The Tucson City Council moved forward on a tax incentive agreement with the Johnny Gibson’s Downtown Market.
The owners of the downtown redevelopment project at 11 S. Sixth Avenue — which includes a grocery story, a distillery, a bar, and another retail space — will save $55,035 a year on property taxes for eight years. The project is expected to open next month.
On Tuesday the council directed city staff to draw up a lease agreement formalizing the Government Property Lease Excise Tax incentive.
This type of incentive requires the property owner to increase the value of the property by at least 100 percent. An economic analysis must show the benefit to the government is greater than the benefit received by the property owner, said city economic initiatives director Chris Kaselemis.
The economic analysis shows a $2.9 million direct tax revenue for state and local governments and school districts, and at least 50 new jobs, said staff member Camila Bekat.
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Construction costs for the project are estimated at $2.2 million.
This is the fifth GPLET agreement awarded by the city since the incentive was created in 2012.
Previous projects were the Herbert apartments, the Mister Car Wash headquarters, the Cadence student apartments, the One East Broadway apartments and the Rialto block.
