Lease of City-Owned Property at 211 W. Main St.

Staff Report & Agenda Item Details

A public hearing was held to consider a resolution approving a Chapter 380 Economic Development Performance Agreement with Grounded, LLC. Beverly Abell, Downtown Development Manager, stated that in 2025, the City of Mesquite purchased the property located at 211 West Main Street in Downtown Mesquite with the goal of utilizing the property for downtown development purposes. Grounded LLC was selected to partner with the City of Mesquite for the business development project. The business model provides for a dining and entertainment entity, which is a priority in the downtown development strategy. Main negotiated points of performance include: - Grounded LLC to operate a beverage, food and retail business that will also feature live entertainment and interactive programming. - Grounded LLC to provide all tenant finishes in addition to all fixtures, equipment, fittings and furnishings as detailed in the Lease. - Grounded LLC must complete its improvements 90 days after completion by the City of City improvements as detailed in the Lease. Total cost of improvements must meet or exceed $60,000.00 - A Certificate of Occupancy must be achieved on or before 180 days after City completes the City improvements. - First six months of the lease period will be waived. - Lease term is for five years with opportunity for two five-year renewals. - If Grounded LLC meets all requirements as stated in the Chapter 380 Agreement and lease, the company will have an Option to Purchase at market rate at the end of five years. Bryson and Meagan Funk, owners of Grounded LLC, presented an overview of the proposed development which will be a third space for community gathering and relaxation. There will be outdoor programming such as plant potting, and family digs as well as food and beverage services. The menu will include locally sourced charcuterie, tapas, artisanal breads, hummus, globally-inspired desserts, juices, teas, coffee and wine. Rebecca Martinez, 4523 Marigold Trail, had questions regarding City-owned and leased properties in Downtown Mesquite. Mr. Green moved to approve Resolution No. 22-2026, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A PROGRAM TO PROMOTE LOCAL ECONOMIC DEVELOPMENT AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY; AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE AN ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (CHAPTER 380 AGREEMENT) AND RELATED LEASE AGREEMENT FOR SUCH PURPOSES WITH GROUNDED LLC, FOR THE DEVELOPMENT OF A RESTAURANT AND RETAIL BUSINESS IN A CITY-OWNED BUILDING LOCATED IN DOWNTOWN MESQUITE AT 211 WEST MAIN STREET, MESQUITE, TEXAS (THE “PREMISES”); PROVIDING FOR THE LEASE OF THE PREMISES WITH AN OPTION TO PURCHASE THE PREMISES FOR SUCH PRICE AND UPON SUCH TERMS AND CONDITIONS AS SET FORTH IN THE AGREEMENT AND LEASE; AND AUTHORIZING THE CITY MANAGER TO ADMINISTER THE AGREEMENT AND LEASE ON BEHALF OF THE CITY. Motion was seconded by Mr. Casper. On call for a vote on the motion, the following votes were cast: Ayes: Green, Casper, Alemán, Hubacek, Smith, Murden Nayes: Rodriguez-Ross

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 2.7/10). 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).