STRATEGIC PRIORITY: Economic Development
AGENDA DATE: June 14, 2023
COUNCIL DISTRICT(S):|910|DEPARTMENT: Office of Economic Development
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize (1) designating approximately 7.6 acres of property currently addressed as 2534 Royal Lane as City of Dallas Neighborhood Empowerment Zone No. 22 ("NEZ No. 22"), pursuant to Chapter 378 of the Texas Local Government Code, to promote an increase in economic development in the zone, establish boundaries for the zone, and provide for an effective date for the zone; and (2) an economic development incentive agreement with IYK Texas Corporation or an affiliate thereof ("Developer") to include: (a) a real property tax abatement for a period of ten years in an amount equal to the City taxes assessed on ninety percent (90%) of the added taxable value of the Property; (b) a Chapter 380 economic development grant in an amount not to exceed $2,500,000.00; and (c) a Chapter 380 sales tax grant in an amount not to exceed $1,000,000.00 over ten years, all in consideration of the H MART Redevelopment and Supermarket Project ("Project") to be situated on approximately 7.6 acres at 2534 Royal Lane ("Property") in NEZ No. 22, in accordance with the City's Economic Development Incentive Policy - Total not to exceed $3,500,000.00 - Financing: Public/Private Partnership Fund ($2,500,000.00) and Project Sales Tax Agreement Fund ($1,000,000.00); Estimated Revenue Foregone: $510,128.00 over a ten-year period
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BACKGROUND
Over the past year, Office of Economic Development staff, along with the City's independent outside underwriter, have been extensively reviewing the proposed Project and an associated incentive application submitted by H MART Inc. In consultation with the City's independent outside underwriter, staff structured the proposed incentive as gap financing to make the Project financially feasible and negotiated a d...
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