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Council narrowly authorizes loan for Town Center Building 3; vote 3-2
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Summary
The Kennedale City Council approved authorization related to financing for Building 3 in Town Center under an existing 380 agreement, voting 3-2 after questions about parking, vacancies and revenue.
The Kennedale City Council voted 3-2 March 7 to authorize an agreement tied to new construction at Town Center, allowing the developer to proceed with financing for Building 3 under the city/EDC 380 agreement.
Staff explained the request as concept approval to permit the developer — identified in staff remarks as Craig Hughes — to take a loan against EDC-held land under the Chapter 380-style contract that governs Town Center development. Council was told the building plan is similar in footprint and use to the recently constructed Dollar General building; staff said permit fees and customary inspections still apply and that the developer would fund construction.
Council asked how much the city or EDC has invested to date and whether the site’s parking and vacancy history could pose a risk; staff said EDC land ownership and the 380 agreement structure limit direct city capital commitment and that revenue from existing Town Center leases is roughly $20,000 a month from Building 1. Councilmembers also pressed about tenant commitments; staff said prospective tenants had been discussed but the developer did not have a signed restaurant tenant at the time of the meeting.
After discussion, councilmember motioned to approve the authorization for Building 3; the motion passed on a 3-2 vote. Staff indicated the authorization allows the developer to proceed under the contract and that land sale provisions in the 380 agreement remain in effect.
