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Mansfield council approves Chapter 380 framework to pursue Costco at Lone Star and US‑287
Summary
The Mansfield City Council voted 6-0 to approve a Chapter 380 agreement framework with Costco that would support a roughly 150,000-square-foot store on a 21‑acre portion of a 46‑acre site; rezoning and property acquisition remain required next steps.
The Mansfield City Council on May 12 approved a Chapter 380 performance‑based incentive framework that could pave the way for a 150,000‑square‑foot Costco at the northwest corner of Lone Star Road and U.S. 287.
City planner Jason Moore told the council the agreement would require a minimum $25 million capital investment by the developer and anticipates roughly $40 million in annual sales. The proposal includes an initial infrastructure grant to fund about $1.5 million in street and utility improvements to make the site developable and would return 50% of the city’s 1% general fund sales‑tax receipts tied to the store as a performance incentive, Moore said.
Moore said the Chapter 380 is the first step; it does not change the property’s zoning. The project proponents will still need a zoning change to develop the full 46‑acre tract for commercial use and must complete land purchase and site improvements before incentives are paid. Council members asked whether multifamily units and townhomes currently shown on the tract would be removed; staff said eliminating the previously contemplated 275 multifamily units and 60 townhomes on the parcel is the intent if the project proceeds through zoning and land‑use approvals.
Council members also asked about property‑tax impacts. Moore estimated the city’s share of property taxes from a store this size at about $100,000 per year (a combined estimate of real and personal property taxes typical for stores of similar size), and said the incentive is structured as a share of sales tax rather than a property‑tax abatement.
Mayor Michael Evans opened the item for public comment and recorded a group of supporters on the record. After brief questions and no formal amendments, the council voted 6‑0 to approve the Chapter 380 agreement framework.
Next steps outlined by staff include: (1) processing a zoning change through Planning and Zoning and a future council hearing; (2) finalizing infrastructure plans and grant details; and (3) completing purchase agreements for the portion of the tract intended for the store. The council did not approve zoning or land purchase at this meeting.
