Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Approving a First Amendment to the Economic Development Agreement between the City of Mansfield, Texas, the Mansfield Economic Development Corporation, the Board of Directors of Reinvestment Zone Number One in the City of Mansfield, Texas, and Admiral Legacy, 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, The MEDC Board President, and Chairman of TIRZ #1 Board, to Execute Said Agreement; And Declaring an Effective Date (TIRZ #1)
Requested Action
To Consider Approving the Resolution
Recommendation
To Approve the Resolution
Description/History
An Economic Development Agreement was approved by City Council on January 9, 2023 with Admiral Legacy as part of a master planned 17 acre tract, consisting of Class-A office, vertical mixed-use residential and retail, and parking structures. While the original agreement contemplated the gap associated with the 150,000 square-foot office building for phase 1, the mixed-use residential/retail was not included or contemplated at that time. With changes in the market including capital availability and interest rates, a financial gap of $6.5 million occurs with the next phases of the project.
Staff worked with the developer and their lenders to identify a solution to manage the gap. As such, this First Amendment includes an annual reimbursement of the property taxes generated within their development to the TIRZ district, for a period not to exceed fifteen years, or a net-present value of $6.5 million, using a 14% discount rate.
Only the funds that are produced by the development itself will be considered for the annual reimbursement during the Term.
Justification
The reimbursement is necessary to move the mixed-use portions of the project forward.
Funding Source
TIRZ #1
Prepared By
Jason Moore, Executive Director of Econom...
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