Title
Conduct a public hearing and consider a resolution approving the termination of an Economic Development Program Chapter 380 Agreement between the City and SRB Mesquite, LLC, a Texas limited liability company, dated effective January 1, 2025, and approving the terms and conditions of an Amended and Restated Chapter 380 Economic Development and Performance Agreement (“New Agreement”) between the City and SRB Mesquite, LLC, to promote economic development and to incentivize SRB Mesquite, LLC, to continue redeveloping an existing building and surrounding area located at 1738 North Town East Boulevard in the City of Mesquite, Texas; authorizing the City Manager to finalize and execute the new agreement and administer the new agreement on behalf of the City.
Body
The City of Mesquite entered into an agreement with SRB Mesquite, LLC, which was approved by the City Council on October 6, 2025, to facilitate the commercial development of an 18.6513-acre parcel of land and redevelopment of an existing building at 1738 North Town East Boulevard, as part of the Town East Mall area formerly occupied by Sears.
The agreement required the company to construct a 58,000-square-foot Main Event brand family entertainment business within the former Sears building, opening by December 31, 2026, and with a 10-year lease. As a result of changing market conditions for the parent owner of Main Event (Dave and Busters) resulting in constriction of national store expansions, the developer of the site proposes a new international entertainment anchor, Round1, to occupy a minimum 85,000 square feet under a 10-year lease.
The proposed new anchor offers bowling, arcade, pickle ball, full restaurant, karaoke, and other activities for families and corporate clientele, and has locations throughout the world. The Mesquite location would be the first in Dallas County.
Like the original agreement, the amended and restated agreement requires the Company to make a minimum capital investment of $25M; however, the requirement for completion and Certificate of Occupancy is proposed to be extended for six months, from July 1, 2027, to December 31, 2027.
The amended and restated agreement proposes additional annual sales requirements generated by the businesses on the site, increasing year one performance to $150,000 paid to the City (approximately $15M in taxable sales - previously $100,000/$10M), year two performance to $200,000 paid to the City (approximately $20M in taxable sales - previously $150,000/$15M), and years three - 10 performance to $250,000 paid to the City (approximately $25M in taxable sales - previously $200,000/$20M). Additionally, the amended and reinstated agreement remains unchanged regarding outparcel development and the incentive amount - a one-cent State Use and Sales Tax rebate on any qualifying businesses built on the tract by December 31, 2030.
A $500,000.00 bonus incentive remains available to the Company, should the Company secure a 5-year lease for a minimum 6,000-square-foot Vidorra restaurant; however, the location would be on the second floor of the old Sears vs. the first floor as stated in the original agreement.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Kim Buttram
Head of Department
Kim Buttram