Title
Discussion and Possible Action Regarding a First Amendment to the Economic Development Agreement between the City of Mansfield, Texas, the Mansfield Economic Development Corporation, the Board of Directors of Reinvestment Zone Number Four in the City of Mansfield, Texas, and HD5 Entertainment, LLC
Requested Action
To consider approval of the First Amendment
Recommendation
To approve the First Amendment
Description/History
An Economic Development Agreement was approved by MEDC & City Council in July, 2023 with High Five Entertainment as part of the entertainment district within Harvest Point, the first priority project to be developed in the district. Prior to the project commencing, the City was included in the state legislature's most recent update to Texas Tax Code Ch. 351, to enable collections of revenue pertinent to Qualified Hotel projects. To benefit the Qualified Hotel, High Five Entertainment is being developed as a portion of the Qualified Project, as defined in the agreement. If you recall, this venue is approximately 45,000 square feet and will host bowling, laser tag, arcades, bars, restaurants, and other family entertainment across a two-story campus. This project will be located adjacent to a proposed hotel and conference center and this First Amendment allows for the construction of a rooftop performance venue above the building's second story.
Justification
Incentives for this additional development are included as a cash grant upon the commencement of construction of the project. Then, the project must generate a minimum of $868,750 annually in local sales tax or pay the difference to the City, beginning in January 2031, until $13,900,000 has been paid. The project will also yield significant state sales tax revenue that can be used for the Qualified Hotel Project, and is estimated to generate over 1 million visitors per year.
Funding Source
General Fund, MEDC, TIRZ #4
Prepared By
Jason Moore, Executive Director Economic D...
Click here for full text