File #: 23-5646    Version: 1 Name: Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a Chapter 380 Agreement and Contract of Sale Between the City of Mansfield, Texas, and HMO Real Estate 40, LLC; Finding that the Meeting at which this Resolution is P
Type: Resolution Status: Passed
File created: 10/1/2023 In control: City Council
On agenda: 10/9/2023 Final action: 10/9/2023
Title: Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a Chapter 380 Agreement and Contract of Sale Between the City of Mansfield, Texas, and HMO Real Estate 40, LLC; 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, to Execute Said Agreements; and Declaring an Effective Date (General Fund)
Sponsors: Jason Moore
Attachments: 1. Resolution, 2. Exhibit A - 380 Agreement, 3. Exhibit B - Contract of Sale

Title

Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a Chapter 380 Agreement and Contract of Sale Between the City of Mansfield, Texas, and HMO Real Estate 40, LLC; 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, to Execute Said Agreements; and Declaring an Effective Date (General Fund)

 

 

Requested Action

Consider Approving the Resolution

 

Recommendation

To Approve the Resolution

 

Description/History

Staff has been working with the owners of Texas Tire, located at 100 S Main Street, in downtown Mansfield, on the purchase of their property. As such, they are willing to sell but want to relocate and be open before moving out of the existing facility. The Contract of Sale provides a purchase price for the property downtown in an amount equal to $1.1 million, or its appraised value, and the Economic Development Agreement provides a 380 cash grant in the amount of $800,000 to go toward the new facility on Debbie Lane.

 

The contract contemplates a 6 month timeline to close on the property from the effective date. It is anticipated that the city could close much sooner depending on construction of Texas Tire's new facility.

 

Justification

The city hired Archer Appraisal to perform an appraisal of the property at 100 S Main Street at it came in at $1.1 million due to the revenue being generated at the site. In order to maintain jobs and sales tax, the city is working with the owners to establish a location on Debbie Lane to ensure continuity of their workforce and sales tax generation.

 

Funding Source

General Fund

 

Prepared By

Jason Moore, Executive Director of Economic Development