Sugar Land Development Corporation OKs agreement to fund restoration in Imperial Historic District

SUGAR LAND, Texas — The Sugar Land Development Corporation on April 1 approved Resolution SLDC R 25-02 authorizing the corporation to enter into an agreement with the City of Sugar Land to support site improvements and historic-structure preservation in the Imperial Historic District.

The resolution lets the SLDC commit to paying up to 50% of the debt service on a certificate of obligation issued for the project, within a maximum certificate amount of $50 million. Devon Rodriguez, Director of Redevelopment, said the payment would come from a combination of the 4A and 4B sales-tax revenues and hotel-occupancy-tax capacity the corporations hold. "That's the gist of what the agreement is," Rodriguez said, calling the contract a legal arrangement that formalizes the corporations' share of debt service.

The action follows a city announcement on Feb. 14 that the city would pursue acquisition of property in the Imperial Historic District. Rodriguez told the board the project team is conducting due diligence and refining the scope and cost estimates. He said preservation of the Char House is a priority and described work needed to "mothball" the building so it is stabilized and protected from weather and water infiltration.

A 2022 assessment the staff reviewed estimated roughly $7.6 million for combined preservation work on the Char House; Rodriguez said that figure reflected stabilizing and preserving the shell rather than adaptive reuse. Preservation priorities cited include the roof, replacement or simulation of the windows consistent with historic-preservation tax-credit requirements, stabilization of a projecting structure referred to in the meeting as the "liquor gallery," brick restoration and upgrades to mechanical ventilation. Rodriguez said contingency amounts have been embedded across line items rather than shown as a separate line item.

Procedurally, the agreement before the SLDC pairs with related actions by the 4B corporation and the City Council. Rodriguez said the 4B board would hold a public hearing and consider a funding resolution and agreement; the City Council later the same day was scheduled to consider the funding resolution and both agreements. The sale of the certificate of obligation and the city's final acquisition of the property remain future steps.

Board discussion was brief. A member identified as Carol asked the meeting to clarify the name "liquor gallery"; staff responded that the term refers to a portion of the historic processing operation and described it as the projecting structure on the north side of the Char House. A motion and second were recorded; the chair called for the vote, members answered "aye," and the motion passed.

The agreement commits the SLDC to a percentage share of debt service rather than a fixed dollar amount, so the corporations' annual payment could vary as principal and interest schedules change. Rodriguez described the corporations' combined capacity (4A, 4B and hotel-occupancy-tax funds) as the source for the commitment and said current contractual obligations and program budgets were taken into account in assessing capacity.

City Council consideration of the certificate of obligation sale and property acquisition — and the 4B corporation's separate public hearing and funding vote — were described as necessary next steps before funds are expended or the acquisition closes. Within 15 days of the certificate closing, the agreement requires the city to provide the schedule of principal and interest payments to the corporations.

The SLDC vote on Resolution SLDC R 25-02 was recorded as passing by voice vote; no individual roll-call names were provided in the public transcript. The board adjourned immediately following the vote.