From
Bob O'Neal, Economic Development Director
Title
Resolution designating Asia Times Square as a reinvestment zone and granting a 50% / 7 year partial tax abatement to LGSW Capital Investment, LLC (Asia Times Square) on real estate improvements
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
LGSW Capital Investment, LLC (Asia Times Square) has made a significant long-term investment in modernizing an existing 130,000 square foot facility on the southwest corner of Pioneer Parkway and Great Southwest Parkway that had been vacant approximately 12 years. The Loh Family owns and operates the 120,000 square foot retail mall development on the same property that was renovated in 2008 and includes a Hong Kong Market grocery store, restaurants, bank, and other retail stores.
As an incentive for LGSW Capital Investment, LLC to expand their operations in our city, staff is recommending a 50% / 7 year partial tax abatement on the added value of real estate improvements. The appraisal district estimates the value of the real estate improvements of $10.6 million. They expect to add 100 full time employees at this location.
Because their facility is located in the enterprise zone, minimum added investment level of $1,000,000 and employment requirement of 10 added jobs shall be reached to qualify for the incentive package.
The Finance and Government Committee has reviewed this incentive request and recommended approval.
Financial Consideration
Added real property improvement: $10.6 million. Annual Property Tax Revenue from real property, equipment and inventory before abatement: $70,898 a year, $496,286 for 7 years
Amount Abated: $35,449 a year, $248,143 for 7 years
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, APPROVING A SEVEN YEAR, 50% PARTIAL TAX ABATEMENT AGREEMENT WITH LGSW CAPITAL INVESTMENT, LLC
Whereas, LGSW Capital Investment, LLC is a company which purchased and rehabilitated 130,000 square foot building, and
Whereas, the commercial facility created a minimum of 10 jobs and necessitated expenditures of at least $10,000,000 in ad valorem real estate investment and building improvements; and
Whereas, the attraction of a long-term investment and the establishment of new jobs in the City enhance the economic base of area taxing entities; and
Whereas, tax abatement is one of the principal means by which the public sector and the private sector can forge a partnership to promote real economic growth within a community; and
Whereas, any tax incentives offered must be strictly limited in application to those new and existing industries that bring new wealth to the community in order to avoid reducing the needed tax revenues of area taxing jurisdictions; and
Whereas, the Property Redevelopment and Tax Abatement Act (the Act), Chapter 312 of the Texas Tax Code, authorizes taxing jurisdictions to provide property tax abatement agreements prior to granting any future tax abatement, said guidelines and criteria to be unchanged for a two year period unless amended by three-fourths vote; and
Whereas, the City Council has determined that it is in the public interest to enter into and execute a Partial Tax Abatement with LGSW Capital Investment, LLC.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. The seven year, 50% partial tax abatement agreement with LGSW Capital Investment, LLC is approved and the City Manager is hereby authorized to execute the contract.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 19TH DAY OF AUGUST 2014.