The Domain Companies, the developers of the South Market District, have secured another incentive from the city for the next phase of their project.
Last week, the city’s Industrial Development Board voted to grant a 10-year payment in lieu of taxes, or PILOT, for The Beacon, a $40 million residential and retail building that is part of the $200 million residential and retail development in the Central Business District.
Under the deal, Domain will pay about 4% of the annual tax bill (circa $22,000) while the project is under construction for the next two years. Then in 2017, Domain will have to cover 25 percent of the total amount.
Then the annual payment jumps to 5 percent each year until 2024, when it reaches 40 percent. The payment will jump to 55 percent in 2025 and then to 75 percent in 2026, the final year of the PILOT.
Woodward Design+Build is the general contractor for the entire South Market project.