From
Megan Mahan
Title
Resolution granting 380 Incentive Agreement with Checo Purchase Company, LLC, or affiliated entity, for a partial rebate on sales tax revenue for construction, a credit for related permit and impact fees, a state sales and use and state hotel occupancy tax rebate for 10 years during operation, and a grant of funds pursuant to the Development Agreement and Lease Terms
Presenter
Tom Hart, City Manager
Recommended Action
Approve
Analysis
The City created an Office of Economic Development to oversee economic development programs authorized by Texas law and approved by the City Council. Included among those programs are ones authorized by Chapter 380 of the Texas Local Government Code (the “Program”), to promote state and local economic development and to stimulate business and commercial activity in the City. Grand Prairie has determined that this Program will directly establish a public purpose - and that all transactions involving the use of public funds and resources in the establishment and administration of the Program as authorized will promote state and local economic development and will stimulate and promote business and commercial activity in the City.
The City has negotiated with Checo Purchase Company (“Developer”) to develop a hotel project, in conjunction with a City-owed convention center, which will be located on EpicCentral. As part of the Development Agreement negotiations, the City has offered certain incentives to the developer.
As an incentive to foster such a project in Grand Prairie, staff recommends a construction sales tax rebate to induce the Developer to situs or source construction sales tax to Grand Prairie. The City will rebate 50% of the 1% sales tax to the Developer. The project will also receive a credit for any permit or impact fees normally charged by the City under the terms in the Development Agreement.
This project recieved a Private Letter Ruling from the Comptroller stating that this proj...
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