Mount Pleasant council approves Chapter 380/381 incentive for Anderson Town Crossing anchor tenant
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Summary
The council approved an economic development performance agreement with Anderson Town Crossing Partnership LLC under Texas Local Government Code chapters 380 and 381 to secure a national anchor tenant; staff outlined contract edits, reporting requirements and next steps including a PSA and confidential sales reporting.
The Mount Pleasant City Council approved an economic development incentive and performance agreement with Anderson Town Crossing Partnership LLC on Jan. 7, authorizing the city to enter the Chapter 380/381 agreements designed to secure an unnamed national Texas‑based retailer as the development’s anchor tenant. Staff recommended approval after a page‑by‑page review of recent edits to the draft agreement.
The staff presenter said the recitals were adjusted to reflect that Creative Destination Development LLC currently owns the property and that ownership will transfer to a developer upon execution of a purchase‑and‑sale agreement. The draft also replaced repetitive dollar amounts with a city “grant cap” reference where the document previously spelled out $22,000,700 in full. Staff noted changes to section numbering and clarified language in sections governing the term, basis for calculating the grant, and documentation the developer must provide.
Jason Claunch, a representative of Catalyst Commercial who said he has worked with the developer from the start, described the anchor as a Texas‑based national retailer and said, "They have over 300 stores and produce about $5,900,000,000 in revenue," arguing the tenant would be catalytic for the project and for Mount Pleasant’s retail base.
Council members pressed staff and the developer on ownership and who would build and manage the facility. Claunch said the project team includes a special‑purpose entity and partners named in the presentation who will take title under the PSA, operate the store and manage tenant leases. Staff and Claunch told council that after agreement approval the parties will proceed with a PSA and then other contractual steps.
On enforcement, staff explained that the draft no longer contains an explicit sales‑tax recapture ("clawback") clause. Instead, the agreement sets out notice and cure procedures and states that if required corrections are not made within the cure period the agreement may be declared null and void. Staff described this as the intended enforcement mechanism.
Staff recommended approval, a council member moved to adopt the incentive agreement, a second was recorded, and the council voted to approve the item. The motion passed and staff said the parties would next move to a PSA and subsequent implementation steps. The draft also would require the anchor tenant to report sales data to the city while maintaining confidentiality protections.
