The acronym GPLET was unknown in your MesaZona blogger's urban vocabulary until September 2017 at an early morning monthly meeting of the City of Mesa's Economic Development Advisory when a new employee was introduced to make a presentation for the Southwest RDA study area that involved the Zion Public Finance Group from Salt Lake City, Utah. There are some links to posts published at that time on this blog provided farther on.
GPLETS are complicated incentives and programs that give tax breaks for developers. If you are interested in what information is provided by the City of Mesa, go here . At first glance looking into the subject, there were only two properties here in Mesa receiving those 'tax breaks', one of which is the old Valley National Bank Buidling @ the NEC of Macdonald/Main Streets, with the old clock tower Town Center on the corner and now named One North Macdonald Center, shown in an old image before a $6 Million-Dollar redo renovation that transformed the modern steel-and-glass box into this post-modern make-over. It recently sold for $50,000,000.
Available at that time was the 99-Year Lease Agreement with the city.
What the city re-couped from the recent deal is unknown.
Blogger Note: The number of GPLET Properties
So what, some people might ask. Why does it matter? . . . it just might matter to keep city officials - and the dealmakers - honest, because of this story about Tempe today on KJZZ:
If you don't have the time, listen to it > CLICK here
The City of Tempe always maintained these real estate offerings were not sweetheart deals or loopholes, but “development incentive tools ... allowed by Arizona state law.”
The two parties announced a settlement Tuesday. Mike Sunnucks of the Phoenix Business Journal joins The Show to tell us about it. . . "
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Government Property Lease Excise Tax (GPLET) GPLET is a redevelopment tool used to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax.
Government Property Lease Excise Tax (GPLET)
The Government Property Lease Excise Tax (GPLET), established by the State of Arizona, is a redevelopment tool used to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax. Under the state statute an excise tax is established for the building type of use and is calculated on the gross square footage of building. The use of the excise tax cannot continue for more than twenty five years and requires that the land and improvements are conveyed to a government entity (such as the City of Mesa) and then leased back for private use. The excise tax rate can be abated for the first eight years after a certificate of occupancy on the building is issued if the property is located within a Central Business District and a Redevelopment Area.
Source: http://www.mesaaz.gov/business/economic-development/incentives-programs/government-property-lease-excise-tax-gplet
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LEARN MORE about other City of Mesa Incentives and Programs
http://www.mesaaz.gov/business/economic-development/incentives-programs/mesa-incentives-and-programs
Please note this:
PHX East Valley Angel Investor Initiative The City of Mesa is working with a number of PHX East Valley partners to catalyze economic growth by raising awareness of the importance of angel investing and enhancing access to early-stage funding for area tech startups. We are seeking individuals interested in becoming PHX East Valley angel investors.
Learn how you can generate return on investment while helping to grow businesses in our region at www.investphxev.org. Download the fact sheet [PDF].
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RELATED CONTENT:
ENTIRE LIST OF CURRENT GPLET PROPERTIES LISTED
Government Property Lease Excise Tax
Image from CBRE Town Center Sale |
Available at that time was the 99-Year Lease Agreement with the city.
What the city re-couped from the recent deal is unknown.
Blogger Note: The number of GPLET Properties
So what, some people might ask. Why does it matter? . . . it just might matter to keep city officials - and the dealmakers - honest, because of this story about Tempe today on KJZZ:
If you don't have the time, listen to it > CLICK here
Tempe Business Incentive Land Deals Ended By Settlement
Published: Wednesday, June 27, 2018 - 12:39pm
"Back in January, State Representative Vince Leach asked Attorney General Mark Brnovich to look into the City of Tempe’s GPLET deals, incentive programs run by city governments to lease land to developers and businesses in exchange for lower property taxes.
In a Petition for Special Action, Brnovich agreed, saying the deals “unfairly shift the tax burden to other hardworking taxpayers.”The City of Tempe always maintained these real estate offerings were not sweetheart deals or loopholes, but “development incentive tools ... allowed by Arizona state law.”
The two parties announced a settlement Tuesday. Mike Sunnucks of the Phoenix Business Journal joins The Show to tell us about it. . . "
________________________________________________________________
Government Property Lease Excise Tax (GPLET) GPLET is a redevelopment tool used to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax.
Government Property Lease Excise Tax (GPLET)
The Government Property Lease Excise Tax (GPLET), established by the State of Arizona, is a redevelopment tool used to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax. Under the state statute an excise tax is established for the building type of use and is calculated on the gross square footage of building. The use of the excise tax cannot continue for more than twenty five years and requires that the land and improvements are conveyed to a government entity (such as the City of Mesa) and then leased back for private use. The excise tax rate can be abated for the first eight years after a certificate of occupancy on the building is issued if the property is located within a Central Business District and a Redevelopment Area.
Source: http://www.mesaaz.gov/business/economic-development/incentives-programs/government-property-lease-excise-tax-gplet
________________________________________________________________________
LEARN MORE about other City of Mesa Incentives and Programs
http://www.mesaaz.gov/business/economic-development/incentives-programs/mesa-incentives-and-programs
Please note this:
PHX East Valley Angel Investor Initiative The City of Mesa is working with a number of PHX East Valley partners to catalyze economic growth by raising awareness of the importance of angel investing and enhancing access to early-stage funding for area tech startups. We are seeking individuals interested in becoming PHX East Valley angel investors.
Learn how you can generate return on investment while helping to grow businesses in our region at www.investphxev.org. Download the fact sheet [PDF].
________________________________________________________________________
RELATED CONTENT:
AZCentral.com-50 minutes ago
Tempe has agreed to end its disputed use of tax incentives to developers as part ... use of tax incentives, called government property lease excise tax, or GPLET.
KJZZ-1 hour ago
Back in January, State Representative Vince Leach asked Attorney General Mark Brnovich to look into the City of Tempe's GPLET deals, incentive programs run ...
The State Press-19 hours ago
Arizona Attorney General Mark Brnovich and the City of Tempe came to an ... The GPLET is usually lower than the property tax would be for a given piece of land ...
Arizona Capitol Times-May 25, 2018
The Attorney General's Office wants the Arizona Supreme Court to weigh in on whether property tax incentives in lease agreements that the City of Tempe ...
AZCentral.com-Mar 14, 2018
Tempe voters by a 9-to-1 margin supported more transparency in political spending, which could send a message to leaders beyond the East Valley city.
________________________________________________________________________ENTIRE LIST OF CURRENT GPLET PROPERTIES LISTED
Government Property Lease Excise Tax
The City of Mesa Leases Reported to Arizona Department of Revenue under A.R.S. § 42-6202 (D), (E).
This database may include parcels not subject to the tax, specifically exempt parcels.
The lease agreement for each lease listed below is available by submitting a GPLET Public Records Request Form.
Any confidential information will be redacted from the record.
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