Title
Conduct a public hearing and consider a resolution approving a First Amendment to TIRZ No. 12 Reimbursement Agreement and Performance Agreement with MSAP 216, LLC, and 42 BP, LP (Collectively the Developer) and the Board of Directors of Reinvestment Zone No. 12, City of Mesquite, Texas (IH-20 Business Park) (TIRZ) and the City of Mesquite, Texas, regarding the Developer’s construction of an approximately 217-acre Class A Industrial Development in the TIRZ located at 229, 231, and 1600 Lawson Road, Mesquite, Texas, and the granting to the Developer of certain TIRZ reimbursements, and authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the First Amendment, and administer the First 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 within the TIRZ plan for commercial use. The project and financing plan was updated per the current project costs and scope and presented to the TIRZ No. 12 Board of Directors on May 15, 2023, at 5:00 p.m., for adoption and was approved unanimously. 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 for all tracts within the TIRZ. Revenue is calculated by the estimated valuation of real property within the TIRZ area which is created by private investment.
The Airport East project is one of four major developments within TIRZ No. 12, being approximately 217-acres with room for approximately three million square feet of industrial space. The Chapter 380 agreement requires minimum benchmarks for reimbursement of qualifying TIRZ infrastructure projects associated with the development of the site.
Per the existing agreement, approved by the City Council on October 16, 2023, the developer is eligible for up to $8 million reimbursement on approved infrastructure projects and may begin to receive reimbursement upon the construction of at least 250,000 square feet or $30 million capital investment, commencing by August 31, 2032, and completion by December 31, 2035. An additional 250,000 square feet or $30 million capital investment, commencing by August 1, 2037, and completion by July 1, 2042, is required to retain qualification for continued reimbursement.
The proposed amendment increases the allowable reimbursements be increased to up to $14 million, with the addition to the project plan being a two-lane public road connecting Scyene Road to Lawson Road through the proposed development. All reimbursements are based on actual costs for approved infrastructure projects accepted by the City of Mesquite.
The attached resolution will authorize the City Manager to finalize and execute a TIRZ No. 12 First Amendment to the Reimbursement Agreement that outlines the responsibilities and obligations of the developer and the City.
After a TIRZ No. 12 board meeting to adopt the Third Amendment to the Project and Finance Plan and approve the First Amendment to the Chapter 380 TIRZ Reimbursement Agreement, the City Council will consider approval of the resolution.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Kim Buttram
Head of Department
Kim Buttram