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 LG Broad Cannon, LLC and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider Economic Development Agreement with LG Broad Cannon, LLC
Recommendation
Approve Economic Development Agreement with LG Broad Cannon, LLC
Description/History
Broad Street Marketplace is a proposed 130,000+ SF neighborhood retail center on 19.33 acres of land located at the northwest corner of Broad Street & Cannon Drive in Mansfield, TX. The overall project will be anchored by an 80,000+ SF Market Street grocery store, three multi-tenant retail buildings and five outparcels fronting Broad Street. Construction of Broad Street Marketplace is expected to be completed by mid- 2018.
Leon Capital, d/b/a LG Broad Cannon, LLC, is the property owner and developer of the $38,500,000 project. A portion of the capital expenditures will be used to cover offsite public infrastructure work relating to storm water drainage and roadway improvements on Broad Street & Cannon Drive. Leon Capital (LG Broad Cannon, LLC) requested assistance of $379,491 for the cost of these offsite public improvements.
At the July 11th MEDC Board meeting the MEDC Board recommended assistance not to exceed $355,000. The assistance, if approved, would be reimbursed to the developer on a per square foot basis as tenants receive a certificate of occupancy.
Justification
According to Impact Data Source, this project is anticipated to generate annual taxable sales of $41,262,500 resulting in $825,250 in total sales tax revenue. In addition, the project is expected to generate annual ad valorem property tax revenue of $397,529 for total annual revenue to the city of $1,222,509.
Funding Source
4A
Prepared By
Scott Welmaker, Director MEDC