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 an economic development incentive agreement with Pegasus Park, LLC and/or an affiliate thereof ("Developer") to include: (1) a real property tax abatement for a period of ten (10) years in an amount equal to: (a) from year (1) through year seven (7), the City's taxes assessed on ninety percent (90%) of the added taxable value of Property; and (b) from year eight (8) through year ten (10), the City's taxes assessed on seventy percent (70%) of the added taxable value of the Property; and (2) a Chapter 380 economic development grant in an amount not to exceed $3,000,000.00, in consideration of the Bridge Labs project at Pegasus Park ("Project") to be situated on approximately 1.8 acres addressed as 3000 Pegasus Park Drive ("Property") in City of Dallas Neighborhood Empowerment Zone No. 21, in accordance with the City's Economic Development Incentive Policy - Financing: Public/Private Partnership Fund ($3,000,000.00); Estimated Revenue Foregone $4,777,716.00 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 the Developer. 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 detailed Letter of Intent ("LOI") with the Developer. On May 11, 2023, the Developer accepted staff's proposed incentive and executed the LOI. The Resolution accompanying this agenda item contains the detailed terms and conditions of the negotiated economic development incentive agreement.
The proposed Bridge L...
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