AGENDA CAPTION:
Title
Consider approval of Resolution 2021-88R, approving a Chapter 380 Economic Development Incentive Agreement with 320 Barnes 2020, L.P., a Texas Limited Partnership, providing incentives in the form of refunds of a percentage of real property taxes over three years for the development of approximately 135,000 square feet of space for lease to light manufacturing, office, warehouse, showroom, and research & development users at 320 Barnes Drive; authorizing the City Manager, or his designee, to execute said agreement; and declaring an effective date.
Body
Meeting date: May 4, 2021
Department: City Manager’s Office
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Vision San Marcos - A River Runs Through Us
Background Information:
Live Oak Realty intends to construct speculative shell buildings at 320 Barnes Drive in San Marcos. The estimated total square footage of the new buildings is 135,000 square feet. The $14,000,000 investment in real property will allow for the immediate availability of space for light manufacturing, office, warehouse, showroom, and research & development users to lease. The investment is meant to help address the lack of available spec facilities in San Marcos, which will make the City more competitive for new projects. Construction is estimated to begin in the third quarter of 2021 and be complete by the second quarter of 2022.
The City is considering an economic development incentive to the developer. The proposed incentive is a 3-year rebate of real property tax; year 1 - 100%, year 2 - 75%, year 3 - 50%. The rebate is only paid if the buildings are not leased, incentives void as the buildings becomes occupied. The maximum estimated rebate the developer may receive is $79,920 and the minimum estimated tax revenue the City may receive is $63,750 over the three year period.
Council Committee, Board/Commission Action:
Economic Development San Marcos Board recommended approval on March 5, 2021 by vote of 9 - 1 (For: Algoe, Cardona, Couch, Dobbins, Ingalsbe, Kenworthy, Lumbreras, Mock, Terwort Against: Baker)
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Recommendation:
Staff recommends approval.