Title
Conduct a public hearing and consider a resolution approving a Second Amendment to TIRZ No. 12 Reimbursement Agreement, Repurchase Option Agreement and City Chapter 380 Incentive and Performance Agreement (Second Amendment) with IH 20 IP, LLC (Developer) and the Board of Directors of Reinvestment Zone No. 12, City of Mesquite, Texas (IH-20 Business Park) (TIRZ) regarding the developer’s construction of an approximately 210.026-acre Class A Industrial Park in the TIRZ located at 925 McKenzie Road, 3400 McKenzie Road, 2700 McKenzie Road, 4800 Lasater Road and 4900 Lasater Road, Mesquite, Texas, and the acquisition from the City and by the Developer of approximately 100.264 acres of land in the TIRZ and located at 925 McKenzie Road and 3400 McKenzie Road, Mesquite, Texas, and the granting to the Developer of certain TIRZ reimbursements and economic development incentives and authorizing the City Manager to finalize and execute the Second Amendment and take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the Second Amendment and administer the Second Amendment on behalf of the City.
Body
Tax Increment Reinvestment Zone (TIRZ) No. 12 was created on June 4, 2018, by Resolution No. 31-2018, to provide a funding mechanism for the improvements needed to develop the land for commercial use. The project and financing plan was updated per the current project costs and scope and adopted by TIRZ No. 12 Board of Directors on May 15, 2023. The 30-year TIRZ plan estimates $51 million revenue allocated for allowable project costs and $51 million revenue to the City of Mesquite General Fund.
IH 20 IP, LLC, an entity of 42 Real Estate and SLJ Company, proposed in an agreement approved by the City Council on May 15, 2023, to construct a Class A Industrial Park along IH-20 at Lawson Road in Dallas County, Mesquite, Texas. The proposed development combines five tracts of land for a total of approximately 200-acres, requiring extensive infrastructure to become viable for development. Project costs (infrastructure) for the improvements to the site may consist of the excavating and grading, retaining walls, relocation and rebuild of McKenzie Road, new sanitary sewer line, water line expansion and potential relocation, creek enhancements, mitigation, and the development of an electric substation.
The original Chapter 380 Agreement approved on May 15, 2023, outlines the terms and conditions on the part of the developer, the City of Mesquite, and of TIRZ No. 12, City of Mesquite.
A First Amendment to the agreement, approved by the TIRZ No. 12 Board of Directors and City Council on October 16, 2023, allows TIRZ reimbursements throughout all separate agreements associated with TIRZ No. 12 to be reimbursed on a pro-rata basis as described within each approved and executed agreement.
The proposed Second Amendment items include changes to the requirement for conveyance of City-owned land, removal of commencement dates with focus directed to completion timelines of McKenzie Road and the initial building phase, the addition to required construction square footage to allow minimum capital investment as an alternative, and increases to the claw backs for non-performance. The TIRZ project plan and allowable reimbursement not to exceed $25 million remains unchanged.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution (will be provided in a separate memo)
Drafter
Kim Buttram
Head of Department
Kim Buttram