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Council approves development deal and related pipeline and services agreements for Hawthorne Machinery site in Eagles Landing
Summary
The council approved a package to support a Hawthorne Machinery facility in Eagles Landing: a pipeline license with BNSF, a PSA amendment allocating pipeline permitting fees to the developer, and a development agreement to sell ~5.51 acres at $100,000/acre with performance covenants including a $4.325 million minimum capital investment and a phased requirement of at least 10 full-time equivalents.
The City Council approved a series of linked actions to allow a Hawthorne Machinery facility (Project CAT) to locate on roughly 5.5 acres in Eagles Landing Business Park.
Staff described a pipeline license agreement required for a water line to bore under Burlington Northern Santa Fe railroad property as part of the Libertas Nature Creek Reserve/Libertas development. After discussion, council approved the pipeline license agreement with BNSF.
Council then approved a first amendment to the professional services agreement (PSA) with Libertas Decatur LP to specifically include the work and fees associated with the BNSF pipeline lease, with staff noting the amendment serves as a contractual backstop ensuring the developer covers permitting costs.
Decatur Economic Development Corporation (EDC) Executive Director Kevin Holzbaugh presented the development package: a performance agreement through Dec. 31, 2031 with developer covenants including a minimum capital expenditure of $4,325,000 by July 1, 2027 and a cumulative minimum of 10 full-time-equivalent jobs during the agreement term. The EDC will convey approximately 5.51 acres at a discounted sale price of $100,000 per acre; Holzbaugh calculated the incentive value (the delta from market rate) at roughly $169,000. Hawthorne's CFO Brian Verhoeven (joining virtually) described the company's operations and national territory; developer Gary Pickens (United Property Southwest) presented site plans for a 24,000-square-foot, grade-level building with two truck aprons and parking configuration.
Council moved and approved a development agreement between the Decatur EDC and Hawthorne Machinery (Project CAT), with councilmembers congratulating the developer and thanking Kevin Holzbaugh for his EDC service. No financial incentives beyond the discounted land sale were described in greater detail at the meeting; the performance agreement includes default and reconveyance language if covenants are not met.
The approvals were procedural and required for the developer to proceed with permitting and site work; council also acknowledged staff, the EDC and developer coordination that produced the proposal.
Next steps discussed included completing a survey to finalize the 5.51-acre parcel description and proceeding with the professional and permitting steps now that council approved the agreements.
