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 Lonejack, LLC and Authorizing its Execution by the President of the MEDC; and Providing an Effective Date
Requested Action
Consider request for assistance from Lonejack, LLC (Sellmark)
Recommendation
At the May 1 MEDC Board meeting, the board recommended the sale of lot 4 for the 2017 appraised value of $809,600 and to reimburse that amount to Sellmark on a per square foot basis as certificates of occupancy are obtained on 200,000 square feet of new construction.
Description/History
The MEDC acquired “lots 1-4” on Heritage Parkway at the corner of Mitchell Dr. in May 2004 from the City.
In 2010, MEDC entered into an Economic Development and Performance Agreement with Lonejack, LLC (a/k/a Sellmark) to assist with construction and subsequent expansion of their facility located at 2201 Heritage Pkwy (lots 2 and 3). This agreement required Sellmark to begin construction of additional square footage on lot 3 by June 30, 2018 and obtain a certificate of occupancy by December 31, 2019. Due to unforeseen circumstances, a new agreement has been prepared.
MEDC still owns lots 1 (hard corner on Heritage and Mitchell) and 4. Lot 4 poses some development challenges with proximity to the railroad track, gas well, TRWD pipeline and floodplain/floodway issues on the southern portion of the lot. Sellmark is currently located on lot 2 and owns lot 3. It is a logical strategy for Sellmark to acquire lot 4 in order to better develop that portion of the industrial community and add lot 4 to the tax rolls.
By adding 200,000 square feet of tilt wall industrial buildings, $13 million of ad valorem tax value will be added to the tax rolls resulting in additional annual tax revenue of $92,300. Currently, the land value is not taxable while owned by MEDC. If ...
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