Magnolia City Council approved a Chapter 380 economic development agreement Sept. 9 with BCS Magnolia Place for the development of a 28-acre mixed-use project near the intersection of FM 1488 and Spur 149.

The details

According to city documents, the project will include retail, multifamily and commercial space. A key component of the agreement requires BCS Magnolia to provide at least 100,000 square feet for a Home Depot retail store.

Under the agreement, the city will reimburse BCS Magnolia through sales tax revenue generated on the site once the store receives a certificate of occupancy. Payments are capped at $3.2 million or until a 10-year term, whichever comes first. The sales tax split will give BCS Magnolia 75% of eligible sales tax revenue during the first five years, and 50% during years six through 10.

• Years 1-5: 75% to BCS Magnolia, 25% to the city
• Years 6-10: 50% to BCS Magnolia, 50% to the city

The developer also agreed to make commercially reasonable efforts to involve local small businesses as well as minority-, women- and veteran-owned businesses in the project.

According to documents, the city expects the development to bring new employment opportunities, increase sales and property tax revenue, and establish the area as a regional destination.

Also of note

The council also approved a rezoning for the tract, which changes the boundary lines to allow multifamily and commercial areas. While the zoning was previously in place, the boundary changes meet the needs of potential incoming tenants, according to the agenda item.

The change in the zoning district allocates 11.5 acres of semi-urban residential for 300 multifamily units and 16.9 acres of auto-urban commercial. The map of the rezoned area includes a proposed Academy Sports + Outdoors store.

Learn more

View the Chapter 380 agreement below.