Council unanimously approves Chapter 380 sales-tax sharing agreement with Prologis for two speculative industrial buildings

The Flower Mound Town Council voted unanimously to approve a Chapter 380 sales-tax sharing agreement with Prologis that will apply to building-material purchases for two speculative industrial buildings at 600 Silveron Park.

Ray (economic development staff) told the council the two buildings total roughly 682,000 square feet (one about 522,000 sq ft and the other about 160,000 sq ft) and represent a guaranteed capital investment of roughly $50 million. Staff estimated the incentive as a one-time sharing of 50 percent of the available 1 percent economic-development sales-tax on building materials, producing an estimated payment of $162,500 in the first year.

Ray said the buildings were approved in prior land-use proceedings and will be built whether or not the incentive is granted; the incentive aims to capture a portion of sales tax that otherwise would be collected by other jurisdictions when materials are purchased. "If we don't do this agreement, the build is going to be built," Ray said, adding that without the agreement the sales-tax on materials would go to the community where materials are purchased.

During public comment, resident Fred Vincent asked the council to consider environmental protections, trees and green space before approving development in areas adjacent to the town's cultural/arts campus and ponds. Vincent urged investments in trees and other measures to mitigate heat and stormwater runoff.

Council members discussed prior rezoning steps that required tree-planting and landscaping commitments around the parcel and noted the 380 agreement does not change what is to be built. Councilmember (identified in roll call) moved approval of regular item K1; roll call recorded affirmative votes from Councilmember Warner, Deputy Mayor Pro Tem Taylor, Councilmember Harris, Mayor Pro Tem Schiefel and Councilmember Drew. The motion passed unanimously.

Next steps: the Chapter 380 agreement will be finalized by staff and the developer, with required finish-out conditions before the payment is released.

Votes at a glance - Motion: "Move approval of regular item 1 as presented." (mover: Councilmember who stated the motion on the record) — Outcome: approved, unanimous (Aye: Councilmember Warner; Deputy Mayor Pro Tem Taylor; Councilmember Harris; Mayor Pro Tem Schiefel; Councilmember Drew).

Sources: Town presentation and public comments during the May 18 meeting.