Following is the working proposal for San Marcos city incentives to Lamy-Springfield Mall, Ltd., which is attempting to redevelop Springtown Center. The proposal was presented by Economic Development San Marcos (EDSM), the city’s economic development board, during its open session Thursday afternoon.
In executive session, EDSM decided on a recommendation as to how the San Marcos City Council should proceed. That recommendation has not been made public.
The city council will take up the matter at its July 21 meeting.
(Editor’s Note: Very slight changes are made to the text for consistency with this publication’s punctuation and style.)
To provide funds to redevelop the Springtown Shopping Center (the “center”) into an entertainment-based destination that will attract a mix of users not currently located in San Marcos, including an Alamo Drafthouse style movie theatre. The redevelopment of the center will include the following improvements: updated exterior facades, lighting, signage, pedestrian oriented areas, a pavilion and other design features and/or improvements intended to modernize the center, which serves as a gateway into the City of San Marcos. All terms originate from the effective date of the agreement.
o six-year loan term
o Interest – city’s cost of funds plus 1 percent, with ceiling of 6 percent
o Years one and two, interest accrues and will be payable when loan matures.
o Beginning in year three through loan maturity, developer will make quarterly payments of interest only.
o City takes a first lien position on the Target parcel as security for the loan (“collateral”).
o Any violation of the covenants described below will be a default under the loan.
Chapter 380 Agreement
o Beginning in 2011 and continuing through 2016, 50 percent of any increase in city sales taxes generated by the center that exceeds actual 2009 sales taxes collected by the city from the center in any given year will be paid to developer to reimburse:
+ (i) Interest payments made by the developer, and
+ (ii) Architectural upgrade costs – not to exceed $600,000
o If there is a default under the loan, any funds advanced under the Chapter 380 Agreement will be added to the outstanding balance of the loan and secured by the collateral.
o Developer agrees to provide an outdoor pavilion/gathering area within the center within three years. Such area will be privately owned, but will be made available for periodic, public use.
o Within three years, developer will enter into initial leases of a minimum 50,000 square feet for entertainment uses. “Entertainment uses” shall mean places of business that people gather for entertainment and recreation, including but not limited to, movie theatres, bowling alleys, sports bars, restaurants, night clubs, family entertainment venues, fitness centers and similar type uses.
o Developer agrees to use good faith efforts to hire local businesses to assist in the renovation of the center.
o City council has final approval on any leases for bars of more than 10,000 square feet during the term of the loan.
Other considerations for City Council:
o A portion of the city’s increase in sales tax revenue be used to fund the downtown master plan.Email | Print