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HomeMy Public PortalAboutResolution No. 198-03 04-15-2003 198-03 • RESOLUTION NO. A RESOLUTION APPROVING A DEVELOPER AGREEMENT PURSUANT TO CHAPTER 380 OF THE TEXAS LOCAL GOVERNMENT CODE WITH BARCLAY/TEXAS HOLDINGS III, LP, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Barclay/Texas Holdings III, LP owns or has contracts to purchase the Premises and intends to construct or cause to be constructed the Improvements; and WHEREAS, Barclay/Texas Holdings III, LP has advised the City and the Richland Hills Development Corporation that a contributing factor that would induce Barclay/Texas Holdings III, LP to construct the Improvements is an agreement by the City and the Richland Hills Development Corporation to provide economic development grants to Barclay/Texas Holdings III, LP to defray a portion of the cost of demolition of the existing buildings on the Premises and a portion of the cost of acquisition of the Premises; and WHEREAS, the City and the Richland Hills Development Corporation recognize that BarclayiTexas Holdings III, LP has incurred or will incur greater costs to acquire the Premises and demolish the existing buildings currently located on the Prcn~i_ses because the project involves redevelopment of a location with existing stn:ctures; and WHEREAS, the City is authorized by Chapter 380 of the Texas Local Government Code; to provide economic development grants to promote local economic development and to stimulate business and commercial activity to the City; and WHEREAS, the City has adopted an economic development program pursuant to Chapter 380 for the purpose of promoting economic development; and WHEREAS, the Richland Hills Development Corporation is authorized by Article 5190.6 to expend funds in furtherance of an economic development project, and the Board of Directors of the Richland Hills Development Corporation has held a public hearing and, following that public hearing, determined that the project which is the subject of this Agreement, and specifically, the demolition of the existing buildings currently existing on the Premises, qualifies as an appropriate project for the expenditure of economic development funds of the Richland Hills Development Corporation; WHEREAS, the City and the Richland. Hills Development Corporation have determined that substantial economic benefit and the creation of new opportunities of employment will accrue to the City as a result of BarclaylTexas Holdings III, LP's development and operation of the Improvements, and that this project will increase the taxable value of the Property and directly and indirectly result in creation of additional jobs throughout the City, and that the value of the benefits • obtained by the City from the project will outweigh the amount of funds the City is to provide as grants under this Agreement ,and • WHEREAS, the City and the Richland Hills Development Corporation desire to enter into a proposed economic development agreement with Barclay/Texas Holdings III, LP in order promote local commercial economic development and to stimulate business and commercial activity and expand the employment base of the City to the long term interest and benefit of the City and its citizens and residents in accordance with Chapter 380 of the Texas Local Government Code and Texas Revised Civil Statutes Article 5190.6; and WHEREAS, the City Council finds the contemplated use of the Premises, the contemplated Improvements to the Premises, and the other terms of this Agreement, are consistent with the Program and all applicable law; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS, TEXAS: SECTION 1. Consideration of Economic Development Agreement with Barclay/Texas Holdings III, LP. The City Council has considered the request ofBarclay/Texas Holdings III, LP for incentives under the above-created program created under Chapter 380 of the Texas Local Government Code to assist in the development of a strip shopping center with a major grocery chain as the anchor • tenant, said development being more fully described in the Agreement attached hereto, and has determined that the request meets the criteria for the program. The City Council has considered: (1) the amount of sales tax revenues and ad valor em tax revenue the City expects to be generated by the operation of the commercial enterprise; and (2) the extent of economic enhancement and stimulation that the City will derive from operation of the commercial enterprise's business; and (3) the number and quality of new employment opportunities which the City expects will result, directly and indirectly, from the operation of the commercial enterprise; SECTION 2. Findings Regarding Proposed Economic Development Agreement with Barclay/Texas Holdings. After consideration of the information provided by Barclay/Texas Holdings III, LP and compiled by City staff, the City Council makes the following findings: (1) The project will generate an estimated $111,477.00 in annual General Fund sales and property taxes for the City and an estimated $41,132.00 of Richland Hills Development Corporation sales tax revenue, for an estimated total of $152,609.00 in additional tax • RESOLUTION APPROVING ECONOMIC DEVELOPMENT AGREEMENT WITH BARCLAY/TEXAS HOLDINGS III, LP W.\Richland Hills\Economic Development\Resolution approviing economic development agreement with Barclaywpd Page ? • revenue; (2) When the site is fully developed with in-line retail, fueling facility and pad site development in addition to the grocery store, the City will derive more than $200,000.00 annually from the project; (3) The above estimate of $111,477.00 in increased General Fund sales tax and property tax revenue derived from the grocery store only is equal to the amount of revenue that would be generated by an 11.66 percent ad valorem tax increase. Therefore, the City will be able to provide needed services without the significant property tax increase which might otherwise be needed; (4) The project will also produce employment opportunities. It is estimated that when fully developed, fifty (50) persons will be employed on the site, and the project should spur additional business investment along Grapevine Highway and Rufe Snow Drive, generating additional sales and property tax revenue and employment opportunities. (5) The proj ect will heighten the image of the City and can be used to market to other businesses regarding the advantages of locating in Richland Hills. (6) The information supplied the City by Barclay/Texas Venture Capital, LLC is sufficient to meet the needs of the City in reviewing the request, and to the extent, if any, that the request does not include all elements specified in the resolution adopting the City's Chapter 380 economic development program, the City Council has determined that it is appropriate to waive any such variances; SECTION 3. Authorization for Execution of Proposed Economic Development Agreement with Barclay/TexasHoldings III, LP. Based on the above-referenced findings, the City Council approves the attached agreement, and authorizes James Quin, the City Manager to execute the Agreement on behalf of the City. SECTION 4. Effective Date This resolution shall take effect immediately from and after its adoption, and the agreement approved herein will be effective upon full execution by all the parties, and it is accordingly so resolved. • RESOLUTION APPROVING ECONOMIC DEVELOPMENT AGREEMENT WITH BARCLAY/TEXAS HOLDINGS III, LP W:\Richland Hills\Economic Development\Resolution approviing economic development agreement with Barclay.wpd Page 3 Passed and approved this day of , 2003. • CITY OF RICHLAND HILLS, TEXAS 9 L/ The Ho rable Nelda Stroder, Mayor ATTEST: Terri Willis, City Secretary APPROVE TO FORM AND LEGALITY: ~T ' Tim G. Sralla, City Attorney • • RESOLUTION APPROVING ECONOMIC DEVELOPMENT AGREEMENT WITH BARCLAY/TEXAS HOLDINGS LP W:\Richland Hills\Economic Development\Resolution approviing economic development agreement with Barclaywpd Page 4