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 City of Mansfield and Methodist Mansfield Hospital and Authorizing its Execution by the Mayor and Providing and Effective Date
Requested Action
Approval of the Chapter 380 Economic Development Project Agreement with Methodist Mansfield Hospital.
Recommendation
Staff recommends that the council approve the agreement as presented.
Description/History
Representatives of the Board of Directors of Methodist Mansfield Hospital have approached the City with a proposal to initiate a significant expansion to the existing Methodist Mansfield Hospital campus. The expansion will occur in several phases and will extend over several years. The first phase calls for the construction of a new patient bed tower providing in excess of one hundred additional patient beds and supporting services. The new patient tower will be located immediately west of the existing facility and will be constructed in a manner to present a comparable appearance to the existing hospital structure. During the same initial expansion phase, the hospital will construct a physician's office building immediately south of the proposed new patient tower wing. The professional office building will provide approximately ninety thousand square feet of leaseable space for use by physicians and associated professionals in the health care industry. The construction of the new patient tower and the physician office building will generate a significant number of new jobs in the city and will serve as a catalyst to additional medical facility and service development in the immediate vicinity of the hospital.
Representatives of Methodist Mansfield Hospital have approached the city to seek certain assistance in completing the first phase of the facility expansion. The hospital has requested that the city close the current Hospital Drive which runs essentially east/west and lies south of the existing hospital facility. Hospital Drive in its current location would impede the ability of the hospital to construct certain facility improvements that are planned in the first phase expansion. Under the terms of the attached 380 Agreement, the city would agree to close Hospital Drive, in its current location, and release the roadway easement to the hospital at the time that the new patient tower construction was complete. The city would commit to build a new ease/west road section designated as S. Cannon Drive on the location reflected in the Exhibit made a portion of the 380 Agreement. The new road section would accommodate the east/west traffic flow that had previously been supported by Hospital Drive. The hospital will not be required to pay for the construction of S. Cannon Drive as the city will agree to construct this road section as a portion of the 380 Agreement. The city will be obligated to initiate construction of this road section at the time that it is closing and releasing the current Hospital Drive.
Under the terms of the attached Chapter 380 Economic Development Project Agreement, the City would also agree to make a grant to Methodist Mansfield Hospital that would cumulatively amount to a two hundred thousand dollar payment to assist the Hospital in meeting various permit and construction costs generated by the development of the physician's office building. The city will make the payment in an amount equivalent to the ad valorem taxes paid by the hospital on the physician's office building annually until a total of two hundred thousand dollars has been paid pursuant to the terms of the 380 Agreement. The city will be obligated to make annual payments in an amount equal to 100% of the taxes paid on the professional building after the tax payments are received by the city on the completed physician's office building. The city will make annual payments after the date that the ad valorem taxes are paid until such time as the total grant amount of two hundred thousand dollars has been paid pursuant to the terms of this Agreement.
Justification
The City of Mansfield and the Methodist Mansfield Hospital believe this Agreement is in the best interest of both entities.
Funding Source
General Fund
Prepared By
Allen Taylor, City Attorney