Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a Reinstatement and First Amendment to Contract of Sale and an Amendment to the TIRZ Development Agreement Between the City of Mansfield, Texas, The Mansfield Economic Development Corporation, The Board of Directors of Reinvestment Zone Number Two, City of Mansfield, and HGRC Mansfield, LP; Finding that the Meeting at which this Resolution is Passed is Open to the Public as Required by Law; Authorizing the City Manager or his Designee, The MEDC Board President, and Chairman of TIRZ #2 Board, to Execute Said Agreement; And Declaring an Effective Date (General Fund/MEDC/TIRZ #2)
Requested Action
To Consider the Resolution
Recommendation
To Approve the Resolution
Description/History
This amendment provides changes to the structure of the original contract of sale with Hoque Global for the approximate four acres at Smith and Elm Street. The amended terms include the following:
· Developer to purchase the 4 acres for $2,000,000 and close by December 30, 2023
· Commence demolition by October 30, 2023
· Commence vertical construction by December 30, 2024
o This allows for adequate time to secure senior debt on the project
· City to grant $2,000,000 to HG upon vertical construction commencing
· Deferring Development Fees to be paid back by TIRZ each year prior to developer reimbursements
· MEDC to grant $350,000/year for 10 years to control/operate the 10,500 SQ FT space
· Maintain the developer TIRZ reimbursement until the earlier of the original cap being met or the expiration of the downtown TIRZ
· The property will be secured by a reversion clause in the deed if vertical construction does not commence by December 30, 2024
Justification
Due to interest rates, the yield on cost originally modeled for this development significantly decreased, thus eliminating senior debt options. With the restructure of the agreement to allow for the purchase of the site for $...
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