SUBJECT
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Authorizing the Fourth Amendment to the Chapter 380 Economic Development Performance and Program Grant Agreement between the City of Laredo, Texas and Laredo Outlet Shoppes, LLC, originally executed on September 2, 2014, to amend certain terms and conditions of the Agreement, including an extension of the Agreement term, and authorizing the City Manager to execute all necessary documents.
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PREVIOUS COUNCIL ACTION
The original agreement was passed on September 2, 2014. The first amendment was executed on February 24, 2016, the second amendment was executed on April 21, 2016, and the third amendment was executed on April 22, 2021.
BACKGROUND
The property is located on 1600 Water St and approximately 7 acres of property. The propose is to redevelop the existing retail center located on the property into a retail outlet shopping mall and operate and maintain the redeveloped retail outlet shopping mall along with associated infrastructure.
There have been 3 amendments to this agreement.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Moderate
Supporting goal(s)/policy(ies):
Goal 4.1 - Create a sustainable economy.
(Viva Laredo Comprehensive Plan, Chapter 4 - Economic Development)
"Create a sustainable economy."
Source: Viva Laredo City of Laredo Comprehensive Plan. (Chapter 4 - Economic Development)
Relevance:
Continuing a performance-based economic development agreement with Laredo Outlet Shoppes supports the City's long-term economic sustainability through continued private investment, employment, and commercial activity.
Policy 4.1.1 - Diversify and strengthen the local economy.
(Viva Laredo Comprehensive Plan, Chapter 4 - Economic Development)
"Diversify and strengthen the local economy."
Source: Viva Laredo City of Laredo Comprehensive Plan. (Chapter 4 - Economic Development)
Relevance:
Retail destinations such as Laredo Outlet Shoppes contribute to economic diversification by expanding the City's retail sector, attracting visitors, and generating sales tax revenue and employment opportunities.
Policy 4.3.1 - Support business retention and expansion.
(Viva Laredo Comprehensive Plan, Chapter 4 - Economic Development)
"Support business retention and expansion."
Source: Viva Laredo City of Laredo Comprehensive Plan. (Chapter 4 - Economic Development)
Relevance:
Amending an existing performance grant agreement reflects continued support for an established commercial investment and is consistent with policies encouraging business retention and expansion within Laredo.
Summary of alignment:
The proposed Fourth Amendment to the Economic Development Performance and Program Grant Agreement demonstrates Moderate alignment with the Viva Laredo Comprehensive Plan. Continuing an incentive agreement with Laredo Outlet Shoppes supports the Plan's economic development objectives by encouraging ongoing private investment, sustaining commercial activity, and reinforcing business retention efforts.
Because the agenda item authorizes an amendment to an existing agreement rather than establishing a new economic development initiative or implementing a specific Comprehensive Plan strategy, the alignment is best characterized as Moderate. The item primarily advances broader planning themes of economic development, business retention, tax base growth, and employment opportunities, but the agenda description alone does not demonstrate direct implementation of a specific verbatim policy sufficient to warrant a Strong alignment.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends that City Council approves this item.
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Fiscal Impact
Fiscal Year: 2025-2026
Budgeted Y/N?: N/A
Source of Funds: N/A
Account #: N/A
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
There is no financial impact.