Public Hearing and Resolution - Town East Mall Sign

Staff Report & Agenda Item Details

A public hearing was held to consider a resolution approving an Amended and Restated Chapter 380 Economic Development Program Agreement with Town East Mall, LLC. Kim Buttram, Director of Economic Development, stated that Town East Mall, LLC, proposes to engage in an agreement and ground lease with Premier Community Signs, LLC, to remove the existing Marquee Sign for the purpose of rebuilding a modern sign that is 66-feet, 6 inches-tall by 26-footbase, displaying a 672-square-foot LED display screen facing north and south adjacent to IH-635. Ms. Buttram stated that the original agreement became effective on March 13, 2013, with advertising on the sign restricted to being sold to businesses only within the Town East Retail and Restaurant Area (TERRA) overlay. The City received twenty-five percent of gross revenues received from revenues paid to Town East Mall in conjunction with the sign. To date the agreement’s performance is as follows: - Original incentive grant amount: $700,000.00 - Repayment received through advertising income: $61,030.00 - Balance owed to the City: $638,969.00 Ms. Buttram stated that the amended and reinstated agreement outlines the terms and conditions, including removing the restriction of advertising sales being limited to businesses within the TERRA overlay. This change opens new revenue opportunities to Town East Mall, for which the City will continue to receive twenty-five percent of the advertising sales revenue, as well as twenty-five percent of the ground lease revenue received from Community Signs, LLC, and paid to Town East Mall, for the land area under the new sign. Ms. Buttram stated that the agreement further provides conditions for repair, non-operational periods, adherence to City codes and ordinances, sale of the tract or the mall, and advertising content associated with the sign during the term of the new agreement. Payment of the grant back to the City is due in full by December 31, 2039. The agreement also provides for the City to have 9th advertising space on each side of the sign in a cycle rotation and, as needed, when providing emergency messaging in coordination with public safety officials. Applicant Jack Love, General Manager of General Growth Properties, presented an overview of the proposed agreement. He stated that the Town East Mall occupancy rate is just below 99 percent. No one appeared regarding the proposed resolution. Mr. Hubacek moved to approve Resolution No. 26-2026, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, APPROVING THE AMENDED AND RESTATED CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (“AGREEMENT TWO”) BY AND BETWEEN THE CITY OF MESQUITE, TEXAS, AND TOWN EAST MALL, LLC, REGARDING A NEW ELECTRONIC FREEWAY-ORIENTED MARQUEE SIGN; AUTHORIZING THE CITY MANAGER TO FINALIZE, EXECUTE, AND ADMINISTER SAID “AGREEMENT TWO” FOR SUCH PURPOSES IDENTIFIED HEREIN. Motion was seconded by Mr. Casper and approved unanimously. (Resolution No. 26-2026 recorded in Resolution Book No. 74.)

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 2.4/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).