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 Grant: $200,000-300,000
Projected - Sales Tax Amount Rebated (associated with situs): $100,000-200,000
Projected - Total Incentive Amount: $400,000
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER into a Chapter 380 Program Agreement for Economic Development Incentives with AERO FIRMA CORPORATION granting a rebate
Whereas, Aerofirma Corporation desires to redevelop TR6, Allen Jenkins, ABST 713, Pg 765, Dallas County, Grand Prairie, Texas, and build a new 187,000 square foot mixed use multi-family and retail/restaurant project; and
Whereas, demolition of the existing facilities will require close to $300,000 in asbestos abatement, and the planned new mixed-use facilities will total $28,000,000 in building construction; and
Whereas, a partial construction sales tax rebate will induce Aerofirma to situs construction sales tax to Grand Prairie, and a $200,000-300,000 Municipal Facilities Fund grant will help foster Aerofirma’s catalyst redevelopment project along the Pioneer Parkway corridor in Grand Prairie; and
WHEREAS, the City Council has determined that it is in the public interest to enter into a Chapter 380 Program Agreement for Economic Development Incentives and partially rebate certain sales tax revenue and provide a redevelopment grant.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. THAT the granting of an incentive through a Chapter 380 incentive agreement is approved and the City Manager is hereby authorized to execute contracts to effectuate this approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 4TH DAY OF JUNE, 2019.