The Denison City Council approved an incentive agreement Monday that would provide tax rebates for a proposed apartment complex along Loy Lake Road. The project was first discussed by builder Chip Piazza of NTex Development and city officials in 2013 and 2014 but was delayed.
Under the Chapter 380 Economic Development Agreement, the city will rebate a portion of property taxes for the development over the course of six years. The agreement has an estimated value of about $280,000, based on 120 units, which will be used to fund enhanced features for the $8 million development, City Manager Jud Rex said Monday.
“I think this is yet another housing development that meets the need of the market and the city of Denison,” Rex said before Monday’s meeting. “As Grayson County and Texoma continue to grow, there will be an ongoing need (for housing). This is getting us caught up with the current demand.”
Calls to Piazza for comment on the development by the Herald Democrat were not immediately returned Monday. During the council’s discussion of the agreement, no one spoke in favor or against the item.
In documents for the meeting, city staff described the project as “at least 100 market-rate units with enhanced architectural design and amenities.” Rex said during the initial planning for the project agreements were made for fencing and other screening for neighboring single-family homes. Additionally, the development will only include two-story apartment buildings.
These features would be made possible due to the city’s agreement and incentives, Rex said. Other incentives in the agreement include a rebate of 50 percent of building permit fees and a $500-per-unit park dedication fee waiver.
This represents one of three multifamily housing developments in the city that made strides in the past year. Last week, developers in Gateway Village unveiled the first units of The Residence at Gateway Village, an upscale development near the intersection of FM 691 and U.S. Highway 75. Later this week, developers will break ground on Parkdale Villas — a 144-unit apartment complex that will be developed using state tax credit programs. This will allow developers to offer affordable rates for low- to moderate-income families in the $22 million development.
For this current development, Rex said it would be somewhere between the two developments, comparing it to the Bridges on Travis.
In 2013 and 2014 the City Council approved zoning changes to the property to allow for multifamily development. In 2014, the Denison City Council approved the initial agreement, with the Denison Development Alliance issuing a resolution of support. At the time city officials described the project as a $14.9 million development that would feature 208 units.
Rex said over time the project was scaled back to its current form and will be a phased development instead of building all the units at once. “I think he was just looking for the right developer for this project,” Rex said.
Following Monday’s action, Mayor Pro Tem Janet Gott voiced her support for the project, noting that without developments like this the city will be hindered in its ongoing development.
“I think we are so lacking in housing of this category,” she said. “As long as we have that need unfulfilled people won’t be moving to Denison.”