Title
Resolution - Consideration and Approval of a Resolution Approving a Tax Increment Reinvestment Zone Reimbursement & Chapter 380 Economic Development Agreement between the City of Mansfield, Texas, the Board of Directors of Reinvestment Zone Number One, City of Mansfield, and Chisolm Flats, LLC; Authorizing the City Manager to Execute Said Agreement; And Providing an Effective Date
Requested Action
That the City Council approve the agreement and authorize the City Manager to execute the agreement.
Recommendation
It is city staff’s recommendation that the City Council approve the agreement.
Description/History
This agreement is a performance agreement within the TIRZ #1 boundary, located on 54 acres at the northeast corner of HWY 287 and the Lone Star Rd intersection. The agreement provides for the reimbursement of infrastructure costs related to the master development of the entire tract. The developer will fund the upfront costs of design and installation of all infrastructure and then request reimbursement as the work is accepted by the City Engineer. The reimbursement of all infrastructure is capped at $9,000,000. Additionally, chapter 380 grant funds will be disbursed upon the completion and certificate of occupancy in the commercial zones for office, retail, or restaurant. The grant is funded by TIRZ revenues generated solely by the project. This grant is capped at $10,000,000 and is only through the duration of the TIRZ.
Justification
This agreement is necessary to accelerate commercial construction by incentivizing the advanced placement of infrastructure rather than waiting until the market can support parcel by parcel development over a much longer period of time. The incentives aim to elevate the types of commercial users, as provided in the zoning ordinance and agreement.
Funding Source
TIRZ #1
Prepared By
Jason Moore, Executive Director of Economic Development
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