Council approved a Chapter 380 Agreement and a purchase and sale agreement by a 4-0 vote during its July 21 meeting. Council member Ann Martin was absent from the meeting and did not vote.
The overview
The approved agreements outline the parameters for the sale of around 22.2 acres to AAB Venture Capital to develop the site, which is located along Cross Timbers Road near the proposed intersection with Denton Creek Boulevard. AAB Venture Capital has proposed a Hill Country-style retail development that should complement what has already been built in the Canyon Falls area, said Clint Holland, a project representative.
AAB Venture Capital will acquire the property for nearly $7.98 million, according to town documents, and the town has an option to repurchase the property if certain development conditions are not met.
Based on a staff presentation, there are two possibilities for the site, including one option that is anchored by an entertainment business, such as Pinstack, and another anchored by a boutique grocery store, such as Sprouts. Director of Economic Development Ray Watson said the entertainment option could generate $26 million in annual revenue and about $2.1 million in annual sales tax collections.
The grocery-anchored proposal could produce more than $28 million in annual revenue and around $2.3 million in annual sales tax collections.
Diving deeper
Watson said the Chapter 380 Agreement helps cover the transfer of the property’s ownership, which would otherwise require the town to market the property for sale. It also outlines allowable types of development, such as capping the number of restaurants at three and requiring the entertainment venue or boutique grocery store.
Based on the sale agreement, the town will be responsible for paying $250,000 in commission for the sale. The agreement also requires the developer to invest at least $10 million into improving the property and maintain a taxable value of at least $10 million for 10 years starting in 2029.
What they’re saying
Council member Brian Taylor said having this development meets the needs of current and future residents in the area.
“We look forward to seeing what all the opportunities are,” Taylor said. “There is a need for restaurants [and] entertainment, especially with more residents coming.”
For either the grocery store or entertainment options, Holland said there is a fit within western Flower Mound.
“The idea is to market both and see where we can get the most traction,” he said. “I could see a Sprouts or a boutique [grocer] fitting very well there. On the entertainment side, we’re working with Pinstack already.”
What’s next
Under the agreement, the developer has to obtain the first certificate of occupancy in the development within 48 months, officials said.
Holland said the development team plans to market the property for both a grocery store or entertainment venue option. The retail space will likely be developed in several phases, Holland added.
“Time is of the essence for you guys and for us,” Holland said. “We don’t want to sit on raw land forever. We’d love to take advantage of all the development happening out there and find the right tenants that make a successful anchor.”
