Agenda

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Item # 7.

Council Meeting

Meeting Date:	12/14/2021
Department:	Economic Development
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Leverage Addison's assets to grow and expand placemaking business programs and events that will set Addison apart to attract talent and businesses

AGENDA CAPTION:

Consider Action on a Resolution Approving an Economic Development Program Grant Agreement with Mexico Foods LLC (d/b/a El Rancho, Inc.) and Authorizing the City Manager to Execute the Agreement in an Amount Not to Exceed $50,000.

BACKGROUND:

On September 28, 2021, the City Council directed the City Manager to negotiate an incentive grant agreement with Mexico Foods LLC, d/b/a El Rancho, Inc. for an amount of $50,000 for the company's headquarter relocation to Addison.

As part of the agreement, El Rancho will lease a space of approximately 21,910 square feet at 16775 Addison Road better known as the Atrium at Bent Tree Office Building. The company will make an estimated $1.2 million investment in tenant improvements and other office space expenditures. The company will employ at least 100 full time positions with an average annual wage of at least $78,000.

The grant provided by the Town is performance based and will be paid in three installments pending milestones related to space occupancy, capital investment, number of jobs created, and average wages that must be met by the company as highlighted in the attached agreement. On September 28, 2021, Council provided direction on an incentive amount but did not authorize the City Manager to execute the agreement. Authorization is now being requested in the attached resolution to have the City Manager execute the agreement. The funds for the grant have been encumbered in the Economic Development Fund, and the attached agreement has been reviewed and approved by the City Attorney.

RECOMMENDATION:

Administration recommends approval.

Attachments
Resolution - El Rancho Economic Development Incentive Agreement