Title
Conduct a public hearing and consider a resolution approving the Amended and Restated Chapter 380 Economic Development Program Agreement ("Agreement Three") by and between the City of Mesquite, Texas ("City"), and MMAH Rodeo Land Holdings, LLC ("Company"), authorized by Article III, Section 52-a of the Texas Constitution and Section 380.001 of Chapter 380 of the Texas Local Government Code regarding a new electronic Freeway-Oriented Marquee Sign and authorizing the City Manager to execute said "Agreement Three" for such purposes identified herein.
Body
This agreement would allow the Rodeo to replace the existing electronic marquee gateway sign that fronts LBJ Freeway with a new Freeway-Oriented Marquee Sign utilizing electronic video screens ("EVS") and allow MMAH Rodeo Land Holdings to transfer ownership of the sign to OUTFRONT Media, Inc., while still preserving and greatly enhancing the City's potential share of sign advertising and lease revenues.
Background:
On October 3, 2011, the City Council approved a revised Chapter 380 Economic Development Program Agreement with the owner of the Rodeo at that time, Camelot Sports & Entertainment, LLC, to erect an electronic marquee gateway sign to advertise and promote the businesses and products sold within the Rodeo City Tax Increment Reinvestment Zone (TIRZ). The Rodeo bought and installed the sign and the City reimbursed the Rodeo $883,920.67 for the cost of the sign from TIRZ increment revenues generated from the Rodeo and other businesses within the TIRZ on an annual basis as revenues became available.
In exchange for the implementing the sign project, the Rodeo had the responsibility to maintain and operate the sign, and the City would receive a share of the gross revenues from advertising on the sign at a rate of 10 percent for the first $100,000 in gross revenues and then 25 percent of gross revenues above $100,000.
As it turned out, advertising opportunities from businesses other than the Rodeo are...
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