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Developers pitch HEXA co‑working and tech incubator for vacant DeSoto buildings; board to review lease/incentive details
Summary
HEXA Development proposed converting two city‑owned, vacant buildings into a co‑working/tech incubator hub with a model to use rent receipts to seed a revolving fund to subsidize start‑ups; the board asked for detailed lease, improvement and incentive terms before moving forward.
Developers from HEXA Development presented a proposal to convert two city‑owned vacant buildings on the Hampton Road corridor into a co‑working and tech incubator hub, pitching both a revenue model for the city and a subsidized pathway for start‑ups and small tech firms.
“We think that as a smart man once said, genius is equally distributed, but opportunity is not,” said Xavier Egan, a management partner with HEXA Development, describing the company’s approach of combining co‑working inventory with a venture studio and accelerator partnerships.
EDC staff said the buildings are currently vacant, need varying levels of repair, and that the proposed model would have HEXA act as master tenant and operator; the city would receive rent and the EDC could reinvest a portion of that rent in a revolving fund to underwrite early‑stage local firms. Matt Carlson said the model could allow the EDC to “buy back the space” for early‑stage firms by underwriting rents for a limited period while companies grow.
Board members asked for clarifying information before committing: which party would pay for structural building repairs versus tenant fit‑out; sample lease rates for hot desks, dedicated desks and private offices; the length of time the EDC would subsidize start‑ups; and a plan for what happens when incubated companies outgrow the facility.
HEXA said its Richardson facility opened in April 2020 and has remained largely occupied; in DeSoto the firm proposed a low/medium/high set of investment options to retrofit the smaller city buildings. Staff said they would return with a final proposal that enumerates lease terms, improvement responsibilities, projected rental revenue and any requested incentives.
Board members praised the concept as a way to create affordable executive and entrepreneurial space and to cultivate local tech and aerospace firms, but they emphasized the need for full financial terms and a draft operating agreement before approving incentives or lease arrangements.
