From
Marty Wieder, Economic Development Director
Title
Resolution granting 380 Incentive Agreement with Aerofirma Corporation for a partial rebate on sales tax revenue for construction and a redevelopment grant; total incentive amount to equal $400,000
Presenter
Marty Wieder, Economic Development Director
Recommended Action
Approve
Analysis
Aerofirma Corporation has purchased the site of the former Town & Country Furniture Store and retail spaces fronting Pioneer Parkway. Aerofirma intends to demolish the current structures and replace them with a multi-family complex and new retail spaces along Pioneer Parkway totaling 187,000 square feet, with an estimated construction value of $28 million. Aerofirma Corporation representatives estimate annual taxable sales of $6.4 million associated with retail and restaurant tenants.
Corporation officials have documented the difficulties of redeveloping this property in light of its irregular shape and the need for asbestos abatement. Moreover, the property has multiple easements that they must design and develop around.
Economic Development has reviewed Aerofirma Corporation’s application for incentives and agrees with the applicant that such a redevelopment will serve as a catalyst for revitalizing the Pioneer Parkway corridor.
As an incentive to foster such a project in Grand Prairie, staff recommends a construction sales tax rebate to induce Aerofirma to situs or source construction sales tax to Grand Prairie and a grant from Municipal Facilities Fund 405090 - 1916701 (intended “for economic development purposes including re-development, new development and business incentives related to development”).
Financial Consideration
Projected Investment - Real estate improvements: $28,000,000
Projected Investment - Added Sales Tax Revenue associated with situs: $200,000-$400,000
Projected Investment - Added Sales Tax Revenue upon completion/occupancy: $6,400,000
Projected - Municipal Facilities Fund Gra...
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