El Paso approves rescue of Kress building in downtown

EL PASO, TX – The El Paso City Council approved incentives for the redevelopment of the 85-year-old S.H. Kress Building by Franklin Mountain Investments (FMI), owned by Paul L. Foster.

The city authorized a $2.1 million incentive, comprised primarily of a 100 percent real estate tax rebate for 20 years and a 100 percent sales and use tax rebate for 10 years.

The county also approved a term sheet committing to a $415,000 incentive consisting of a 90 percent tax rebate for 10 years. As part of the agreement, Foster will invest a minimum of $18.4 million.

“We are very excited about the new plans we have for developing the Kress building. We consider the Kress to be an important historic asset for El Paso. We have developed a transformation plan that preserves the design, architecture and great history of that building, and we want it to serve as a place that continues the renaissance of downtown El Paso,” said Paul Foster, CEO of FMI.

El Paso Mayor Oscar Leeser indicated that FMI’s investment is an opportunity for the community and to further the redevelopment of the downtown area.

“With the Kress development agreement, it brings to six the total number of historic preservations approved by the Cabildo. The total investment of all these projects amounts to more than $206 million, of which the City Council has committed $75 million in financial incentives, making these historic preservations possible,” said City Manager Tommy Gonzalez.

Currently, the city is working with the private sector on other preservation projects, such as the De Soto Hotel and the Texas Tower. The city is also making plans to make improvements to the Union Plaza Depot.

Located across from The Plaza Hotel Pioneer Park (Plaza Hotel) and San Jacinto Plaza in downtown El Paso, Kress’ preservation plans include three levels. The basement envisions a luxurious day spa in a “grotto” setting with a full-service beauty salon. The second floor will be a Food Hall offering local and global food and beverage options and shopping experiences with a festive cultural atmosphere; while the second floor plans several entertainment venues, event areas and private dining rooms.

William Kell, chief operating officer of FMI, said the Texas Historical Commission and the National Park Service have approved Kress as a “certified historic structure” that will be eligible for federal and state historic rehabilitation tax credits, which will contribute to the restoration of this iconic building.

Source: MEXICONOW Staff