MIDLAND, Texas — Midland City Council approved a tax abatement at Tuesday's meeting, progressing a developmental agreement with C. Hodges Developmental L.P. that would bring a Bass Pro Shops to Midland.
Alongside Bass Pro Shops, a family entertainment center, retail stores and restaurants will be developed.
This comes a day after the Midland Development Corporation approved a master development agreement at their meeting.
A tax abatement essentially serves as a tax break toward developmental companies who wish to develop in certain cities.
In exchange for developing on certain plots of land and other incentives, local governments provide tax breaks on property taxes.
"A tax abatement is something through what they call a Chapter 380 program that the state of Texas has allowed," said city councilman Dan Corrales. "This allows for economic incentivization to further development, so cities can help grow with commerce.”
In this case, C. Hodges' incentive is developing along a 17-acre plot of land near the intersection of Highways 191 and 158 in a mutually beneficial deal for both city and company.
“Tax abatements are meant to promote growth where you don’t have it," said Corrales. "So, if you have something that is already in place and they’re asking for a tax abatement, we have to ask ourselves, 'what is the value that provides to the tax payers? It’s already built.' This is meant to get something where you want it.”
The total cost of the project is estimated to be around $45 million, while the tax abatement is set for 10 years.
While Hodges initially won't pay much in property taxes, it won't take long for the City of Midland to start seeing revenue from the development.
“We’re talking about a $45 million development," said Corrales. "That will help bring in more sales tax revenue, and bring in more property tax once the 10-year period of abatement goes away."
However, extra revenue isn't the only benefit Midland is set to gain from this.
“Jobs, quality of place, places to go and things to do with your family, then it’s like a planet forming from a planetesimal, the gravity just sucks everything in," said Corrales. "You put that out there, all along 191 it’ll continue to develop, you will see more growth.”
With the tax abatement and master developmental agreement in place, more zoning and planning can be done on the land, while also determining what will join the Bass Pro Shops.