Title
Conduct a public hearing and consider a resolution approving the terms and conditions of a program to promote local economic development and stimulate business and commercial activity in the City, authorizing the City Manager to finalize, execute and administer an Economic Development Program Agreement (Chapter 380 Agreement) with FHI Towne Crossing, LP, a subsidiary of Flying Horse Investments, LLC, for the major renovation and development of the property located at 3600 Gus Thomasson Road, Mesquite, Texas.
Body
On May 15, 2023, City staff briefed the City Council on a proposed renovation and redevelopment of the Towne Crossing Shopping Center by Flying Horse Investments, LLC. At that time, City Council authorized staff to move forward with a Chapter 380 Development Agreement to revitalize the Towne Crossing Shopping Center and secure a renewed grocery anchor lease.
The Chapter 380 Agreement requires the developer to invest a minimum of $2 million to renovate the exterior of the shopping center as well as a minimum of $3 million to redevelop the grocery anchor space. The fa?ade improvements will help fill storefront vacancies and ensure future viability of the center. In addition, the agreement encourages growth in the number of sales tax producing tenants in the center. The proposed Chapter 380 Agreement provides a one-percent sales tax rebate based upon annual taxable sales produced by the shopping center for a term of 10 years, as well as a $1 million grant paid out over three years for a maximum total incentive of $3 million.
This Chapter 380 Agreement encourages renovation and development of a primary shopping center in the Gus Thomasson Corridor, an area which has seen significant public investment and remains a community economic development focus.
The attached resolution will authorize the City Manager to finalize, execute and administer a Chapter 380 Agreement that outlines the terms and conditions of the developer and the City.
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