Title
Resolution granting a 380 Incentive Agreement for IKEA Property, Inc. in the amount of $6,000,000
Presenter
Bob O'Neal, Economic Development Director
Recommended Action
Approve
Analysis
IKEA Property, Inc. is the development company of IKEA, a major furniture retailer opening a new location in our City on the southeast corner of the SH 161 service road and Mayfield Drive. IKEA is a well known, established retailer with two other Texas locations in Frisco and Round Rock. As an incentive to locate in the City we have proposed a $6,000,000 incentive to help defray some of the development's infrastructure costs of locating in our City. The incentive would be provided in the form of a Section 380 agreement which would require the construction of at least a 250,000 square foot building occupied by the retailer, generating more than $500,000 a year in general fund sales tax. The City would rebate 50% of the City general fund sales tax received from the new IKEA location until a total of $6,000,000 has be distributed.
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 IKEA PROPERTY INC. granting a rebate
Whereas, IKEA PROPERTY, INC. would develop a single 250,000 square foot retail space; and
Whereas, IKEA would create more than $500,000 in general fund sales tax annually in the new Grand Prairie location; 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 $6,000,000 through a Chapter 380 incentive agreement is approved and the City Manager is hereby authorized to execute contracts to effectuate this approval.
PASSED AND ...
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