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 Carlos Coll, and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider the Carlos Coll Economic Development Agreement.
Recommendation
The MEDC Board has recommended reimbursement not to exceed $225,000 for eligible expenses associated with on-site improvements, plus $50,000 for a left turn lane from Heritage Parkway to the site, both for Phase 1 of the project.
Description/History
The applicant, Carlos Coll, acquired this parcel at 1441 Heritage Parkway from MEDC in 2006. He built UAC on about half of the property. The remainder of the site has drainage issues, making development costly and difficult. However, Mr. Coll has proposed to construct 2 buildings in Phase I of a speculative light industrial development on the front part of this site.
Phase I of the proposed project would involve the construction of 2 buildings, a 22,900 sf ($1,675,626) and a 35,850 sf ($2,243,527) product adding a total of 57,750 sf and $3,919,153 in taxable value. The first phase will require construction of a left turn lane on Heritage. The applicant has stated that he will seek additional assistance at a future date to construct Phase II with two or three additional buildings.
At the December 2014 MEDC Board meeting, the MEDC board recommended $225,000 for direct costs associated with the development of 2 new buildings, payable 50% for each of the buildings completed, plus up to $50,000 for the construction of the off-site left turn lane required for this project.
Until a tenant is secured for the buildings it is not possible to calculate jobs, sales tax or business personal property on the accompanying worksheet. However, it is certain that Mr. Coll's investment will fill with tenants fairly quickly and that the recovery of the MEDC grant in sales and property tax will occur much sooner than indicated on the worksheet.
Justification
MEDC continues to miss many opportunities to recruit new light industry to Mansfield due to a shortage of available space. This project would allow MEDC to be in a better position to recruit new business to town.
Funding Source
4A
Prepared By
Scott Welmaker
Mansfield Economic Development Corporation 817-266-5890