From
Marty Wieder
Title
Resolution for a Separated Sales Tax Contract with Stream Realty Acquisition, LLC to rebate 50% of the $.01 documented general sales tax revenue on construction materials purchased to complete the new development
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
Stream Realty Acquisition recently purchased acreage zoned light industrial at 4025 East Interstate 30 and is constructing a 296,615+ square foot building there within the Grand Lakes Business Park.
As an incentive to situs construction in Grand Prairie, staff is recommending the City of Grand Prairie enter into a separated contract with Stream Realty Acquisition, LLC to provide a partial sales tax rebate on construction materials purchased to complete this new development; the contract agreement would rebate 50% of the $.01 in documented General Fund sales tax revenue.
Financial Consideration
Projected real estate improvements: $18,900,000
Project sales tax revenue: $225,800 @2%
Projected sales tax abated: $56,700
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A SEPARATED SALES TAX CONTRACT WITH STREAM REALTY ACQUISITION, LLC
Whereas, Stream Realty Acquisition, LLC is developing and building a light industrial building totaling 296,615+ square feet; and
Whereas, a partial construction sales tax rebate will induce Stream Realty Acquisition, LLC to situs building materials sales taxes to Grand Prairie; and
Whereas, the City Council has determined that it is in the public interest to enter into Separated Sales Tax Contract with Stream Realty Acquisition, LLC for this purpose.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. The City Manager is hereby authorized to negotiate and execute an agreement to effectuate this approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, February 19, 2019.