This project involved the negotiation of a Chapter 380 Agreement for the redevelopment of a private shopping center in Tomball, Texas. When the developer purchased the property, it was only 32% occupied and in steep decline. Ms. Donatto acted as Project Manager to work with the developer and the municipality to negotiate a Chapter 380 Agreement to allow for reimbursement of improvements to the Center to hasten its growth. Key tasks included: research on historical property values, detailed financial modeling, and negotiating of terms with the Mayor, City Manager, and Economic Development Corporation.
Plans for the Center included a completely new facade, improved signage, and landscape beautification. There will be a new, high-quality tenant mix, including national restaurant chains and a major specialty goods retailer. The team negotiated a 3-year “transition” period while current tenants’ lease terms are fulfilled, and a 10-year “effective” period for this Chapter 380 Agreement. Terms of the agreement included: 75% of Sales Tax increment revenues and 100% of Property Tax revenues with a cap of $2.1 million over the 13-year term.