Agenda Packet - Laserfiche WebLink

Home Browse Search

Item No. 14 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Economic Development Agreement with Audax Enterprises, LLC (Williamsburg Shopping Center) DATE: January 13, 2025 BACKGROUND: Audax Enterprises, LLC (Audax) acquired the Williamsburg Shopping Center (Center) located at 1313 to 1581 Clarksville St., Paris, Texas 75460 ("Property") in 2023, and during the course of 2023 and into 2024, spent over $1 million in improvements to the property including replacing the roof, doing work on the parking lot, and giving the exterior of the Center a much needed facelift. After completing the renovations, Audax learned of the City's retail economic development program and applied for incentives. After City staff completed its due diligence and presented the project to Council, Council directed staff to prepare a Chapter 380 agreement with the developer to incentivize and aid in its attraction of new retailers to fill 9 empty retail spaces within the Center. The property is located across Clarksville Street from Kroger, and redevelopment of the Center is likely to be an economic catalyst for the area and will be a great convenience for area residents. STATUS OF ISSUE: The attached Economic Development Agreement represents the culmination staff's negotiations with Audax and is consistent with the retail incentives policy. The Agreement contains a property tax incentive in the form of five (5) yearly grants in an amount equal to 50% of the portion of the maintenance and operations (M & O) ad valorem taxes assessed and payable to the City and attributable to the vacant spaces for the calendar years 2024, 2025, 2026, 2027, and 2028. Each grant will be in the amount equal to 18% of the total M & O taxes assessed and paid on the entire property. This percentage has been calculated by multiplying 50% by the percentage of total square footage of the vacant vertical improvements to that of the total Property (36%). The Agreement also includes a sales tax incentive in the form of three (3) annual sales tax grants, each in an amount equal to fifty percent (50%) of the sales tax receipts attributable to the new retailers' sales for the calendar years 2024, 2025, and 2026.