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Discussion of issues relating to a proposed Chapter 380 Economic Development Program Agreement with Cencor Acquisition Company, Inc.
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Summary:
The City is working with Cencor Acquisition Company, Inc., to propose a Chapter 380 Economic Development Program agreement under which Cencor would develop a retail development project at the northwest corner of Spencer Highway at East Boulevard. The project (Junction at Deer Park) is located on the site which currently includes a HEB retail grocery store and is proposed to include additional mixed used/retail space and/or restaurants. It is anticipated that the project will generate a substantial number of jobs, increase the tax base, both in ad valorem (property) taxes and sales taxes, and encourage economic development in the City.
Article III, Chapter 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code provides authority for cities to establish a Chapter 380 economic development program under which a city may make grants of public funds for the public purposes of promoting local economic development and stimulating business and commercial activity and job creation within the City.
The City Council established a Chapter 380 economic development program on March 22, 2011, by approval of Resolution No. 2011-08. Additionally, an action plan included in the City's Strategic Plan report on September 29, 2014 was to "work with owners/developers of the planned retail center at East Blvd. and Spencer Highway to develop a 380 agreement."
This development is projected to generate significant property tax value and revenues for the City and sales and use taxes for the City, CCPD, FCPEMSD, and Community Development Corporation (TYPE B). Based on the developer's anticipated construction schedule, the developer's financial advisor estimates that over a 15 year period the projected increased revenues for the aforementioned entities are as follows:
Revenue Projection Summary (15 year Period:...
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