Balch Springs EDC approves amended Alexander Village development agreement with lender repurchase provision

The Balch Springs Industrial and Economic Development Corporation on May 19 approved an amended economic development and performance agreement for the Alexander Village mixed‑use project, a planned development on about 14 acres owned by the EDC that will include restaurants, retail, family‑oriented entertainment and about 200 market‑rate apartment units.

The board approved the amendment in a recorded vote (David Ruffino: yes; Gwendolyn Gardner: yes; Brandon Jackson: yes). The motion passed subject to adding language giving the EDC a right of repurchase or right of first refusal to be negotiated with the lender and drafted by the EDC attorney.

The amendment revises the project schedule and incentive payments, reduces some building incentives and confirms a financing arrangement that allows the developer to grant a first lien on the commercial or residential property to a lending institution. EDC staff said the changes are intended to move the project forward while addressing delays in securing a collector road and permits required for access to I‑20.

EDC staff summarized the proposal as a public‑private partnership requiring a $50 million development from the developer and a collector road connecting Belt Line Road to I‑20. Staff said the collector road is now estimated to cost $3.4 million. Under the amendment, the developer will contribute up to $2.0 million toward the road; the EDC Type A would contribute $1.5 million split across two fiscal years (including $900,000 already budgeted this year and $300,000 from an incentives line), and EDC Type B would contribute $400,000. Staff said previously agreed incentives for commercial users were reduced: the four restaurants set aside was reduced from $500,000 to $400,000 and the family entertainment allocation was reduced from $500,000 to $400,000, lowering the total previously projected incentive pool to $1.3 million.

Developer representative Chuck Branch told the board that funds the EDC contributes would be held in escrow and used to pay construction financing first, and that the developer is providing personal guarantees and other lender assurances. "All financing that y'all contribute to us is going to go into an escrow account, so that'll pay it off first," Branch said, describing the bank’s controls over disbursements.

Board members pressed for protections if a lender foreclosed. A board member said they were not comfortable releasing the EDC’s first lien position without contractual protections; the motion that passed included direction to add a repurchase/right‑of‑first‑refusal provision to the lien language, subject to agreement with the lender and attorney review. EDC staff said the attorney will draft the specific language and that the provision will be negotiated with the lender.

Staff presented projected fiscal impacts after buildout: approximately $240,000 in annual property tax revenue and $400,000 in annual sales tax revenue (described by staff as conservative estimates). Staff also said the developer’s estimated qualified expenditures for the project are about $14 million (construction‑related costs) and that the full development would meet objectives in the city’s strategic and comprehensive plans.

Next steps given by staff: the amended agreement will proceed through EDC and city council review, with possible City Council action on June 9 or June 23, followed by site plan and plat reviews through Planning & Zoning. Staff said platting and final approvals are required before vertical construction can begin.

Board members said they support moving the project forward but emphasized preserving EDC protections in the event of default or foreclosure and asked staff and counsel to return with the agreed lien/repurchase language.