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 REL Enterprise, LLC a Texas Limited Liability Corporation (REL) and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider the REL Enterprise Economic Development Agreement.
Recommendation
The MEDC Board has recommended reimbursement to REL Enterprise in an amount not to exceed $40,000 for eligible expenses associated with real property improvements to the industrial building located at 167 Sentry Drive.
Description/History
Linda Cooper (REL Enterprise LLC) owns an approximately 25K sq. ft. building located at 167 Sentry Drive. Ms. Cooper acquired the building in a divorce settlement. The tenant then declared bankruptcy and vacated the building. Ms. Cooper would like to put the building on the market for lease, however, it was built in 1979, is functionally obsolete, has unusable office space and is currently not in compliance with city code.
Ms. Cooper would like to make a minimum of $125,000 in improvements to the building to include adding a fire suppression system, demolishing the current office space, building new office space and bringing the entire property into compliance.
Ms. Cooper has limited financial resources and before expending the funds would like a commitment from MEDC for reimbursement of a portion of these items not to exceed $40,000 contingent upon signing a tenant to a minimum 5 year lease with at least 10 employees and a minimum business personal property investment of $250,000
The MEDC Board made the following recommendation:
• Reimburse up to $40,000 in eligible expenses associated with the basic fire suppression system at 167 Sentry Drive
• Contingent upon a tenant signing a minimum 5 year lease, with at least 10 employees and at least $250,000 in business personal property investment.
After learning of the Board’s offer, Ms. Cooper found a suitable tenant known as Mexus Plastics,LLC. They will require an upgrade to the fire suppression system that Ms. Cooper is installing and are on this same agenda seeking approval of the Board’s decision on August 4th to offer to reimburse Mexus for the actual cost of the fire suppression upgrade up to $20,000.
Justification
These improvements will bring the facility up to code which will allow the building to be leased to a new company
Funding Source
4A
Prepared By
Scott Welmaker, Mansfield Economic Development Corporation 817-266-5890