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El Campo CDC approves $50,000 site-improvement grant for planned convenience store; conditions attached
Summary
The City Development Corporation approved a site-improvement grant equal to 10% of eligible project costs (capped at $50,000) for a planned $3 million convenience-store and restaurant project at Jackson and Wharton; the CDC outlined conditions including certificate of occupancy within 18 months and a 24-month job/operation performance agreement with lien remedies for repayment.
The City Development Corporation (CDC) and El Campo City Council approved a site-improvement grant up to $50,000 (10% of eligible project costs) for a proposed $3,000,000 convenience-store and restaurant project at the southwest corner of Jackson and Wharton. The project contact was identified as Amin Ali.
CDC staff said the board approved the grant because the project is large, projected to create 3–5 full-time-equivalent jobs and represents significant private investment. Conditions explained to the council include a required certificate of occupancy within 18 months of board approval and a performance agreement that the business remain open for 24 consecutive months to retain full funds. CDC staff said that if the business closes before 24 months the CDC can seek repayment (staff indicated an example repayment of 50% if the business closes after one year) and that a lien would be the primary enforcement mechanism; staff noted banks may not subordinate to the CDC lien and said they would raise that question with the bank.
Councilmembers asked whether job-creation numbers were mandatory; staff responded those hiring expectations are part of the applicant’s performance agreement and that reimbursement is tied to that agreement. A motion to approve the site-improvement grant passed unanimously.
The council and CDC described the grant as reimbursement-based (paid upon receipt of required documentation, including certificate of occupancy), and staff said the project is anticipated to begin construction if financing closes. Staff also said they will include a 24-month open-business requirement in future CDC motions to provide clarity to applicants.
