From
Megan Mahan
Title
Assignment, Assumption and Release among the City, Grand Prairie Sports Facilities Development Corporation, and the Grand Prairie Metropolitan Utility District relative to the Agreement for Payment in Lieu of Taxes ("PILOT")
Presenter
Megan Mahan, City Attorney
Recommended Action
Approve
Analysis
The Grand Prairie Metropolitan Utility Reclamation District (GPMURD) was created in 1985 by the state legislature to reclaim land from the flood plain through a series of levees, lakes and pump system. The property protected by the levee system is primarily owned by the City, the Sports Corporation, Global Gaming/Lone Star Park, and Pollock Paper. The City and Sports Corporation properties are tax-exempt and provide no tax base for the GPMURD assessment.
Accordingly, after debt payments were complete, the City entered into an agreement with GPMURD and started paying a payment-in-lieu-of-tax “PILOT” to assist with the ongoing operations and maintenance of the levee system. The City believes that the Sports Corporation should be paying this amount instead of the City. This Assignment Agreement will assign the PILOT Agreement to the Sports Corporation and will release the City from any obligations therefrom. The Sports Corporation and the GPMURD have already approved this assumption of the agreement.
Financial Consideration
The Sports Corporation will assume any financial responsibilities under the assigned agreement.