SUBJECT: An Ordinance approving an economic development agreement (“Agreement”) between the City of Houston (“City”) and WOIH Partners LLC (“Developer”) pursuant to Chapter 380, Texas Local Government Code
RECOMMENDATION: (Summary)
Adopt an Ordinance approving an economic development agreement (“Agreement”) between the City of Houston (“City”) and WOIH Partners LLC (“Developer”) pursuant to Chapter 380, Texas Local Government Code
SPECIFIC EXPLANATION:
In 1989, the State legislature enacted Chapter 380 of the Texas Local Government Code (“Code”) to create a mechanism that municipalities could use to grant or loan public funds for economic development purposes. Subsequently, by Ordinance No. 99-674, the City established the City of Houston Chapter 380 loan/grant program, pursuant to the provisions of Chapter 380 of the Code, and adopted criteria for Chapter 380 assistance to provide the City with an additional tool to encourage development in targeted areas to fulfill a critical need to attract tourism, commerce and commercial retail to an area resulting in a positive economic impact.
WOIH Partners LLC (“Developer”) intends to develop a music venue at 2915 N. Main in the Near Northside area of the City that will include both an indoor performance space and an outdoor theater, a restaurant and a bar, and outdoor volleyball courts (the “Project”). As part of the Project, the Developer will construct 3 parking lots to limit the amount of on-street parking in the neighborhood. The developer will also construct public improvements including sidewalk improvements, landscaping improvements, street lighting, and an upgrade to a public sanitary sewer line.
The Administration proposes to enter into an economic development agreement with the Developer (the “Agreement”) to grant a reimbursement in a maximum amount not to exceed $1,100,000 for public improvements costs to the Developer based upon the incremental increases in the City’s portion of its sales tax and mixed beverage tax revenues (“Incentives”) in the Project area.
The Incentives will be calculated from the base year 2015. Reimbursements to the Developer will begin upon completion of the Project and the public improvements (“Reimbursement Date”), and will terminate upon the earlier of (i) the full payment of the maximum reimbursement amount to the Developer; or (ii) 10 years from the Reimbursement Date. In consideration of the City’s grant of the Incentives, the Developer will comply with performance conditions outlined in the Agreement including all of the public infrastructure improvements listed above, as well as giving the local middle and high school rehearsal space, bringing the first farmer’s market to the Near Northside, and publicly available parking during non-venue hours.
cc: Marta Crinejo, Agenda Director
Anna Russell, City Secretary
Mary Buzak, City Attorney
Gary Dzierlenga, Senior Assistant City Attorney