AGENDA CAPTION:
Title
Consider approval of Resolution 2022-130R, approving a Chapter 380 Economic Development Incentive Agreement with Hill Country Group, LLC, providing incentives in the form of refunds of a percentage of real and personal property taxes over five years for the construction of a minimum 820,000 square feet of space for the location of a studio facility for film and video production within the La Cima Development; authorizing the City Manager, or her designee, to execute said agreement; and declaring an effective date.
Body
Meeting date: June 7, 2022
Department: City Manager’s Office - Economic Development
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☒ Economic Development - Diverse Local Economic Environment
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Background Information:
Locating at 6202 West Centerpoint Road, this project was previously designated “Dark Monday.” Hill Country Group, LLC is proposing to construct a minimum of 820,000 sf for a full-service studio facility including sound stages, workshops, backlots, production offices, commissary, and additional space for vendors and support facilities. Capital investment is $267 million and will employ 22 full-time employees at opening with 44 by full build-out.
The studio would be built on approximately 75 acres of a 209 acre tract within the La Cima development. The proposed start date is April 2023 with complete build-out in August 2025. The estimated rebate via Chapter 380 is $3.7 million with the City estimated to retain $11.5 million over 10 years.
The Economic Development San Marcos (EDSM) Board voted 8-1 at a November 5, 2021, meeting to recommend the City enter into a Chapter 380 agreement with Project Dark Monday. Comments in support of the motion were that the project will be transformational to the area economy and school district and is an opportunity to grow the community and impact the local educational system at multiple levels. Comments against the motion were concerns about the type of industry the project is in and its hiring practice and potential lack of unions.
Council Committee, Board/Commission Action:
EDSM Board voted 8-1 on November 5, 2021, to recommend the project to City Council with Councilmember Baker dissenting.
Alternatives:
City Council may choose to not approve the Chapter 380 agreement or may approve a different percentage of incentives.
Recommendation:
Staff recommends executing a Chapter 380 agreement as presented.