Title
Conduct a public hearing and consider a resolution authorizing the sale by the City of Mesquite, Texas, (the “City”) of an approximately 5.315 acre tract of City-owned property located within the Mesquite Rodeo City Reinvestment Zone Number One, City of Mesquite, Texas, (the “City tract”) to MM Mesquite 50, LLC, a Texas limited liability company (the “Developer”), authorizing the City Manager to negotiate, finalize and execute a contract of sale, deed and all other documents necessary or advisable to complete the sale of the City tract to the developer, approving the terms and conditions of a program (Chapter 380 Agreement) to promote local economic development and stimulate business and commercial activity in the City and authorizing the City Manager to finalize and execute an agreement for such purposes with the developer providing a grant to the developer in the amount of the purchase price of the City tract, the City tract to be developed as part of a mixed use development containing retail, restaurant, office, residential components and other associated uses in accordance with City Ordinance No. 4595 (the “Iron Horse Project”) in the City of Mesquite, Texas, and authorizing the City Manager to administer the agreement on behalf of the City.
Body
On May 1, 2006, the City purchased a 5.315 acre vacant tract, located adjacent to the Convention Center, in the amount of $950,000 for the purpose of either developing additional parking for the Convention Center or to hold as an incentive tool for future development on the 56 acre Azoulay property.
On November 19, 2018, the City Council passed Resolution No. 69-2018 approving the Iron Horse Development Agreement, which established the development standards and financing mechanisms to reimburse the Developer for authorized public improvements.
The Iron Horse Development Agreement requires that the Developer purchase the City tract in the amount of $926,100, which is the fair market value as determined by a recent independent appraisal, in accordance with the terms of the proposed City Tract Economic Development Agreement (“Chapter 380 Agreement”). The City tract will be developed as part of the approved Iron Horse Village development, and the Chapter 380 Agreement must be executed at the same time as, or subsequent to, the PID bond sale.
For consideration of the Developer’s construction of public improvements and the development of Iron Horse Village, the Chapter 380 Agreement would grant to the Developer the $926,100 fair market purchase price of the City tract. The bond ordinance authorizes the City Manager to execute a Landowner Consent to the levy of assessments, but the City tract will be conveyed to the Developer before any assessments are collected - the City will not pay any property assessments.
The proposed City Tract Economic Development Agreement and any deed or dedication of the City tract shall provide that if construction of private horizontal improvements has not occurred within five years, the City tract shall revert back to the City.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the resolution.
Attachment(s)
Resolution (Agreement will be provided in Friday’s packet)
Drafter
Ted Chinn
Head of Department
Ted Chinn