Southlake council approves master development agreement for Shivers Farm

Southlake Director of Economic Development and Tourism Daniel Cortez said approval of the master development agreement does not commit the city to create a tax increment reinvestment zone or public improvement district for the development. The agreement outlines the structure of any potential PID, TIRZ or Chapter 380 Agreement, he added. A Chapter 380 Agreement allows local municipalities to provide loans or grants of city funds for economic development, per the state comptroller’s website.

“Each mechanism would require a separate approval from City Council,” Cortez said. “A small nuance here is the Chapter 380 [Agreement], since it is part of the TIRZ, would come forward as part of the TIRZ approval through the project and finance plan.”

The maximum value of any economic incentives through the TIRZ, PID or a Chapter 380 agreement is $18.85 million, according to city documents.

Based on terms of the agreement, the developer would be required to invest at least $127.9 million and create at least 200 full-time equivalent jobs by June 30, 2028, while maintaining at least that many positions for the duration of the agreement. Per city documents, the developer plans to create 265 full-time equivalent jobs.

Additionally, the property must have a minimum taxable value of $80 million for the 2031 tax year.

Diving deeper

According to city documents, the developer would make several public infrastructure improvements to develop Shivers Farm.

Based on the agreement, those costs could become eligible for contributions through a TIRZ or PID created for the site.

The developer would be required to complete public improvements, private infrastructure and all improvements for the full construction of the commercial portion by Dec. 31, 2028. The same requirements would be necessary for the full construction of the residential portion by June 30, 2029, per city documents.

What they’re saying

Mayor Shawn McCaskill and several other council members voiced concern about the creation of the PID, which could levy assessments on the residences within Shivers Farms for improvements.

“This is beyond heartburn for the residential PID,” McCaskill said. “I would look during our break in July at other options for how you guys can make the sausage because I’m not going to be in favor of the PID.”

What’s next?

Cortez said the agreement requires the developer to pull a construction permit within six months of its execution or no later than Jan. 1, 2027.