From
Megan Mahan
Title
Resolution granting a Chapter 380 Economic Development Agreement with Grand Prairie Local Government Corporation for a cash grant of $2,000,000 to be used for purchase and maintenance of real property
Presenter
Megan Mahan, City Attorney
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.
To assist in governmental functions relating and to promoting economic development within the City, City desires the Grand Prairie Local Government Corporation ("GPLGC") to establish a program, in coordination with City’s economic development programs, to purchase and consolidate ownership or real property within the City identified as suitable for the location, relocation, and/or expansion of businesses within the City. GPLGC has advised that a contributing factor that would induce GPLGC to establish such a program and make it financially feasible to purchase properties identified as part of such program, a grant of funds is necessary to establish a pool available to GPLGC to purchase identified properties. This agreement creates this fund. Staff has determined that making an economic development grant to the GPLGC in accordance with this Agreement is consistent with City’s Economic Development Program and will (i) further City’s objectives, (2) benefit City and City’s inhabitants, and (iii) promote local economic development and stimulate business and commercial activity in the City.
Financial Consideration
Funding for the cash grant, in the amount of $2,000,000, is available in the Capital Reserve Fund (402590) WO #02110303 (FY21 ECO DEV Projects).
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A CHAPTER 380 PROGRAM AGREEMENT FOR $2,000,000 IN ECONOMIC DEVELOPMENT INCENTIVES WITH GRAND PRAIRIE LOCAL GOVERNMENT CORPORATION
WHEREAS, Grand Prairie Local Government Corporation ("GPLGC") is organized for the purpose of aiding, assisting, and acting on behalf of City in the performance of City’s governmental functions to promote the common good and general welfare of the City on behalf of the City, the promotion of economic development, the acquisition, development and redevelopment of real property within the City, the construction and/or operation of City facilities; and to perform such other governmental purposes of the City as may be determined from time to time by the city council of the City (the “City Council”); and
WHEREAS, GPLGC’s Bylaws, as approved by the City Council, grants to GBLGC the authority to (i) own, purchase, lease, develop, redevelop, construct, maintain, and dispose of real and personal property; and (ii) contract with the City, political subdivisions, units of governments, and other persons and non-governmental entities; and
WHEREAS, as a manner of assisting City in City’s governmental functions relating to the promotion of economic development within the City, City desires GPLGC to establish a program, in coordination with City’s economic development programs, to purchase and consolidate ownership or real property within the City that has been identified as suitable for the location, relocation, and/or expansion of businesses within the City; and
WHEREAS, GPLGC has advised City that a contributing factor that would induce GPLGC to establish the foregoing program and to make it financially feasible to purchase properties that identified as part of such program, a grant of funds is necessary to establish a pool of funds available to GPLGC to purchase identified properties; and
WHEREAS, City is authorized by Article III, Section 52-a of the Texas Constitution and Texas Local Government Code Chapter 380 to provide economic development grants to promote local economic development and to stimulate business and commercial activity in the City; and
WHEREAS, City has determined that making an economic development grant to the GPLGC in accordance with this Agreement is in accordance with City’s Economic Development Program and will (i) further City’s objectives, (2) benefit City and City’s inhabitants, and (iii) promote local economic development and stimulate business and commercial activity in the City.
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 $2,000,000 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 17th DAY OF NOVEMBER, 2020