Title
Resolution authorizing a Separated Sales Tax Contract with Cabot IV - TX1L01, LLC
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
Cabot IV - TX1L01, LLC recently purchased 18.2+ acres of light industrial zoned land at the southwest corner of Trinity Boulevard and Roy Orr, and is considering commencing construction of two (2) speculative light industrial buildings totaling 322,852 square feet.
As an incentive to situs construction sales tax to Grand Prairie, and commence construction on the speculative industrial buildings, staff is recommending the City of Grand Prairie enter into a separated contract with Cabot IV - TX1L01, LLC to provide a partial sales tax rebate on construction materials purchased to complete the new development, and rebating 50% of the 1% documented general sales tax revenue.
Financial Consideration
Projected real estate improvements: $15,478,000.00
Project sales tax revenue: $185,736.00 @2%
Projected sales tax abated: $46,434.00
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A SEPARATED SALES TAX AGREEMENT WITH CABOT IV-TX1LO1,LLC GRANTING A REBATE
Whereas, Cabot IV - TX1L01, LLC is considering developing and building two speculative light industrial buildings totaling 322,852 square feet; and
Whereas, a partial construction sales tax rebate will induce Cabot IV - TX1L01, LLC to situs construction sales tax to Grand Prairie and commence construction of two speculative light industrial buildings totaling 322,852 square feet; and
Whereas, the City Council has determined that it is in the public interest to enter into Separated Sales Tax Contract with Cabot IV - TX1L01, LLC
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that
Section 1. The granting of a separated sales tax rebate 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 2ND DAY OF FEBRUARY, 2016.