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Mesquite council approves Towne East plan, $25M redevelopment and 10‑year sales‑tax incentive for former Sears
Summary
The city approved a plan to convert the vacant Sears at Towne East Mall into a mixed retail, entertainment and potential hotel complex and a Chapter 380 agreement that offers a 10‑year, 1‑cent sales‑tax performance incentive if the project meets investment and sales thresholds.
Mesquite City Council unanimously approved zoning changes and a Chapter 380 economic development agreement that clear the way for redevelopment of the former Sears building at Towne East Mall.
Adam Bailey, director of planning and development services, told council the plan would convert the roughly 18‑acre Sears site into Parcel 1 (the redeveloped Sears building) and seven outparcels, allowing a mix of entertainment, retail, restaurants, a conference center and an eventual hotel under a conditional use permit. Bailey said the PD includes development standards for landscaping, signage and shared parking and reduces some retail parking ratios to encourage walkable, parcel-to-parcel access.
The applicant, Steve Meyer of SRB Mesquite LLC, and developer‑partner 4 Rivers Capital described weeks of negotiations with national brands and the need to rework utilities and the internal ring road. Meyer said the team had been working “for months” with staff and that the owner hired a firm in February to accelerate the project. Developer representative Ryan Sloma said, “I think we have several [leases] that we can have a lease inked up before the end of the month.”
Separately, Economic Development Director Kim Buttram presented a Chapter 380 agreement conditioned on performance: the developer must reach a minimum of $25 million in qualified capital expenditures (city staff used a conservative $20 million valuation for early-year estimates) and Main Event must meet phased sales targets. Buttram summarized the incentive: “We are offering a 10‑year 1¢ sales tax incentive,” paid only if contractual investment and annual taxable‑sales minimums are achieved. Under the agreement the city’s maximum estimated payout is $2 million over ten years; staff estimated Mesquite would still net a substantial revenue increase compared with current receipts.
Key contract dates and thresholds included a Main Event lease and initial exterior work completed by Dec. 31, 2026; $25 million in qualified capital investment by July 1, 2027; and tenant sales minimums that scale to $20 million annually in years three through ten for the anchor operations. Buttram said the developer must meet annual taxable‑sales targets to receive incentive payments and has a cure period if a threshold is missed.
Council members emphasized the project’s potential economic impact. Mayor Pro Tem (speaker 8) said the plan could be “a catalyst” for the entire Towne East corridor; Councilmember Green (speaker 6) called the proposal “well thought out.” The motion to approve both the PD (item 20) and the Chapter 380 agreement (item 21) passed unanimously, 7–0.
What’s next: staff will finalize contract documents and return to the council with any final deal points or required amendments; several conditional subsequent approvals (a hotel CUP and building permits) would be required before construction of vertical components and the parking structure.
