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Boards Approve Development Agreement for Large Warehouse Project; Sales-tax reimbursement and water infrastructure discussed
Summary
Boards authorized the town manager to execute a development agreement for a warehouse project described as about 1,500,000 sq ft with a projected taxable value of $250,000,000 by 2055; the deal includes construction sales-tax reimbursement (construction materials only) and a portion of sales tax directed to the general fund and Star Center.
Town staff presented a proposed development agreement for a large warehouse project identified in the packet as "North Lake 156/14," describing an approximately 1,500,000-square-foot warehouse development with a projected taxable value of $250 million by 2055. Staff said the agreement contemplates construction-sales-tax reimbursement for materials used in construction, but that reimbursement would be available only if the developer locates the taxable situs in Northlake.
The staff presentation explained how sales-tax distribution would work: the construction-materials portion that the EDC/CDC would reimburse is separate from the portion that flows to the general fund, and a 0.25-cent allocation was identified for the Star Center project. Staff also described water infrastructure components included in the development plan: an on-site pump station and initial 1,000,000-gallon ground storage tanks, with provision for additional storage as the area develops.
Board members asked whether the sales-tax reimbursement covered only the construction phase; staff replied it would apply only during construction materials. A motion to authorize the town manager to execute the development agreement passed by voice vote. Staff noted the developer must follow situs-determination steps in Texas to qualify for the reimbursement and that the town has previously struggled to secure situs for other projects.
