This week, the Flower Mound Town Council approved an ordinance establishing a Tax Abatement Reinvestment Zone for a future co-working office building in the Lakeside Business District.
The proposed building by Caddo Holdings will be a co-working facility, branded as Caddo-Office Reimagined, will provide executive office suites and co-working space for people who work independently or desire collaboratively shared office space.
The plan is to construct a two-story, 37,000-square-foot office building on the southeast corner of FM 2499 and Spinks Road. The site is a portion of the land known as the Crosby tract, which is currently undeveloped.
A tax abatement is an agreement between a local government and a property owner to exempt part of the taxes owed in return for improvements to the property, according to the Texas Comptroller’s office.
The agreement between Caddo Holdings and Flower Mound includes an eight-year tax abatement (years one through seven at 75%, year eight at 38%) that will save Caddo $145,000, a grant equal to 25% of impact fees ($21,000 in savings) and a building permit fee waiver of $9,500.
The town of Flower Mound estimates that over the first 10-year period, the TARZ will cost the town about $174,000 in taxes and fees, but it will benefit in the amount of $416,000, resulting in the net benefit of about $242,000.
Town Council voted unanimously to approve the agreement during its meeting on Tuesday night. The facility is expected to be completed in spring or summer 2021, and when fully occupied, it will employ about 240 people.