Developers Pitch Incentives Package To Council

By ABC-7 Reporter Martin Bartlett

EL PASO — City Council is one step closer to deciding on a huge incentives package that could bring El Paso an all new kind of shopping experience.

A Dallas-based developer working with Western Refining CEO Paul Foster showed off the plans for the property on which the abandoned Farah Building now sit.

Developers want to replace that eyesore with a high-end lifestyle center.

It’d be called The Fountains.

Developers say they’re in talks with stores like Crate&Barrel, Williams-Sonoma, Anne Taylor Loft and White House | Black Market.

Developers want the city to give up on about $8 million in taxes to help defer the cost of tearing down the old building.

They’re going to ask the county to give them about $4 million in incentives, too.

Developers say it’s a worthy investment because just the demolition of the Farah Building could cost more than $20 million, they said.

Despite that the big question is how to structure those tax rebates… something city economic leaders say would work.

“The property has been vacant for years — and was even declared to be blighted by city council in 2004 — rebating property tax increases will benefit the community and not impact the city’s current income,” said Kathy Dodson, city economic development director.

Developers said Foster will buy the old Howard Johnson motel right next to the Farah building if the city and county approve the tax abatements.

If they don’t, developers said the whole deal will be off.

City council is set to take up the issue again in two weeks.