TITLE
Consider an ordinance approving the Master Economic Development Agreement By and Among the City of Killeen, Killeen Tax Investment Zone #2 and La Cascata Retail Village LLP.
SUMMARY
AGENDA ITEM
Approve the Master Economic Development Agreement By and Among the City of Killeen, Killeen Tax Investment Zone #2 and La Cascata Retail Village LLP.
ORIGINATING DEPARTMENT
City Attorney
BACKGROUND INFORMATION
The City of Killeen has in place a Chapter 380 Economic Development Program, designed to promote local economic development and to stimulate business and commercial activity in the city. Additionally, pursuant to the Tax Increment Financing Act, Chapter 311, Texas Tax Code (the “TIF Act”), the City has designated a reinvestment zone to promote development or redevelopment of property within the City. Under the TIF Act, the City has the power to use tax increments within the reinvestment zone to finance and refinance public works and public improvement projects.
DISCUSSION/CONCLUSION
In 2012, the Killeen Economic Development Corp. began discussions with representatives of the La Cascata Retail Village LLP (“Developer”) regarding development of a shopping center development, containing approximately 320,000 square feet of rentable area, on the western border of Skylark Field. The Developer advised that an agreement with the City to provide a performance-based economic development grant to defray a portion of the costs would make the project more feasible. After negotiations between the representatives of KEDC, the City and Developer, the following terms were reached, and are being recommended to Council:
TIRZ #2 Components:
· Financing of $8,000,000 in eligible project costs (i.e., off-site streets, water, wastewater, storm drainage and other public improvements necessary in connection with the development) with TIRZ funds;
· Developer must create a taxable appraised value of at least $3...
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