City Council

City of Mesquite, Texas Minutes - Final City Council Monday, October 16, 2023 6:00 PM City Hall | Council Chamber 757 N. Galloway Avenue | Mesquite, Texas Present: Mayor Daniel Alemán, Jr., and Councilmembers Tandy Boroughs, B. W. Smith, Jeff Casper, Kenny Green, Jennifer Vidler and Debbie Anderson, City Manager Cliff Keheley and City Secretary Sonja Land. PRE-MEETING - TRAINING ROOMS A&B - 6:00 P.M. AGENDA REVIEW STAFF PRESENTATIONS 1 Discuss request from the Town of Sunnyvale to provide public safety dispatching and jail services. Council directed staff to proceed with development of an Interlocal Agreement with the Town of Sunnyvale to provide public safety dispatching and jail services. REGULAR CITY COUNCIL MEETING - CITY COUNCIL CHAMBER - 7:07 P.M. INVOCATION Richard Koons, Pastor, Calvary First Baptist Church, Mesquite, Texas. PLEDGE OF ALLEGIANCE City Staff. SPECIAL ANNOUNCEMENTS 1. Ms. Anderson announced that the Leash-Free Zone at Copeland Park, located at Creek Crossing Road and Mesquite Valley Road, officially opened this past weekend. The new three -acre park is the City of Mesquite’s largest dog park and is divided into two separate spaces for large and small dogs. It offers restrooms, a shaded seating area, dog washing station and dog training agility equipment . Opening the dog park is the first phase of development for Copeland Park, which will be 11 acres total when completed. The next phase will include a playground, picnic pavilion and nature walking trails . Planning for this park began almost 10 years ago. Our heartfelt thanks go out to the Copeland family for donating the land and to the citizens who pushed for this park. We are proud to have this wonderful amenity in South Mesquite for all of our residents to enjoy. City of Mesquite, Texas Page 1 City Council Minutes - Final October 16, 2023 2. Mr. Smith stated that the Parks and Recreation Department is hosting the Annual PumpkinFest event on Saturday, October 21, 2023, from Noon to 5:00 p.m., at Paschall Park, 1001 New Market Road. This fun fall event will feature a new hay maze and hay ride this year along with a pumpkin patch, contests, games and plenty of food. On-Air personality Gil Palmer from KEOM 88.5 FM will be the Master of Ceremonies for this year’s event. Many of the activities at PumpkinFest are free including a complimentary trick-or-treat bag to collect candy from all vendors and free arts, crafts and selfie opportunities. With the purchase of a $10.00 wristband, festival goers can enjoy unlimited inflatables, rides, face painting, a hay maze and hay rides. Concessions for purchase will also be available. 3. Mr. Smith announced that a new Neighborhood Watch Group has been created. A Ruby Shaw Neighborhood Meeting will be held on Wednesday, November 1, 2023, at 7:00 p.m., at Ruby Shaw Elementary School, 707 Purple Sage Trail. All citizens are invited to attend. 4. Mr. Boroughs thanked all residents who attended the recent Town Hall meetings that the City hosted to discuss the upcoming Tax Rate Election. If you were unable to attend, the Town Hall meeting held on Tuesday, October 10, 2023, was recorded and can be accessed by visiting www.cityofmesquite.com/2023TaxElection. You can also find Tax Election FAQ’s and voting resources on the City’s website. An increase in the tax rate has been proposed to fund services in the City ’s 2023-24 budget, including funds for roadway and alley reconstruction, additional police officers, a new fire station, staffing and equipment to operate the fire station and a new Behavioral Health Division . Early Voting begins Monday, October 23, 2023, and Election Day is Tuesday, November 7, 2023. 5. Mr. Boroughs announced that the upcoming weekend will be the last weekend of racing at the Devil’s Bowl Speedway where he has been racing for the last 15 years. He stated that the owners have sold the property and confirmed that the City of Mesquite had nothing to do with the closure. 6. Ms. Vidler stated that the City of Mesquite is proud to be a co-sponsor with the Mesquite Chamber of Commerce of the upcoming Live-Work-Play in Mesquite, Texas Expo on Saturday, November 4, 2023, from 10:00 a.m. to 2:00 p.m., at the Mesquite Convention Center, 1700 Rodeo Drive. This free business expo and job fair will highlight the products, services and career opportunities available in the City of Mesquite. The event will be divided into two sections. In the Live and Play area, attendees can visit with homebuilders and real estate professionals, restaurant and retail store owners, education representatives and service providers such as plumbers and electricians. In the Work section, attendees will meet with representatives from Mesquite businesses who are hiring. 7. Mr. Green stated that Keep Mesquite Beautiful, Inc., has a trio of special events in November 2023. The Arbor Day celebration will be held on Friday, November 3, 2023, at 10:00 a.m., at Cross Elementary School, 6425 Park Vista Drive. This event will feature music, poetry and a tree planting . Free tree saplings will be provided to attendees while supplies last. Mesquite Recycles Day will be held on Saturday, November 4, 2023, from 8:00 a.m. to Noon, at Poteet High School, 3300 Poteet Drive. This semi-annual event provides residents the chance to recycle items including cell phones, batteries, toys, clothes and household items. Appliances, computers and old TV ’s will be accepted. Tires are limited to four tires per person. Onsite shredding will be available. Visit www.cityofmesquite.com/RecyclesDay for a complete list of items that can be recycled. Also, the Annual Recycled Fashion Show will be held on Saturday, November 11, 2023, from 2:00 p.m. to 4:00 p.m., at Town East Mall. This unique event showcases costumes created from recycled materials. 8. Mr. Casper invited citizens to the Fall Festival and Car Show on Thursday, October 26, 2023, from 5:30 p.m. to 7:30 p.m., at Vanguard High School, 4201 Faithon P. Lucas, Sr., Boulevard. 9. Mr. Casper invited citizens to celebrate Hispanic culture and heritage with the Mesquite Arts Council’s 7th Annual Día de los Muertos Celebration on Saturday, October 28, 2023. This free, family-friendly Day of the Dead festival will be held from 4:00 p.m. to 7:00 p.m. inside the building and on the grounds of the Mesquite Arts Center, 1527 North Galloway Avenue. This festival will feature cultural arts workshops, music, dancing, theatrical performances, food trucks and vendors. Attendees can also shop with more than a dozen vendors and concessions will be available for purchase from a variety of food trucks. City of Mesquite, Texas Page 2 City Council Minutes - Final October 16, 2023 10. Mayor Alemán thanked all of the hundreds of volunteers who made the 19th Annual Addressing Mesquite Day an incredible success. Dozens of home repair projects were performed for disabled veterans, senior citizens, single parents and other Mesquite residents who needed assistance. We can also be proud of our community because the City was recently recognized with the highest -level designation from Scenic Texas for high-quality scenic standards for public roadways and spaces. City officials received the 2023 Platinum Scenic City Certification award in Dallas during the Texas Municipal League’s Annual Conference on Thursday, October 5, 2023. The Scenic City program evaluates and recognizes Texas municipalities that put standards into practice that create a more scenic environment in their communities. This includes creating scenic roadways, preserving historic sites and improving parks and green spaces. Mesquite is one of 23 cities in Texas to earn certifications in 2023. The City has earned four consecutive certifications and has been a certified Scenic City since the program began in 2010. CONSENT AGENDA Approval of the Consent Agenda Mr. Green moved to approve the Consent Agenda as follows. Motion was seconded by Ms. Vidler and approved unanimously. 2 Minutes of the regular City Council meeting held October 2, 2023. Approved on the Consent Agenda. 3 An ordinance amending Chapter 9, Section 9-147(1)(a) of the City Code by providing two additional school zones for Cross Elementary School. Approved on the Consent Agenda. Ordinance No. 5073, AN ORDINANCE OF THE CITY OF MESQUITE, TEXAS, AMENDING CHAPTER 9, SECTION 9-147(1)(a) OF THE MESQUITE CITY CODE BY PROVIDING TWO ADDITIONAL SCHOOL ZONES FOR CROSS ELEMENTARY SCHOOL; PROVIDING A REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500.00 FOR EACH OFFENSE; PROVIDING PUBLICATION OF THE CAPTION HEREOF; AND DECLARING AN EFFECTIVE DATE THEREOF. (Ordinance No. 5073 recorded in Ordinance Book No. 130.) 4 An ordinance amending Chapter 14 of the City Code regarding Solid Waste, Article III (Commercial Collection) for the purpose of providing updated commercial collection regulations and other related general revisions. Approved on the Consent Agenda. Ordinance No. 5074, AN ORDINANCE OF THE CITY OF MESQUITE, TEXAS, AMENDING THE MESQUITE CITY CODE BY MAKING CERTAIN ADDITIONS AND DELETIONS UNDER CHAPTER 14 “SOLID WASTE,” ARTICLE III (COMMERCIAL COLLECTION) FOR THE PURPOSE OF PROVIDING UPDATED COMMERCIAL COLLECTION REGULATIONS, AND OTHER RELATED GENERAL REVISIONS; PROVIDING A CONFLICTS RESOLUTION CLAUSE; A SEVERABILITY CLAUSE; A SAVINGS CLAUSE; A PENALTY NOT TO EXCEED FOUR THOUSAND DOLLARS ($4,000.00); PROVIDING FOR PUBLICATION; AND DECLARING AN EFFECTIVE DATE. (Ordinance No. 5074 recorded in Ordinance Book No. 130.) City of Mesquite, Texas Page 3 City Council Minutes - Final October 16, 2023 5 A resolution authorizing acceptance of the Fiscal Year 2023-2024 Homeland Security Grant Program and execution of the Sub-Recipient Agreements with the Office of the Governor, Texas Homeland Security - State Administrative Agency, in the amounts of $100,000.00 and $146,084.73, designating the City Manager as the official representative of the City in connection with the grant and authorizing the City Manager to take all actions and execute all documents with the State of Texas Department of Homeland Security. Approved on the Consent Agenda. Resolution No. 52-2023, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, AUTHORIZING ACCEPTANCE OF THE FISCAL YEAR 2023-2024HOMELAND SECURITY GRANT PROGRAM AND EXECUTION OF THE SUB-RECIPIENT AGREEMENTS WITH THE OFFICE OF THE GOVERNOR, TEXAS HOMELAND SECURITY - STATE ADMINISTRATIVE AGENCY, FOR GRANTS IN THE AMOUNTS OF $100,000.00 AND $146,084.73; DESIGNATING THE CITY MANAGER AS THE OFFICIAL REPRESENTATIVE OF THE CITY IN CONNECTION WITH THE GRANTS; AND AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS AND EXECUTE ALL DOCUMENTS WITH THE STATE OF TEXAS DEPARTMENT OF HOMELAND SECURITY. (Resolution No. 52-2023 recorded in Resolution Book No. 68.) 6 A resolution authorizing acceptance of the Fiscal Year 2023-2024 Homeland Security Grant Program and execution of the Sub-Recipient Agreements with the Office of the Governor, Texas Homeland Security - State Administrative Agency, in the amount of $20,000.00, designating the City Manager as the official representative of the City in connection with the grant and authorizing the City Manager to take all actions and execute all documents with the State of Texas Department of Homeland Security. Approved on the Consent Agenda. Resolution No. 53-2023, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, AUTHORIZING ACCEPTANCE OF THE FISCAL YEAR 2023-2024 HOMELAND SECURITY GRANT PROGRAM AND EXECUTION OF THE SUB-RECIPIENT AGREEMENTS WITH THE OFFICE OF THE GOVERNOR, TEXAS HOMELAND SECURITY - STATE ADMINISTRATIVE AGENCY, IN THE AMOUNT OF $20,000.00; DESIGNATING THE CITY MANAGER AS THE OFFICIAL REPRESENTATIVE OF THE CITY IN CONNECTION WITH THE GRANT; AND AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS AND EXECUTE ALL DOCUMENTS WITH THE STATE OF TEXAS DEPARTMENT OF HOMELAND SECURITY. (Resolution No. 53-2023 recorded in Resolution Book No. 68.) 7 Bid No. 2023-051 - Cost Recovery Billing for Vehicle Accidents. (Staff recommends award to Fire Recovery USA, LLC., and to authorize the City Manager to finalize and execute an agreement. The term of the agreement is for a one-year period and shall automatically renew for five successive one-year periods unless either party provides written notice to the other party of its decision not to renew.) Approved on the Consent Agenda. 8 An ordinance amending Chapter 6 of the City Code by adding new Article III - Mitigation Rates - For Emergency and Non-Emergency Services for the City of Mesquite, Texas Page 4 City Council Minutes - Final October 16, 2023 purpose of adding authorization for a schedule of mitigation rates for Fire Department services, amending Appendix D - Comprehensive Fee Schedule, Article VI - Fire, adding new Sec. 6-109 Mitigation Rates - For Emergency and Non-Emergency Services thereby adding the schedule of mitigation rates. Approved on the Consent Agenda. Ordinance No. 5075, AN ORDINANCE OF THE CITY OF MESQUITE, TEXAS, AMENDING THE MESQUITE CITY CODE CHAPTER 6, ADDING NEW ARTICLE III – MITIGATION RATES - FOR EMERGENCY AND NON-EMERGENCY SERVICES FOR THE PURPOSE OF ADDING AUTHORIZATION FOR A SCHEDULE OF MITIGATION RATES FOR FIRE DEPARTMENT SERVICES; AMENDING APPENDIX D – COMPREHENSIVE FEE SCHEDULE, ARTICLE VI – FIRE, ADDING NEW SEC. 6-109 MITIGATION RATES - FOR EMERGENCY AND NON-EMERGENCY SERVICES THEREBY ADDING THE SCHEDULE OF MITIGATION RATES; PROVIDING A CONFLICTS RESOLUTION CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE WITH A FINE NOT TO EXCEED $500; PROVIDING FOR PUBLICATION OF THE CAPTION HEREOF; AND DECLARING AN EFFECTIVE DATE. (Ordinance No. 5075 recorded in Ordinance Book No. 130.) 9 Bid No. 2023-108 - Roadway Maintenance for Motley Drive. (Staff recommends award to low bidder Estrada Concrete Company, LLC, and to authorize the City Manager to finalize and execute a contract in the amount of $1,883,456.00.) Approved on the Consent Agenda. 10 Bid No. 2024-003 - Annual Supply of Police Body Armor. (Staff recommends purchase from Nardis, Inc., through BuyBoard Contract No. 670-22, in an amount not to exceed $58,800.00.) Approved on the Consent Agenda. 11 Bid No. 2024-009 - Purchase of Irrigation Controllers. (Staff recommends award to Irrigation Station - Rockwall, through BuyBoard Contract No. 706-23, in an amount not to exceed $181,666.81.) Approved on the Consent Agenda. 12 Bid No. 2024-012 - GrayKey License Renewal FY 2024. (Staff recommends purchase from sole source provider Grayshift, LLC, in an amount not to exceed $50,595.00.) Approved on the Consent Agenda. 13 Bid No. 2024-018 - GolfNow Software Upgrade and Credit Card Processing Services. (Authorize the City Manager to finalize and execute a contract and required documents with sole source provider GolfNow, LLC, for the sole source software and credit card processing services in an amount not to exceed $70,000.00. The term of the contract is for a one-year period, with five one-year renewal options. The City Manager is authorized to exercise the renewal options, subject to the annual appropriation of sufficient funds.) Approved on the Consent Agenda. City of Mesquite, Texas Page 5 City Council Minutes - Final October 16, 2023 END OF CONSENT AGENDA PUBLIC HEARINGS 14 Conduct a public hearing and consider an ordinance for: ( 1) Zoning Text Amendment No. 2023-03, amending the Mesquite Zoning Ordinance (“MZO”) by making certain revisions to Part 4, 4-930, including Section 4-932 “Skyline Logistics Hub Overlay District Prefix” thereby amending the identified boundaries for the overlay, and Section 4-933 “Permitted uses” thereby amending prohibited uses in the Skyline Logistics Hub Overlay, and other related revisions as needed to the MZO; and (2) Zoning Application No. Z0823-0324, submitted by the City of Mesquite, for a change of zoning and making a zoning map amendment thereby removing the Skyline Logistics Hub Overlay from certain properties located in the 5500 and 5600 blocks of South Buckner Boulevard; the 4200 and 4300 blocks of Interstate Highway 30; the 2800 through 3000 blocks of East Meadows Boulevard; and the 4200 and 4300 blocks of Action Drive. (No responses in favor or in opposition to the application have been received from property owners within the statutory notification area. The Planning and Zoning Commission recommends approval.) A public hearing was held for Zoning Text Amendment No. 2023-03 and Zoning Application No. Z0823-0324. Jeff Armstrong, Director of Planning and Development Services, stated that staff proposes the removal of two groups of lots from the Skyline Logistics Hub Overlay (SLH). The two areas are fully developed with relatively small lots and buildings that include uses that are not consistent with the intent of the SLH. Staff also proposes a Zoning Ordinance Text Amendment that would add several additional uses that would be prohibited in the SLH. The prohibition of these uses would further solidify the overlay’s intent as an area for high employment and strong property value uses. No one appeared regarding the proposed text amendment and proposed application. Mr. Green moved to approve Zoning Text Amendment No. 2023-03 and Zoning Application No. Z0823-0324, as recommended by the Planning and Zoning Commission, and to approve Ordinance No. 5076, AN ORDINANCE OF THE CITY OF MESQUITE, TEXAS, AMENDING THE MESQUITE ZONING ORDINANCE (MZO) BY MAKING CERTAIN REVISIONS TO PART 4, 4-930 “SKYLINE LOGISTICS HUB OVERLAY DISTRICT” FOR THE PURPOSE OF AMENDING THE IDENTIFIED BOUNDARIES FOR THE OVERLAY, AMENDING PROHIBITED USES IN THE OVERLAY, AND OTHER RELATED REVISIONS AS NEEDED TO THE MZO; AND A CHANGE OF ZONING AND MAKING A ZONING MAP AMENDMENT THEREBY REMOVING THE SKYLINE LOGISTICS HUB OVERLAY FROM CERTAIN PROPERTIES LOCATED IN THE 5500 AND 5600 BLOCKS OF SOUTH BUCKNER BOULEVARD, THE 4200 AND 4300 BLOCKS OF INTERSTATE HIGHWAY 30, THE 2800 THROUGH 3000 BLOCKS OF EAST MEADOWS BOULEVARD, AND THE 4200 AND 4300 BLOCKS OF ACTION DRIVE; REPEALING ALL OTHER ORDINANCES IN CONFLICT WITH THE PROVISIONS OF THIS ORDINANCE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED $2,000.00; City of Mesquite, Texas Page 6 City Council Minutes - Final October 16, 2023 PROVIDING PUBLICATION OF THE CAPTION HEREOF; AND PROVIDING AN EFFECTIVE DATE. Motion was seconded by Mr. Boroughs and approved unanimously. (Ordinance No. 5076 recorded in Ordinance Book No. 130.) 15 Conduct a public hearing and consider a resolution approving a First Amendment to TIRZ No. 12 Reimbursement Agreement, Repurchase Option Agreement and City Chapter 380 Incentive and Performance Agreement (First Amendment) with IH 20 IP, LLC (Developer) and the Board of Directors of Reinvestment Zone No. 12, City of Mesquite, Texas (IH-20 Business Park) (TIRZ) regarding the developer’s construction of an approximately 210.026-acre Class A Industrial Park in the TIRZ located at 925 McKenzie Road, 3400 McKenzie Road, 2700 McKenzie Road, 4800 Lasater Road and 4900 Lasater Road, Mesquite, Texas, and the acquisition from the City and by the Developer of approximately 100.264 acres of land in the TIRZ and located at 925 McKenzie Road and 3400 McKenzie Road, Mesquite, Texas, and the granting to the Developer of certain TIRZ reimbursements and economic development incentives and authorizing the City Manager to finalize and execute the First Amendment and take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the First Amendment and administer the First Amendment on behalf of the City. A public hearing was held to consider a resolution for a First Amendment to TIRZ No. 12 Reimbursement Agreement, Repurchase Option Agreement and City Chapter 380 Incentive and Performance Agreement (First Amendment) with IH 20 IP, LLC and the Board of Directors of Reinvestment Zone No. 12 (IH-20 Business Park), City of Mesquite, Texas. Kim Buttram, Director of Economic Development, stated that Tax Increment Reinvestment Zone (TIRZ) No. 12 was created on June 4, 2018, by Resolution No. 31-2018, to provide a funding mechanism for the improvements needed to develop the land for commercial use. The project and financing plan was updated per the current project costs and scope and adopted by the TIRZ No. 12 Board of Directors on May 15, 2023. The 30-year TIRZ plan estimates $51 million revenue allocated for allowable project costs and $51 million revenue to the City of Mesquite General Fund. Revenue is calculated by the estimated valuation of real property within the TIRZ area which is created by private investment. Ms. Buttram stated that IH 20 IP, LLC, an entity of 42 Real Estate and SLJ Company, proposed in an agreement approved by the City Council on May 15, 2023, to construct a Class A Industrial Park along IH-20 at Lawson Road in Dallas County, Mesquite, Texas. The proposed development combines five tracts of land for a total of approximately 200-acres, requiring extensive infrastructure to become viable for development. Project costs (infrastructure) for the improvements to the site consist of the excavating and grading, retaining walls, relocation and rebuild of McKenzie Road, new sanitary sewer line, water line expansion and potential relocation, creek enhancements, mitigation, and the development of an electric substation. Ms. Buttram stated that the Chapter 380 Agreement outlines the terms and conditions on the part of the developer, the City of Mesquite, and of TIRZ No. 12, City of Mesquite. Phase One requires the developer to commence infrastructure projects by January 1, 2026, with completion of all infrastructure projects by June 30, 2027. Phase Two (Facility) requires the construction of at least 450,000 square feet of industrial buildings with a capital investment of at least $25 million by July City of Mesquite, Texas Page 7 City Council Minutes - Final October 16, 2023 1, 2027, with completion of the building shell(s) by December 31, 2028. Phase Three (Facility Expansion) requires the vertical construction of at least 1,550,000 square feet of industrial buildings with a capital investment of at least $90 million by July 1, 2030, with completion of the building shell(s) by June 1, 2033. The total required facility construction is two million square feet and $115 million capital investment by the developer. Ms. Buttram stated that the agreement obligates TIRZ No. 12 to reimburse the developer, or the City, should the City step in to construct infrastructure, for all allowable project costs related to infrastructure up to $25 million, in the development of the industrial park. The City of Mesquite is obligated to transfer approximately 100 acres of City-owned property as a grant to the developer with an approximate current value of $2.5 million. Ms. Buttram stated that in the event of a default by the developer, the agreement includes terms allowing the City to regain the City’s land grant by either regaining the property (if default is prior to the beginning of vertical construction) or requiring the developer to purchase the land for either fair market value or a pre-set amount of approximately $13 million, whichever is less (if default is after vertical construction has commenced). Ms. Buttram stated that the proposed First Amendment to the Agreement allows TIRZ reimbursements throughout all separate agreements associated with TIRZ No. 12 to be reimbursed on a pro-rata basis as described within each approved and executed agreement. Applicant Sergio Izquierdo, on behalf of 42 Real Estate, stated that 42 Real Estate has completed over 60 corporate build-to-suit for Fortune 500 companies totaling over 4.7 million square feet in over 32 states and Canada. No one appeared regarding the proposed resolution. Ms. Anderson moved to approve Resolution No. 54-2023, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, APPROVING; A FIRST AMENDMENT TO TIRZ NO. 12 REIMBURSEMENT AGREEMENT, REPURCHASE OPTION AGREEMENT, AND CITY CHAPTER 380 INCENTIVE AND PERFORMANCE AGREEMENT (“FIRST AMENDMENT”) WITH IH 20 IP, LLC (THE “DEVELOPER”), AND THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. 12, CITY OF MESQUITE, TEXAS (IH-20 BUSINESS PARK) (THE “TIRZ”), REGARDING THE DEVELOPER’S CONSTRUCTION OF AN APPROXIMATELY 210.026-ACRE CLASS A INDUSTRIAL PARK IN THE TIRZ LOCATED AT 925 MCKENZIE ROAD, 3400 MCKENZIE ROAD, 2700 MCKENZIE ROAD, 4800 LASATER ROAD, AND 4900 LASATER ROAD, MESQUITE, TEXAS, AND THE ACQUISITION FROM THE CITY AND BY THE DEVELOPER OF APPROXIMATELY 100.264 ACRES OF LAND IN THE TIRZ AND LOCATED AT 925 MCKENZIE ROAD AND 3400 MCKENZIE ROAD, MESQUITE, TEXAS, AND THE GRANTING TO THE DEVELOPER OF CERTAIN TIRZ REIMBURSEMENTS AND ECONOMIC DEVELOPMENT INCENTIVES; AND AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE FIRST AMENDMENT AND TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE NECESSARY OR ADVISABLE TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THE FIRST AMENDMENT, AND ADMINISTER THE FIRST AMENDMENT ON BEHALF OF THE CITY. Motion was seconded by Mr. Green and approved unanimously. (Resolution No. 54-2023 recorded in Resolution Book No. 68.) City of Mesquite, Texas Page 8 City Council Minutes - Final October 16, 2023 16 Conduct a public hearing and consider a resolution 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 a TIRZ No. 12 Reimbursement Agreement, Repurchase Option Agreement, and City Chapter 380 Incentive and Performance Agreement for such purposes with IH 20 IP, LLC (Developer), and the Board of Directors of Reinvestment Zone No. 12, City of Mesquite, Texas (IH-20 Business Park) (TIRZ) regarding the Developer’s construction of an approximately 34-acre Retail Development in the TIRZ located at 4300 Lawson Road, Mesquite, Texas, the acquisition from the City and by the Developer of approximately 34-acres of land in the TIRZ and located at 4300 Lawson Road, Mesquite, Texas, and the granting to the Developer of certain TIRZ reimbursements and economic development incentives, and authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the agreement, and administer the agreement on behalf of the City. A public hearing was held to consider a resolution for a TIRZ No. 12 Reimbursement Agreement, Repurchase Option Agreement and City Chapter 380 Incentive and Performance Agreement with IH 20 IP, LLC and the Board of Directors of Reinvestment Zone No. 12 (IH-20 Business Park), City of Mesquite, Texas. Kim Buttram, Director of Economic Development, stated that Tax Increment Reinvestment Zone (TIRZ) No. 12 was created on June 4, 2018, by Resolution No. 31-2018, to provide a funding mechanism for the improvements needed to develop the land within the TIRZ plan for commercial use. The project and financing plan was updated per the current project costs and scope and adopted by the TIRZ No. 12 Board of Directors on May 15, 2023. The 30-year TIRZ plan estimates $51 million revenue allocated for allowable project costs and $51 million revenue to the City of Mesquite General Fund for all tracts within the TIRZ. Revenue is calculated by the estimated valuation of real property within the TIRZ area which is created by private investment. Ms. Buttram stated that IH-20 Retail, an entity of 42 Real Estate and SLJ Company, is one of four major developments within TIRZ No. 12, being approximately 34-acres and requiring extensive infrastructure and site work to become viable for development. Project costs estimated at $8 million for infrastructure improvements to the site consist of excavating and grading, retaining walls, creek enhancements and mitigation. Ms. Buttram stated that the proposed agreement obligates the developer to complete construction of necessary infrastructure component projects prior to the construction of commercial buildings. The City is proposed to transfer the 34-acre site, upon issuance of a grading permit, with claw backs in place to either receive the land back under City ownership or be compensated for undeveloped land at the time of default. Ms. Buttram stated that the agreement requires that the first phase of construction be 15,000 square feet or $15 million in retail buildings that commence construction by July 1, 3032, and complete construction by December 31, 2035, to begin receiving TIRZ reimbursement of completed TIRZ infrastructure projects; the developer being limited to receive reimbursements no greater than the capital investment made by the developer at the time of request. City of Mesquite, Texas Page 9 City Council Minutes - Final October 16, 2023 Ms. Buttram stated that a second phase of at least 25,000 square feet or $15 million must commence by August 1, 2035, completed by July 1, 2038, to remain eligible to retain any remaining undeveloped land that was transferred to the developer by the City. No one appeared regarding the proposed resolution. Ms. Vidler moved to approve Resolution No. 55-2023, 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 A TIRZ NO. 12 REIMBURSEMENT AGREEMENT, REPURCHASE OPTION AGREEMENT, AND CITY CHAPTER 380 INCENTIVE AND PERFORMANCE AGREEMENT FOR SUCH PURPOSES WITH IH 20 IP, LLC (THE “DEVELOPER”), AND THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. 12, CITY OF MESQUITE, TEXAS (IH-20 BUSINESS PARK) (THE “TIRZ”), REGARDING THE DEVELOPER’S CONSTRUCTION OF AN APPROXIMATELY 34-ACRE RETAIL DEVELOPMENT IN THE TIRZ LOCATED AT 4300 LAWSON ROAD, MESQUITE, TEXAS, THE ACQUISITION FROM THE CITY AND BY THE DEVELOPER OF APPROXIMATELY 34 ACRES OF LAND IN THE TIRZ AND LOCATED AT 4300 LAWSON ROAD, MESQUITE, TEXAS, AND THE GRANTING TO THE DEVELOPER OF CERTAIN TIRZ REIMBURSEMENTS AND ECONOMIC DEVELOPMENT INCENTIVES; AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE NECESSARY OR ADVISABLE TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THE AGREEMENT, AND ADMINISTER THE AGREEMENT ON BEHALF OF THE CITY. Motion was seconded by Ms. Anderson and approved unanimously. (Resolution No. 55-2023 recorded in Resolution Book No. 68.) 17 Conduct a public hearing and consider a resolution 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 a TIRZ No. 12 Reimbursement Agreement and Performance Agreement for such purposes with MSAP 216, LLC, and 42 BP, LP, (collectively the Developer) and the Board of Directors of Reinvestment Zone No. 12, City of Mesquite, Texas (IH-20 Business Park) (TIRZ) regarding the Developer’s construction of an approximately 217-acre Class A Industrial Development in the TIRZ located at 229 Lawson Road, 231 Lawson Road, 1600 Lawson Road, Mesquite, Texas, and the granting to the Developer of certain TIRZ reimbursements, and authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the agreement, and administer the agreement on behalf of the City. A public hearing was held to consider a resolution for a TIRZ No. 12 Reimbursement Agreement and Performance Agreement with MSAP 216, LLC, and 42 BP, LP, and the Board of Directors of Reinvestment Zone No. 12 (IH-20 Business Park), City of Mesquite, Texas. Kim Buttram, Director of Economic Development, stated that Tax Increment Reinvestment Zone (TIRZ) No. 12 was created on June 4, 2018, by Resolution No. 31-2018, to provide a funding mechanism for the improvements needed to develop the land within the TIRZ plan for commercial use. The project and City of Mesquite, Texas Page 10 City Council Minutes - Final October 16, 2023 financing plan was updated per the current project costs and scope adopted by the TIRZ No. 12 Board of Directors on May 15, 2023. The 30-year TIRZ plan estimates $51 million revenue allocated for allowable project costs and $51 million revenue to the City of Mesquite General Fund for all tracts within the TIRZ. Revenue is calculated by the estimated valuation of real property within the TIRZ area which is created by private investment. Ms. Buttram stated that the Airport East project is one of four major developments within TIRZ No. 12, being approximately 217-acres with room for approximately three million square feet of industrial space. The Chapter 380 agreement requires minimum benchmarks for reimbursement of qualifying TIRZ infrastructure projects associated with the development of the site. Ms. Buttram stated that per the proposed agreement, the developer is eligible for up to $8 million reimbursement on approved infrastructure projects and may begin to receive reimbursement upon the construction of at least 250,000 square feet or $30 million capital investment, commencing by August 31, 2032, and completion by December 31, 2035. An additional 250,000 square feet or $30 million capital investment, commencing by August 1, 2037, and completion by July 1, 2042, is required to retain qualification for continued reimbursement. All reimbursements are based on actual costs for approved infrastructure projects accepted by the City of Mesquite. No one appeared regarding the proposed resolution. Ms. Anderson moved to approve Resolution No. 56-2023, 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 A TIRZ NO. 12 REIMBURSEMENT AGREEMENT AND PERFORMANCE AGREEMENT FOR SUCH PURPOSES WITH MSAP 216, LLC, AND 42 BP, LP (COLLECTIVELY THE “DEVELOPER”), AND THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. 12, CITY OF MESQUITE, TEXAS (IH-20 BUSINESS PARK) (THE “TIRZ”), REGARDING THE DEVELOPER’S CONSTRUCTION OF AN APPROXIMATELY 217-ACRE CLASS A INDUSTRIAL DEVELOPMENT IN THE TIRZ LOCATED AT 229, 231, AND 1600 LAWSON ROAD, MESQUITE, TEXAS, AND THE GRANTING TO THE DEVELOPER OF CERTAIN TIRZ REIMBURSEMENTS; AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE NECESSARY OR ADVISABLE TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THE AGREEMENT, AND ADMINISTER THE AGREEMENT ON BEHALF OF THE CITY. Motion was seconded by Mr. Green and approved unanimously. (Resolution No. 56-2023 recorded in Resolution Book No. 68.) 18 Conduct a public hearing and consider a resolution 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 Chapter 380 Agreement for such purposes with Hexagon Purus Texas LLC, for the lease and occupation of the industrial park facility located at 2400 East Meadows Boulevard in the City of Mesquite, Texas, and authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the agreement and administer the agreement on behalf of the City. City of Mesquite, Texas Page 11 City Council Minutes - Final October 16, 2023 A public hearing was held to consider a resolution for an Economic Development Program Chapter 380 Agreement with Hexagon Purus Texas LLC. Kim Buttram, Director of Economic Development, stated that Hexagon Purus Texas LLC, a division of Hexagon Purus Systems Canada Ltd., proposes to lease and occupy the facility at 2400 East Meadows Boulevard, Mesquite, Texas, which is owned by Landmark Companies. The approximately 216,000-square-foot building is part of Landmark at the Meadows, a new industrial park in Mesquite north of U.S. Highway 80. Ms. Buttram stated that Hexagon Purus Texas LLC proposes to open a new vehicle integration facility that will enable delivery of zero-emission heavy-trucks, including battery systems and power modules. The facility would be its first location in the United States. Ms. Buttram stated that the proposed Chapter 380 Agreement requires the company to lease the facility for at least 10 years, receiving a Certificate of Occupancy by August 1, 2024, and assuming operations by January 1, 2025. The agreement also requires the company to have a majority of 225 new jobs be in place by December 31, 2025, with the full 225 new jobs be filled by December 31, 2027, paying an average annual wage of $50,000.00. The agreement also requires capital expenditures of a majority of $40 million in Business Personal Property and Tenant Improvements by December 31, 2024, and 2025, with full expenditures made by December 31, 2027. Ms. Buttram stated that the Agreement provides the Company a tax grant based upon fifty percent Business Personal Property taxes paid annually for seven years, estimated to be a total of $600,000.00, and allowable to exceed this amount based on actual taxes paid within the seven years. Applicant Benjamin Parker, representing Hexagon Purus Texas LLC, presented an overview of the company and products. He stated that Hexagon’s vision is clean-air everywhere and their purpose is to drive energy transformation. In 2016, the company began a battery pack development which is what this new facility will produce. No one appeared regarding the proposed resolution. Mr. Casper moved to approve Resolution No. 57-2023, 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 CHAPTER 380 AGREEMENT FOR SUCH PURPOSES WITH HEXAGON PURUS TEXAS LLC, FOR THE LEASE AND OCCUPATION OF THE INDUSTRIAL PARK FACILITY LOCATED AT 2400 EAST MEADOWS BOULEVARD IN THE CITY OF MESQUITE, TEXAS; AND AUTHORIZING THE CITY MANAGER TO TAKE SUCH ACTIONS AND EXECUTE SUCH DOCUMENTS AS ARE NECESSARY OR ADVISABLE TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THE AGREEMENT, AND ADMINISTER THE AGREEMENT ON BEHALF OF THE CITY. Motion was seconded by Mr. Green and approved unanimously. (Resolution No. 57-2023 recorded in Resolution Book No. 68.) City of Mesquite, Texas Page 12 City Council Minutes - Final October 16, 2023 EXECUTIVE SESSION - COUNCIL CONFERENCE ROOM - 8:08 P.M. Mayor Alemán announced that the City Council would meet in Executive Session pursuant to Section 551.087 of the Texas Government Code to consider commercial or financial information regarding business prospects or projects (Item No. 19 - Discuss economic development agreement for an updated lease of a City-owned property on Main Street in Mesquite); whereupon, the City Council proceeded to meet in Council Conference Room. After the closed meeting ended at 8:37 p.m., the City Council reconvened in Open Session. No executive action was necessary. ADJOURNMENT Mr. Green moved to adjourn the meeting. Motion was seconded by Mr. Boroughs and approved unanimously. The meeting adjourned at 8:37 p.m. Attest: Approved: __________________________________ __________________________________ Sonja Land, City Secretary Daniel Alemán, Jr., Mayor City of Mesquite, Texas Page 13