Title
Resolution granting a 380 Incentive Agreement for IKEA Property, Inc. in the amount of $6,000,000
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
IKEA Property, Inc. is the development company of IKEA, a major furniture retailer opening a new location in our City on the southeast corner of the SH 161 service road and Mayfield Drive. IKEA is a well known, established retailer with two other Texas locations in Frisco and Round Rock. As an incentive to locate in the City we have proposed a $6,000,000 incentive to help defray some of the development's infrastructure costs of locating in our City. The incentive would be provided in the form of a Section 380 agreement which would require the construction of at least a 250,000 square foot building occupied by the retailer, generating more than $500,000 a year in general fund sales tax. The City would rebate 50% of the City general fund sales tax received from the new IKEA location until a total of $6,000,000 has be distributed.
Financial Consideration
None
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER into a Chapter 380 Program Agreement for Economic Development Incentives with IKEA PROPERTY INC. granting a rebate
Whereas, IKEA PROPERTY, INC. would develop a single 250,000 square foot retail space; and
Whereas, IKEA would create more than $500,000 in general fund sales tax annually in the new Grand Prairie location; 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.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. The granting of an incentive in the amount of $6,000,000 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 15TH DAY OF DECEMBER, 2015.