From
Marty Wieder
Title
Resolution granting a Chapter 380 Incentive Agreement with LGSW Capital Investment LLC for Asia Times Square renovation and expansion for a cash grant of $100,000 and an option for an additional $50,000 upon commencement of construction of a new free standing building
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
The City created the Economic Development Department to oversee programs authorized by Texas law and approved by the City Council. Included among those programs are ones authorized by Chapter 380 of the Texas Local Government Code (the “Program”), to promote state and local economic development and to stimulate business and commercial activity in the City.
Grand Prairie has determined that this Program will directly establish a public purpose - and that all transactions involving the use of public funds and resources in the establishment and administration of the Program as authorized will promote state and local economic development and will stimulate and promote business and commercial activity in the City.
Moreover, the City Council established a Municipal Facilities Fund intended “for economic development purposes to help foster redevelopment projects including redevelopment, new development and business incentives related to development”.
LGSW Capital Investment LLC is constructing a $1.5 million renovation of Asia Times Square for a new Food Court, which includes the addition of a 3,300 square foot second floor and a 2,000 square foot balcony. And LGSW Capital Investment LLC is planning for construction of an 11,000 square foot outparcel building fronting Pioneer Parkway near Great Southwest Parkway that will total $2 million. LGSW Capital Investment LLC has already signed several new tenants for the Food Court and is lining up new tenants for the free-standing retail building. Based on projections at full occupancy, LGSW Capital Investments LLC estimates that tenants will generate $192,960 in annual sales tax revenues for the City of Grand Prairie.
As part of the agreement and in exchange for Developer's covenant to comply with the negotiated conditions and requirements, the City will make economic development grant payments possibly totaling up to $150,000, provided that Asia Times Square completes the free-standing building. A cash grant of $100,000 would be paid immediately and an option for an additional $50,000 would be paid upon commencement of construction of the new free standing building.
Financial Consideration
Projected Investment - Real Estate Improvements: $3.5 million
Projected Investment - Added Sales Tax Revenue upon completion and occupancy: $192,960
Projected Municipal Facilities Fund Grant: $150,000. Funding in the amount of $150,000 is available in the Municipal Facilities Fund (405090) WO #01916701 (RE and New ECO Development).
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS,
TO ENTER INTO A CHAPTER 380 PROGRAM AGREEMENT FOR UP TO $150,000 IN ECONOMIC DEVELOPMENT INCENTIVES WITH LSGW CAPITAL INVESTMENTS LLC
WHEREAS, LGSW Capital Investments LLC desires to continue renovating the Asia Times Square Food Hall as well as developing an additional 11,000 square feet of retail space; and
WHEREAS, new retail and restaurant tenants will eventually create more than $196,960 in annual sales tax revenues for the City annually; 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 up to $150,000 (cash grant of $100,000 immediately and an option for an additional $50,000 upon commencement of construction of a new free standing building) 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 3RD DAY OF NOVEMBER, 2020