement of property taxes before construction starts.

Houston-based real estate firm Hines requested the abatement by way of a government property lease excise tax, according to the proposed development agreement. Tempe City Council will hold its first of two public hearings on the matter on Thursday. To be eligible for the GPLET, the developer would have to sell the land to the city for the eight-year period.

Called 250 Rio, construction on the 200,000-square-foot office building could start in the first quarter of 2023, according to the developer.

In exchange for the abatement, Hines will commit to making contributions to Tempe Union High School Education Foundation and Tempe Impacts Education Foundation; the Tempe Coalition for Affordable Housing; $150,000 to a future veterans’ memorial near the site; monies for the improvement of the Ash Avenue roadbed; and public infrastructure valued at $1.95 million on Rio Salado Parkway, among others, according to city of Tempe documents.

Brandon Dillingham, managing director of Hines in Phoenix, said the second hearing for the development agreement will happen in August, once the council returns from recess.

Read more of this story from the Business Journal.