Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Office Development topic
No spam. Unsubscribe anytime.
MEDC approves Third Amendment for 17‑acre office project, lowers grants and raises master‑lease exposure
Summary
The Mansfield Economic Development Corporation board on Sept. 9 approved a Third Amendment to the agreement with Admiral Legacy Investments, LLC that reduces near‑term cash grants, eliminates a prior TERS reimbursement, increases the EDC master‑lease exposure to 70% and extends a rental backstop to 20 years; the amendment includes deadlines that could forgive a $3,000,000 land sale if $100,000,000 of taxable value is delivered by 2027.
The Mansfield Economic Development Corporation Board of Directors on Sept. 9 voted 5–0 to approve a Third Amendment to its economic development agreement with Admiral Legacy Investments, LLC, changing financial terms and timelines for a planned 17‑acre mixed‑use development intended to include Class A office space.
Staff told the board the amendment reduces several upfront cash grants, caps ongoing payments at $3,000,000 and removes a prior TERS reimbursement agreement that had allowed TERS revenues to flow back to the developer. Staff said the third amendment increases the EDC's master‑lease exposure from 50% to 70% for a 106,000‑square‑foot calculation and corrected a line on the screen: the master lease example uses $26 per square foot (not $28), staff said.
"We are being asked to increase the master lease from 50% to 70%," the Staff member said, adding that the rental backstop for phase 1 would extend from 10 years to 20 years to stabilize cash flow assumptions for lenders and equity partners. Staff described a conservative TERS revenue model (2.5% appreciation) and noted that construction underwriting would generally require rents near $36 per square foot; the EDC proposal bridges part of that gap in early years with a rental guarantee that declines over time.
Financially, staff said the land sale price is $3,000,000 but that the price would be forgiven if the development delivers $100,000,000 of taxable value by 2027; otherwise the EDC would receive the $3,000,000 proceeds. Staff also described a schedule that asks the developer to begin construction by the end of October (in the near term) and to complete the office shell by Dec. 31, 2027, with an additional eight months allowed for an initial 15,000‑square‑foot tenant fit‑out.
Board members approved the Third Amendment after staff presentation; no public comments or opposing votes were recorded in the transcript. Next steps include monitoring developer performance against the construction and taxable‑value thresholds and administering TERS revenues consistent with the amended agreement.
