From
Bill Crolley
Title
Resolution granting 380 Incentive Agreement with Prairie Waters Development granting a partial rebate on eligible City tax revenue
Presenter
Marty Wieder, Director of Economic Development and Bill Crolley, Executive Director of Planning, Development and Transportation
Recommended Action
Approve
Analysis
Prairie Waters Development is the retail/commercial development at the southeast corner of S.H. 360 and Ragland Road in Grand Prairie. This site is one of the last intersections in Grand Prairie along State Highway 360 with attractive access and visibility. In an effort to attract retail/commercial developments at this intersection, developer Charlie Anderson of CWA Management, LLC, has proposed constructing a "Connector Road" as shown on Exhibit "A", as well as associated infrastructure to serve other adjacent properties and provide oversizing for service to additional properties.
Mr. Anderson’s Prairie Waters Development will have approximately 34 acres of retail/commercial acres in the Development shown on Exhibit "A". Mr. Anderson desires a 10-year Chapter 380 Agreement for the City to share applicable sales, real property and personal property tax revenues with him, as allowed by the State of Texas. Mr. Anderson’s development consultants estimate that the City of Grand Prairie will realize approximately $2,382,362 in combined general sales tax, City real property tax and City business personal property taxes over the 10 year agreement, if all 34 acres are developed during that time, and depending upon the type of retail and commercial tenants he places in Prairie Waters.
The 10 year Agreement term will begin with the issuance of the first retail/commercial Certificate of Occupancy on the subject 34 acres. As it relates to uses, Lot 10 on Exhibit "A' shall be either be retail anchored or a combination of junior anchors, so that it all development is sales tax generating; lots 1,4,5,6,7,8,9 and 11 shall be comprised of restaurant, retail/commercial uses that also generate sales tax revenues.
Staff members agree it is in the public interest to enter into a Chapter 380 Program Agreement for Economic Development Incentives and recommends a partial (50%) rebate for certain eligible tax revenue in the amount not to exceed $1,195,046.
Financial Consideration
Projected - Net Added City Tax Revenue: $2,382,362 (over 10 years, with build out)
Projected - Use Tax Amount Rebated: $1,195,046 (over 10 years, with build out)
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CHAPTER 380 PROGRAM AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES WITH TA FUND I, LPTA LAND FUND I, LP PROVIDING A PROGRAM OF ECONOMIC DEVELOPMENT GRANTS, EQUAL TO A PORTION OF CERTAIN CITY ELIGIBLE TAXES N PROPERTY LOCATED AT THE SE CORNER OF STATE HWY. 360 AND RAGLAND ROAD.
Whereas, TA Land Fund I, LPTA Land Fund I, LP ("Developer") intends to develop a retail/commercial development of approximately 34 acres at the southeast corner of S.H. 360 and Ragland Road in Grand Prairie as shown on Exhibit "A" (the "Development"); and
Whereas, Developer will construct the “Connector Road” as shown on Exhibit "A" (future Prairie Waters Drive) and associated infrastructure that will serve other adjacent subdivisions and provide oversizing for service to additional properties; and
Whereas, to facilitate the Development, Developer has requested a 10-year Chapter 380 Agreement with the City to be funded by a share of applicable City sales and use tax revenue generated at the Development, as allowed by the State of Texas pursuant to Chapter 380 of the Local Government Code and The City of Grand Prairie; and
Whereas, it is estimated that the City may realize approximately $2,382,362 in combined general sales tax. City real property tax and City business personal property taxes over the 10 year term of the agreement (should all 34 acres be developed during that time), depending upon the type of retail and commercial development; 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 to be funded in amounts equal to a portion of City (1%) sales and use tax and the increase in City real and personal property taxes generated at the Development ("Eligible Taxes") to facilitate the construction of the Connector Road and the Development.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
SECTION 1. The City Council hereby establishes a program of economic development grants to execute contracts consistently with this resolution to effectuate this approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 1ST DAY OF NOVEMBER, 2016.