Council approves sale of 34.07 acres to developer; additional 12.43‑acre parcel tabled for deed‑restriction review

The Mesquite City Council voted on Aug. 12 to approve a purchase and sale agreement with Mesquite Land Partners LLC for 34.07 acres of city‑owned land off John Deere Drive, moving the project into a 90‑day due‑diligence period. Council members voted separately to table the companion transaction for a 12.43‑acre parcel until deed restrictions and economic‑development tie‑ins are clarified. Why it matters: The sale is tied to the city’s residential economic‑development matrix and the developer’s proposal includes a land‑price incentive in exchange for an affordable‑housing commitment the developer says will provide a minimum of 10% of units with deed restrictions to households at or below 80% area median income. Key terms in the draft agreements: City staff said three appraisals were obtained for each parcel and that the buyer agreed to split appraisal costs. For the 12.43‑acre tract staff presented an offer based on the average of two appraisals ($368,845 as stated in the meeting). For the 34.07‑acre tract staff said the buyer will receive a 25% land‑price incentive tied to a requirement that at least 10% of the project be deed‑restricted affordable housing for a minimum of 10 years; the contract as presented also included a 90‑day escrow and a 3% broker commission. Council discussion and concerns: Council members and the city attorney asked staff and the developer to tighten the way the smaller parcel would be handled if the city offered a discount. City attorney comments flagged that the city charter allows selling public land for less than fair‑market value for economic development, but that those transactions should be supported by deed restrictions or development commitments so the city can demonstrate what it receives in exchange for the discount. Staff commitments and road improvements: City staff said the developer will bring utilities to the site and the city will complete curb, gutter, sidewalk and asphalt on the west side of John Deere Drive up to the property line; staff estimated that the city’s work on that west side would cost roughly $200,000–$250,000 and said regional transportation (RTC) funds would be used rather than the general fund. Votes and next steps: The council approved the 34.07‑acre purchase and sale agreement (motion by Councilman Juanas; second by Councilwoman Gallo; motion passed). The council voted to table the 12.43‑acre agreement so staff and the buyer could produce a deed‑restriction addendum that ties any discount to measurable development commitments (motion to table by Councilman Wanless; second by Councilwoman Fielding; motion passed). The developer said its due‑diligence period will be used to finalize the addendum and any required development guarantees. What the record does not show: The transcript does not include a finalized sales price for the 34.07‑acre parcel in a clear numeric form in the public record at the meeting; staff said appraisal averages informed the offers and said the parties will negotiate deed restrictions and commission terms during the due‑diligence period. Ending: The 34‑acre agreement proceeded to contract, while the smaller parcel was sent back to staff and the developer to document the economic‑development tie‑ins the city attorney recommended; the developer and staff said they will return with a revised addendum during the due‑diligence period for council approval.