Brendan Lynch of the CB Richard Ellis' leasing team for the project says, "This is a huge coup for potential tenants of ACCC. With the newly granted Freeport exemption from the Cy-Fair School District, tenants of Alamo Crossing could realize anywhere from a 25% to 40% reduction in occupancy costs." In July 1999, the City of Houston granted the same exemption. Thus, the park now qualifies for double Freeport status. The exemption eliminates taxes on goods acquired and imported into Texas that are shipped out of state within 175 days. The combined school and city exemptions equal $2.36 per $100 valuation of inventory.
The Texas legislature adopted the exemption, which may apply to cities, counties, school districts and other local taxing entities in 1989 as a tax incentive. According to CB Richard Ellis, a tenant, for example, with $10 million of Freeport inventory would save about $230,000 annually. "Clearly for a major distribution tenant, there is the potential for millions of dollars in cost savings over the term of the lease," says Jim Stark, another CB Richard Ellis broker for Alamo Crossing. Tenants Compaq, Toshiba International, Bindley-Western Drug Co. and Silver Eagle Distributors along with others have about $300 million to $600 million in inventory in the Freeport-designated area.
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