Public Hearing and Resolution - Assignment from 42 Alcott, LP to Alto Alcott Station, LP

Staff Report & Agenda Item Details

A public hearing was held to consider a resolution consenting to the assignment by 42 Alcott, LP, a Texas limited partnership, acting by and through its general partner, 42 C 2021, LLC, a Texas limited liability company (“Assignor”), to Alto Alcott Station, LP, a Delaware limited partnership (“Assignee”), of Assignor’s interest in that certain TIRZ #14 Reimbursement Agreement and City Chapter 380 Incentive Performance Agreement dated effective December 6, 2021, and a First Amendment to TIRZ No. 14 Reimbursement Agreement and Economic Development Program Chapter 380 Agreement (“First Amendment”), dated effective January 21, 2025. Kim Buttram, Director of Economic Development, stated that 42 Alcott, LP, notified the City of the intent to sell the land, known as Tract E Alcott Station, to Alto Investments, with a request of the City to approve the assignment of the existing agreements, including obligations, terms, and conditions, to Alto Alcott Station, LP. Ms. Buttram stated that in summary: • Alto, as developer, would assume the obligations: - Build a minimum 350,000-square-foot industrial facility; commence construction by July 31, 2027, and complete construction by July 31, 2030 - Remove pavement and utilities from East Glen Boulevard by July 31, 2027 - Construct easement improvements including public trails • Alto would receive the terms obligated by the City: - Convey East Glen Boulevard 1.8-acres of land to the developer - Reimburse 100 percent of the Roadway Impact fees - Provide for up to $5.25M qualified TIRZ project expenditure reimbursement of the following projects (as needed): - Excess costs for removal of East Glen Boulevard if more than the Roadway Impact Fee reimbursement - Storm drainage and retention estimated $3.4M - South easement improvements (trail/landscaping) estimated $728,000.00 - Other easement improvements (east and north boundaries outside property line plus grading and site work estimated $839,000.00 - Water and sewer in public right-of-way / roadway improvements / franchise utility relocation estimated $1M Ms. Buttram stated that without any changes to the business terms and obligations outlined in the original agreement and first amendment, the proposed assignment would transfer the agreements to be between the City of Mesquite and Alto Alcott Station, LP, upon approval and execution. Applicant Tony de Bruyn, representing Alto, presented an overview of the development of Alto Alcott Station. No one appeared regarding the proposed resolution. Mr. Murden moved to approve Resolution No. 08-2026, with the Assignment and Assumption Agreement provided in Friday's mail packet, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, CONSENTING TO THE ASSIGNMENT AND ASSUMPTION AGREEMENT BY 42 ALCOTT, LP, A TEXAS LIMITED LIABILITY PARTNERSHIP, ACTING BY AND THROUGH ITS GENERAL PARTNER, 42 C 2021, LLC, A TEXAS LIMITED LIABILITY COMPANY (“ASSIGNOR”), TO ALTO ALCOTT STATION, LP, A DELAWARE LIMITED PARTNERSHIP (“ASSIGNEE”), OF ASSIGNOR’S INTEREST IN THAT CERTAIN TIRZ #14 REIMBURSEMENT AGREEMENT AND CITY CHAPTER 380 INCENTIVE PERFORMANCE AGREEMENT DATED EFFECTIVE DECEMBER 6, 2021, AND A FIRST AMENDMENT TO TIRZ NO. 14 REIMBURSEMENT AGREEMENT AND ECONOMIC DEVELOPMENT PROGRAM CHAPTER 380 AGREEMENT (“FIRST AMENDMENT”) DATED EFFECTIVE JANUARY 21, 2025, FOR THE DEVELOPMENT OF 3300 AND 3301 EAST GLEN BOULEVARD, MESQUITE, TEXAS, AND AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE ASSIGNMENT AND ASSUMPTION AGREEMENT AND ADMINISTER IT ON BEHALF OF THE CITY. Motion was seconded by Mr. Hubacek and approved unanimously. (Resolution No. 08-2026 recorded in Resolution Book No. 74.)

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 2.2/10). 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).