Board members approved a letter of intent between the MDC, City of Midland and Hodges Development Services LP for the project. Members of the City Council will now take up the proposal at its meeting Tuesday.
If – and when – City Council approves the letter, “we can negotiate the final agreement, however long that takes – 30 to 60 days or longer,” said Stephen Lowery, board chairman. He called the vote the green light to get the project moving forward “seriously.”
Though the letter of intent is nonbinding, Lowery said the intent was to outline the project “so we don’t have to come back and renegotiate. I’m comfortable with this,” he said.
The parameters of the proposal had been approved verbally by all parties, noted MDC Executive Director Sara Harris.
The project will consist of a lot for a 60,000-square-foot family cinema and entertainment center, complete with an outdoor music and event stage; a 60,000-square-foot lot to be occupied by a nationally recognized retailer; and platted lots for other general retailers and restaurants. Non-disclosure agreements prevent the disclosure of the specific names involved in the development. The agreement between Hodges, the MDC and City of Midland calls for construction to begin by Sept. 1, 2023, with completion no later than Jan. 1, 2027.
Lowery said that, with full approval of the letter of intent and negotiations toward a final agreement set to begin, “there will be lots of paperwork to read” in the coming weeks.
Hodges will invest $45 million in the project, and MDC is being asked to contribute $5 million to fund the roads and other infrastructure. Harris said those new roads will become city roads once complete.
The letter of intent includes city property tax abatements over a period of 10 years, dropping from 100% the first two years to 20% the final two years. It also includes a city sales tax rebate of 50% generated by the cinema and entertainment center and the retailer as well as the general retailers and restaurants for the first seven years they are open to the public.
