1. 1 Presented to Housing and Economic Development Committee February 2, 2010 Timberland/Beach Roadway Project

2. 2 Project Description North Tarrant 226 Joint Venture proposes to construct a 85,000 sq. ft Kroger store with an investment of $15,000,000. In order to facilitate the project, the developer will advance the funds and construct the two southern lanes of Timberland Blvd. from North Beach Street to the east approximately 2,000 linear feet at an estimated cost of $520,000.

3. 3 287 35

4. 4 Current Condition of the Property

5. 5 Timberland Roadway Improvement

6. 6 Improvement Subject to the 380

7. 7 Developer Commitment North Tarrant 226 Joint Venture to enter into a Chapter 380 agreement with the City to fund and construct the two southern lanes of Timberland from North Beach to the east approximately 2,000 linear feet. Funding of the Chapter 380 will be contingent on developer executing a Community Facilities Agreement (CFA) with the City.

8. 8 Developer Commitment Construct and open a Kroger store with a minimum investment of $15,000,000 and a minimum of 85,000 sq. ft. by December 1, 2012. Kroger will maintain employment of a minimum of 50-employees during the agreement period.

9. 9 City Commitment Enter into a Chapter 380 Grant agreement with the Developer to provide annual program grants for a 5-year term to reimburse Developer for the cost of constructing the 2-southern lanes of Timberland from North Beach to the east approximately 2,000 linear feet as shown on the Exhibit. The Grant will be based on 80% of the City's $.01 general sales tax revenues and 80% of the City's real property taxes attributable to the new Kroger store starting the year after the first calendar year of operation.

10. 10 City Commitment The cumulative grant will equal the actual cost of the Roadway improvements plus 6% interest applied annually to the outstanding balance. Total grant payments cannot exceed an overall cap of $600,000, excluding interest.

11. 11 Recommendation/Next Steps HED is recommending that the City Council approve an Economic Development Program Agreement with North Tarrant 226 Joint Venture to reimburse the construction of the two southern lanes Timberland from North Beach to the east approximately 2,000 linear feet. HED has prepared an M&C for the February 9, 2010 City Council Meeting.