Title
Resolution granting a 380 Incentive Agreement for 303 Grand Prairie II Ltd. in the amount of $250,000
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
UDC Development (303 Grand Prairie II Ltd.) is a developer who owns a tract of land on the southeast corner of SH 161 and SH 303. They have been working with a major retailer over several years to construct a new location in our City. As an incentive to develop the property for use by a major retailer, the City proposes a $250,000 incentive to help defray some of the development's infrastructure costs that would include deceleration lanes, traffic signals, etc. The incentive would be provided in the form of a performance based Section 380 agreement which would require the construction of at least a 150,000 square foot building occupied by a single retailer generating more than $500,000 a year in general fund sales tax. The City would rebate 50% of the City real property taxes received on the new building annually until a total of $250,000 in incentive funds has been paid out to the developer.
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 303 Grand Prairie II LTD. granting a rebate
Whereas, 303 Grand Prairie II LTD. desire for the property to be developed as a single 150,000 square foot retail space; and
Whereas, the new retail tenant would create more than $500,000 in general fund sales tax annually; and
Whereas, a rebate based on the ad valorem tax on the added real estate property will induce 303 Grand Prairie II LTD to develop the property; 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 ad valorem real estate and business personal property taxes.
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 $250,000 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 18TH DAY OF AUGUST, 2015.