Title
Resolution - A Resolution of the City Council of the City of Mansfield, Texas, Authorizing the City Manager or Designee to Negotiate, Finalize and Execute a Chapter 380 Agreement and Contract of Sale Between the City of Mansfield, Texas, and HMO Real Estate 40, LLC for the Property Located at 100 S Main, Mansfield, Texas; 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 $1,780,000 to go toward the new facility on Debbie Lane.
The contract contemplates a 8 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