Community Impact Newspaper previously reported the development would include 3.3 million square feet of distribution and light industrial buildings and 3,000 square feet of retail space; it is also anticipated to provide an estimated 1,300 jobs.
The city also approved the first reading of rezoning of the property to 231.6 acres of light industrial and 8.4 acres of general retail.
As part of the development agreement, the city will create a tax increment reinvestment zone and a municipal management district over the development, according to the agreement. At the Nov. 29 meeting, City Council approved the first reading to create TIRZ 3 over the 240-acre development.
A TIRZ finances development with future incremental tax revenue. City Manager David Esquivel said the TIRZ will issue four bonds in order to fund improvements and development of the property.
The development agreement also limits land uses on the property. According to the agreement, some uses will require a conditional use permit, or CUP, such as an electric power plant, veterinarian clinic, or penal and correctional facilities. In order for the developer to use to land for the purposes requiring a CUP, it would have to get approval from council.
The only use completely prohibited by the agreement is a truck stop.
The development agreement is in place for 45 years, meaning the land uses will be prohibited from those uses during that time period.
The TIRZ is set for 30 years. After 30 years or once the bonded debt is paid off, whichever happens first, the TIRZ will be dissolved and the city will keep 100% of the tax revenue from the property, said Jessica Holoubek, an attorney for Lovett Industrial.
The city is expected to collect about $10,736,730 in ad valorem taxes over the 30-year term of the project, according to the TIRZ documents.
"This is a big step for Tomball," Council Member Lori Klein Quinn said. "It changes a lot going forward."
The city began annexation of the property Oct. 18. If all is approved at City Council's Dec. 6 meeting, annexation, rezoning and the TIRZ will be finalized.
