Council members unanimously approved a Chapter 380 Agreement for the office project, which contains incentives worth around $2 million, by a 4-0 vote during the July 21 meeting. Council member Ann Martin was absent from the meeting.
What you need to know
A Chapter 380 Agreement allows municipalities to provide loans or grants using town dollars to help facilitate local or state economic development, according to the Texas Comptroller’s website.
The incentive agreement approved by council members will help facilitate the construction of an office building on the property within Silveron Park, which is being developed by Thompson Realty Capital. The Silveron Park development was initially approved by council in February 2022 and will include 200 multifamily residential units, 30,000 square feet of retail, over 500,000 square feet of office space, 18 acres of open space and 2.5 miles of trails.
The agreement approved at the July 21 meeting specifically applies to a proposed 3-story, 64,000-square-foot Class A office building within Silveron Park, which is included in the first of four phases of the development. Brogan Miller, an associate with Thompson Realty Capital, said the building will also have on-site support services and maintenance, a central lobby and 24/7 security.
Under the agreement, a final plat and site plan must receive approval from the town by Sept. 30 and a certificate of occupancy must be obtained by July 1, 2027. The property owner is also required to invest at least $13 million in improvements for the office building.
The breakdown
According to town documents, the agreement includes allocated funding, including:
- A 50% real property tax abatements for six years and, which is estimated to be $329,353
- A 100% business personal property tax abatements for seven years, which is estimated to be $17,719
- A grant covering 100% of impact fees worth up to $270,147
- A five-year debt service guarantee worth more than $1.35 million
The town should break even in the agreement by the fifth year before the full payback of costs in 12 years, Watson said. Over a 15-year period, the net benefit to the town is expected to be at least $3.7 million, per town documents.
“From an incentive standpoint, to get what you want with a Class A office building, this is a really good incentive structure,” he said.
Also of note
The 64,000-square-foot office building will be part of the first phase of development for Silveron Park, which also includes the 200 multifamily units, a 17,000-square-foot retail strip center, and two or three pad sites, Miller said.
Council member Adam Schiestel said the Silveron Park project exemplified the success of the town’s strategy to incentivize mixed-use and office developments to complement Lakeside while shifting away from warehouse facilities near Flower Mound’s southern border. Officials worked to raise impact fees, but also communicate to developers that the town is willing to offer incentives for the right type of development, he added.
“We have to help make this possible, but if this is successful, it’s going to start to turn that corridor into a Class A office corridor where people are working [and] living in town,” Schiestel said.
