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 Chapter 380 Agreement, a developer participation agreement establishing City participation in a waterline project, and a waiver of park land dedication requirements, for such purposes with S16 Texas Hold-Em Mesquite, LLC, an Idaho Limited Liability Company, for the construction and development of a self-storage facility, age-restricted single-family rental community and waterline located at 435 Clay Mathis Road and 2235 East Glen Boulevard in Mesquite, Texas.
Body
On December 6, 2021, the City Council approved a Planned Development for Braintree Development for a senior housing development and a multi-story storage facility at the corner of East Glen Boulevard and Clay Mathis Road. The development includes 168 detached family rental units and a 114,000-square-foot, three-story enclosed storage facility. The total projected value of the two projects is $50 million.
During the development process, it was determined that water, sewer and drainage infrastructure were not available to serve the property. Due to the proximity of the nearest facilities, the developer identified significant costs that were not considered part of normal responsibility for any developer. In order to bring these services to this property and allow for additional development in this area, the City is proposing a Chapter 380 Agreement to reimburse the developer for costs associated with drainage, water and sewer infrastructure.
On November 21, 2022, and March 6, 2023, City staff briefed the City Council on a proposed Development Agreement with S16 Texas Hold-Em Mesquite, LLC (Braintree Development). The Chapter 380 Agreement outlines the responsibilities of the developer to bring the quality of development desired by the City Council. Upon achieving these objectives, the City will reimburse the developer for certain costs and fees including water, sewer and roadway impact fees. Additionally, the Agreement outlines the City Council’s commitment to waive the parkland dedication fee. The developer will complete a portion of the trail that connects to the Alcott development and will provide amenities for the residents in the development. The City will also participate through a monetary grant in the extension of a water line that will not only serve this development but will serve other vacant properties in the area for future development and complete a portion of the City’s utility infrastructure that is needed to ensure proper pressure in this part of town.
The total maximum reimbursement due to the developer is $2 million. The developer must meet certain development milestones in order to receive reimbursement and complete all infrastructure prior to receiving the grant.
Recommended/Desired Action
Following the public hearing, staff recommends approval of the resolution.
Attachment(s)
Resolution (Agreement will be provided in Friday’s mail packet)
Drafter
Cliff Keheley
Head of Department
Cliff Keheley