EL PASO, Texas (KFOX14/CBS4) — The city of El Paso said it offers incentives to those who want to build housing in the city, incentives that a city official said are not being used.

On Tuesday, the city council gave final approval to a nearly $1 million apartment complex, using municipal tax breaks to help the project move. The tax aid is part of a development plan to attract investment to El Paso.

“So more interior, downtown, up, some of your old areas, five points, anything from before the 1950s generally qualifies for anything over $50,000,” said Karina Brasgalla, interim director of development economic and international for the city. from El Paso.

Brasgalla promoted the Infill Development Incentive Policy, which provides tax and upfront tax rebates to those building or expanding multi-unit complexes.

“It’s targeted at vacant or underutilized parcels. So that’s anything from a vacant lot where it’s just land or a vacant building that might be empty, but also for things that aren’t being used to their full potential,” he said. Brasgalla.

An empty lot in West El Paso is set to go from completely vacant to home to 12 apartment units and 12 parking spaces. It is almost identical to the apartments built right next to it – Lola Apartments – using the same developer and the same tax incentives. It would cost the city $26,790 in upfront tax refunds, but they insist they’ll make more than that in the long run. And they want the developers to know the current program and potentially expand it next year.

Brasgalla said the policy is used 10-15 times a year, far less than the city would like. She believes it is due to a lack of awareness.

“So we have some users that come in quite regularly and use that most people don’t know exist. So we don’t get as much use as we’d like and it’s really for smaller developments. And so many of them do so without knowing that this is a benefit that is available to them,” Brasgalla said.

Brasgalla wants every El Pasoan and out-of-towner interested in such projects to know about the program,

If you are thinking about redeveloping an existing building anywhere in the city, I would encourage people to come and talk to us. If we can’t, if they don’t qualify for this program, we have a number of other programs with other types of assistance that we offer.

It is looking to expand the program sometime in 2025.

“You’ll see in the coming year, we’re looking at expanding that program, focusing on specific types of development, like housing in particular, and really trying to enrich that program and make it more useful for people.” , Brasgalla said.

While the city currently offers rebates on building materials, property taxes and permit fees, Brasgalla wants to go further to bring more housing to the city.

“Increasing capacity for some types of initial development support, focusing particularly on utilities, which we know is a huge problem for the inner city. In terms of housing, there are a number of different types of financial mechanisms that both the state. and the federal government have put them in place in recent years, and so we’re looking at how we can better leverage these programs and maybe adopt some of these mechanisms at the local level.”

The program would also include the preservation of historic downtown buildings.

Brasgalla said the city will launch an advertising blitz if approved by a new city council in 2025, but if you want to see the incentives currently offered by the program, visit them. website.

The El Paso Chamber President and CEO chimed in on the incentive.

In a written statement, Ricardo Mora said the Chamber supports policies like this because it attracts new investment to the border area.

The full statement reads:

The El Paso Chamber supports policies that encourage sustainable economic growth and enhance the vitality of our region. The El Paso City Council’s decision to provide tax and fee abatements for infill development is a strategic step toward revitalizing underutilized areas of El Paso. By spurring development in established neighborhoods, this program creates opportunities for local businesses, attracts new investment, and strengthens our community’s economic resilience.

Infill development not only promotes efficient land use and reduces urban sprawl, but also promotes a more connected, accessible city that benefits both residents and businesses. For our members and the wider business community, this program means new opportunities for expansion, innovation and partnership in our city centres.

The Chamber is committed to supporting efforts like these that align with our mission to promote economic development and a prosperous business environment. We look forward to seeing how this program improves El Paso’s economic landscape and creates a more sustainable and prosperous future for our community.

RELATED: The El Paso City Council is considering four proposals to improve low-income housing

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