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Item # 4.h.

2025 City Council Regular Meeting

Meeting Date:

01/27/2026

Department:

Economic Development

Key Focus Areas:

Economic Development and Revitalization

AGENDA CAPTION:

Consider action on a resolution approving an Economic Development Program Grant Agreement with Landmark Quorum Holdings LLC in an amount not to exceed $200,000 and authorizing the City Manager to execute the agreement.

BACKGROUND:

The Landmark office building, located at 14800 Landmark Boulevard, is a 160,000-square-foot, Class A office property constructed in 1985 and situated within the South Quorum corridor, an area with a high concentration of Addison’s older office inventory. The building currently has a taxable value of approximately $17 million and is approximately 35% vacant.

The property owner, Landmark Quorum Holdings LLC, has committed to investing a minimum of $2 million in capital improvements to modernize the building and enhance its competitiveness in the regional office market. The proposed improvements include a comprehensive first-floor lobby renovation, upgraded tenant amenities and conference space, restroom modernization, fifth-floor tenant lounge and conference facilities, and construction of new spec suites. These improvements are designed to provide enhanced amenities that support existing tenants, attract new national and regional tenants, support higher lease rates, and reduce vacancy to approximately 15% or less.

To support this reinvestment, the Town has negotiated an Economic Development 380 Grant Agreement providing a one-time grant of up to $200,000, structured as a reimbursement tied to completed improvements and payable upon successful completion of construction and verification of eligible project costs. The incentive represents approximately 10% of total project costs. The agreement includes standard performance requirements, quarterly reporting obligations related to building occupancy, tenant mix, tenant names, and the square footage occupied by each tenant, joint marketing participation, and a five-year term with clawback provisions if the company fails to comply with the agreement.

The project aligns with Council’s Strategic Objective 2.1 to revitalize declining areas through targeted economic development tools and supports reinvestment in Addison’s aging office inventory.

FISCAL IMPACT

Proposed Grant: Up to $200,000 (one-time reimbursement upon project completion)
Private Capital Investment: Minimum $2.0 million
Leverage Ratio: Approximately 10:1 (private to public)
Funding Source: Economic Development Fund

RECOMMENDATION

Staff recommends approval.

Attachments

Resolution - ED Grant Agreement (Landmark Quorum Holdings)