Public Hearing and Resolution - SRB Mesquite, LLC,

Staff Report & Agenda Item Details

A public hearing was held to consider a resolution approving the termination of an Economic Development Program Chapter 380 Agreement between the City and SRB Mesquite, LLC, a Texas limited liability company, dated effective January 1, 2025, and approving the terms and conditions of an Amended and Restated Chapter 380 Economic Development and Performance Agreement (“New Agreement”) between the City and SRB Mesquite, LLC. Kim Buttram, Director of Economic Development, stated that the City of Mesquite entered into an agreement with SRB Mesquite, LLC, which was approved by the City Council on October 6, 2025, to facilitate the commercial development of an 18.6513-acre parcel of land and redevelopment of an existing building at 1738 North Town East Boulevard, as part of the Town East Mall area formerly occupied by Sears. The agreement required the company to construct a 58,000-square-foot Main Event brand family entertainment business within the former Sears building, opening by December 31, 2026, and with a 10-year lease. As a result of changing market conditions for the parent owner of Main Event (Dave and Busters) resulting in constriction of national store expansions, the developer of the site proposes a new international entertainment anchor, Round1, to occupy a minimum 85,000 square feet under a 10-year lease. Ms. Buttram stated that the proposed new anchor offers bowling, arcade, pickle ball, full restaurant, karaoke, and other activities for families and corporate clientele, and has locations throughout the world. The Mesquite location would be the first in Dallas County. Ms. Buttram stated that like the original agreement, the amended and restated agreement requires the Company to make a minimum capital investment of $25M; however, the requirement for completion and Certificate of Occupancy is proposed to be extended for six months, from July 1, 2027, to December 31, 2027. Ms. Buttram stated that the amended and restated agreement proposes additional annual sales requirements generated by the businesses on the site, increasing year one performance to $150,000.00 paid to the City (approximately $15M in taxable sales - previously $100,000.00/$10M), year two performance to $200,000.00 paid to the City (approximately $20M in taxable sales - previously $150,000.00/$15M), and years three - 10 performance to $250,000.00 paid to the City (approximately $25M in taxable sales - previously $200,000.00/$20M). Additionally, the amended and reinstated agreement remains unchanged regarding outparcel development and the incentive amount - a one-cent State Use and Sales Tax rebate on any qualifying businesses built on the tract by December 31, 2030. Ms. Buttram stated that a $500,000.00 bonus incentive remains available to the Company, should the Company secure a 5-year lease for a minimum 6,000-square-foot Vidorra restaurant; however, the location would be on the second floor of the old Sears vs. the first floor as stated in the original agreement. Applicant James Mason, representing Four Rivers Capital, presented an overview of the proposed redevelopment. Round1 is a Japanese entertainment company and arcade chain that operates large indoor entertainment centers. Round1 offers bowling, arcade games, claw machines, billiards, karaoke rooms, kid zone area, and Japanese inspired food and beverages. There are currently 49 locations in the United States and rapidly growing. Vivian Johnson, 4538 Live Oak Drive, expressed support for the proposed resolution. No others appeared regarding the proposed resolution. Mr. Casper moved to approve Resolution No. 11-2026, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, APPROVING THE TERMINATION OF AN ECONOMIC DEVELOPMENT PROGRAM CHAPTER 380 AGREEMENT BETWEEN THE CITY AND SRB MESQUITE, LLC, DATED EFFECTIVE JANUARY 1, 2025, AND APPROVING THE TERMS AND CONDITIONS OF AN AMENDED AND RESTATED CHAPTER 380 ECONOMIC DEVELOPMENT AND PERFORMANCE AGREEMENT (“NEW AGR

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.7/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.