Title
A resolution extending the date to execute an Economic Development Program Agreement (Chapter 380 Agreement) between the City of Mesquite, Texas and Sundance MC, LLC, for economic development incentives in connection with the development of two corporate hangars at Mesquite Metro Airport, establishing an effective date for the agreement and authorizing the City Manager to finalize and execute the agreement.
Body
Revision - The original agreement was approved by the City Council on December 17, 2018, and provided that the agreement was to be executed by both parties by February 14, 2019. The agreement was not executed prior to February 14, 2019. The proposed revised agreement extends the date to execute the agreement to August 30, 2019, establishes December 17, 2018, as the effective date of the agreement and corrects a reference from Article II, Section 52-a to Article III, Section 52-a of the Texas Constitution in Article VIII, Section 6.
Project description - Sundance MC, LLC, proposed the construction of two 9,600-square-foot corporate hangars at Mesquite Metro Airport on a ground lease with the term of 30 years with two five-year extensions. At the end of the ground lease, the property will revert to City ownership. One of the proposed hangars will be utilized for the developer’s personal aircraft and the other hangar would be leased to other corporate users. As a part of this agreement, the City agrees to reimburse the City development fees up to $12,950.00 and the developer would receive an incentive equal to the City’s portion of the ad valorem property taxes collected on each hangar, including the ad valorem taxes collected on corporate aircraft with a taxable situs at these facilities, up to a combined maximum incentive cap of $8,850.00. The total incentive package equals $21,800.00. The taxable values are as follows:
1670 Airport Blvd. Hangar Value: $500,000.00
1680 Airport Blvd. Hangar Value: $500,000.00
Aircraft taxable value: Currently unknown
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Eric Pratt, C.M.
Head of Department
Eric Pratt, C.M.