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Staff outlines grocery‑recruitment strategy, active projects and MDD finances

City of Josephine Municipal Development District · April 28, 2026

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Summary

Staff and guest presenters told the new Josephine MDD how sales tax revenues may be used, reviewed active development projects and market studies, and reported the MDD holds $194,920 with about $17,700 collected monthly; staff described free academic partnerships to study grocery trade areas and other recruitment work.

City staff and a guest speaker provided an orientation on what the municipal development district can fund, what drives retail site selection and which projects are under active review.

Guest Justin Wise (speaker 9), who said he formerly served as assistant city manager in Fate and now teaches public administration, explained the MDD’s statutory role under the Texas Local Government Code and offered examples of multi‑year grocery‑anchored projects. “You’re gonna have a lot of tire kickers,” Wise said, describing the long timeline and the need to present strong demographic and permit data to site selectors. He emphasized that the district should rely on staff as the board’s point of contact and that the board’s role is executive/policy level rather than day‑to‑day recruitment.

City attorney Sarah Ross (speaker 3) followed with legal guidance: project funds must be kept in a project development fund and may be split into subaccounts; executive sessions are available for confidential negotiations but leaks can damage deals; and officials must file written affidavits and recuse themselves when a substantial interest exists. “It is my legal advice that if you have a substantial interest … you not participate in any of the discussions,” Ross said.

Finance staff (speaker 12) reported the MDD’s current balance: the segregated project account holds $194,920 and collections average roughly $17,700 per month. The finance speaker said those receipts are remitted by the state comptroller and that the board could direct staff to invest in interest‑bearing accounts as the balance grows.

Planning staff (Miguel Klein, speaker 10) summarized active projects: a Valero strip center under extended review (drainage design challenges), a retail strip on FM 1777 with driveway and drainage issues, an Exxon/Sonic site moving toward preconstruction with an estimated 6–10 month timeline to opening, and rezoning/plan development work at 520 Milton Street. Klein also described two free academic projects with UT Dallas to produce a market analysis and retail marketing work to identify trade areas and realistic grocer formats for Josephine.

Why it matters: The orientation and staff reports give the board context for using MDD sales tax revenue—examples included infrastructure, public facilities and cooperative incentive agreements—and outline the realistic, often multi‑year path to landing a grocery anchor or other retail that can catalyze additional development. The finance and planning updates provide the board immediate figures and active project timelines that will shape near‑term decisions.

Next steps: Staff will provide follow‑up reports on transportation project timelines, continue engagement with academic partners on market and marketing analyses, and present an itemized list of grants and loans at an upcoming meeting. The board also directed staff to plan a regular meeting cadence and to consider special meetings when negotiations require it.