Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving an Economic Development and Performance Agreement by and Between the Mansfield Economic Development Corporation (“MEDC”) and GKA ESTATE HOLDINGS, L.L.C. (“GKA”), and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date.
Requested Action
Consider GKA Estate Holdings, L.L.C. Economic Development Agreement
Recommendation
The MEDC Board has recommended reimbursement not to exceed $101,000 for utility improvements for a new 15,000 sq. ft. medical office building located at 624 N. Miller Road being developed by Dr. Gary Alexander.
Description/History
Dr. Gary Alexander is developing a 15,000 sq. ft. medical office building on a 1.2 acre site on Broad Street across from Methodist Mansfield Medical Center. The first floor of the building would be leased to Methodist Mansfield Medical Center for their new imaging center, which would be operated by CDI, one of the nations largest imaging center operators. Dr. Alexander would move his practice from his leased location at 1770 East Broad Street, Suite 102 in Mansfield to 2,500 sq. ft. on the second floor of the new building. This would leave an additional 4,000 sq. ft. of Class A medical office space for lease on the second floor.
The cost of the new building is projected to be $2,700,000 along with $1,900,000 worth of imaging equipment making the total capital investment approximately $4.6 million. All imaging equipment is subject to ad valorem tax. There will be a minimum of 8 new jobs created by the Methodist imaging center as they currently have no imaging staff.
Justification
This project will bring $4.6 million in capital investment and a minimum of 8 new professional jobs. It will return a minimum of $32,600 per year in ad valorem property tax. Staff has confirmed the Methodist imaging equipment will be subject to ad valorem tax.
Funding Source
4A
Prepared By
Scott Welmaker, Mansfield Economic Development Corporation 817-266-5890