OTHERAPPROVED

City of Winchester City Council - Finance Committee Agenda Packet 2026-06-02

15-Year Tax Rebate Deal Approved for ZeroPak Housing

15 years' incremental property tax rebates (difference between CY25 assessment baseline and post-completion reassessment property tax)City of WinchesterZEROPAK OWNER LLCJune 2, 2026

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Description

The Winchester City Council approved an agreement with ZeroPak Owner LLC and the Winchester Economic Development Authority to provide 15 years of annual grant payments equal to the incremental property tax value above the 2025 baseline, incentivizing the redevelopment of the ZeroPak site into affordable workforce housing. The incentive, delivered as tax rebates each year, supports the creation of 120+ income-restricted units. The EDA and Council both approved the deal in Spring 2026.

Contract Details

Contract Amount

15 years' incremental property tax rebates (difference between CY25 assessment baseline and post-completion reassessment property tax)

Vendor

ZEROPAK OWNER LLC

Agency

City of Winchester, VA

Contract Type

OTHER

Document Date

June 2, 2026

Contract Term

15 years (First Taxable Period: calendar year following completion in February 2026; then 14 succeeding years)

Renewal Date

2041-12-31

Renewal Info

Agreement term is fixed at 15 years but may be extended if the City fails to appropriate funds in a given year. Amendments require all parties' consent, subject to lender approval.