The termination was requested by Old Town Development, so that the company could sell the land and the building tied to the agreement, according to town documents. The property, which is the site of restaurant Mi Dia, is located at 2601 W. Windsor Drive, Flower Mound.
According to town documents, the agreed termination of the Chapter 380 agreement will not affect Mi Dia, which will continue to operate.
The town granted the Chapter 380 agreement, also known as an economic incentive agreement, to Old Town Development Aug. 3, 2015. As part of the agreement, the town sold the property to Old Town Development for $140,000 with an understanding that Old Town Development would construct a 7,280-square-foot dining space and sign Mi Dia as the sole tenant.
“To date, the majority of obligations of Old Town Development have been met, with the exception of the full payment of the $140,000 (the land price) payable to the town, which, per the terms of the agreement, will be paid back to the Town through the 1% sales and use tax generated by the restaurant,” a town document stated.
Old Town Development still owes $53,484.37 on the land payment, officials said. Economic Development Director Andrea Roy said at the Nov. 18 meeting that the town expects the balance will be paid through the sales and use tax generated by the restaurant in less than two years.
However, to ensure that the town gets full payment, the agreed termination states that Old Town Development representatives Chris Gordon and Justin Springfield will place the remaining balance in escrow with the town.
If the sales and use tax generated by the restaurant has not paid the property payment in full by Aug. 15, 2022, the town will take the unpaid amount from escrow and return the remaining balance to Gordon and Springfield.