AGENDA CAPTION:
Title
Consider approval of Resolution 2020-230R, approving a Chapter 380 Economic Development Incentive Agreement with DBI San Marcos Property, L.P., providing incentives in the form of refunds of a percentage of real property taxes over three years for the development of approximately 174,515 square feet of space for lease to commercial and industrial users at 1551 Clovis Barker; authorizing the City Manager, or his designee, to execute said agreement; and declaring an effective date.
Body
Meeting date: October 20, 2020
Department: City Manager
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Vision San Marcos - A River Runs Through Us
Background Information:
Bearden Investments (DBI San Marcos Property, LP) intends to construct 3 separate speculative shell buildings at 1551 Clovis Barker Road in San Marcos. The estimated total square footage of the new buildings is 174,515; building 1 - 62,194, building 2 - 77,703, building 3 - 34,618. The $10,500,000 investment in real property will allow for the immediate availability of space for commercial, office, warehouse, and light industrial 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 November of 2020 and be complete by October 2021.
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 buildings become occupied. The maximum rebate the developer can receive is $147,000 and the minimum tax revenue the City can receive is $50,000.
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Recommendation:
Staff recommends approval.