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 360 Crossroads, L.P. and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consideration of an Economic Development and Performance Agreement with 360 Crossroads, LP (John T. Evans Company).
Recommendation
Approve the Economic Development and Performance Agreement with 360 Crossroads, LP (John T. Evans Company).
Description/History
John T. Evans Company, a major retail developer, is developing approximately 8 acres of retail at the SE corner of SH360 and Broad Street near Vernon Newsom Stadium. They plan to build approximately 35,000 sq. ft. of retail and restaurant space. There will be two multi-tenant buildings totaling approximately 17,000 sq. ft. plus pad sites.
Some of the unique tenants that are not currently in Mansfield include Jake’s Hamburgers, Slim Chickens and Denny’s. Slim Chickens and Denny’s will be freestanding buildings. Jake’s will occupy space in one of the multi-tenant buildings along with other tenants including Schlotzsky’s, Sport Clips, and Ideal Dental. Evans is targeting a restaurant and a medical user for the remaining two pads.
The anticipated cost of construction is approximately $5 million. The project is expected to generate approximately $12 million in annual sales which equates to $240,000 in total sales tax revenue.
John T. Evans has secured their debt, raised their equity financing and had their plans approved by the city. However, difficulty encountered with the cost of developing the site has caused the project to exceed their current funding capacity. Therefore, they are seeking assistance from MEDC.
The developer initially requested $600,000. On March 1st, the MEDC Board recommended reimbursement of actual cost of certain eligible infrastructure items not to exceed $215,000, to be paid at $6.14 per sq. ft. as the space is occupied.
Justification
The capital investment will result in new ad valorem and sales tax revenue and bring additional retail options to a key intersection of the city.
Funding Source
4A Funds
Prepared by
Scott Welmaker, Mansfield Economic Development Corporation, 817-266-5890