The Harker Heights Council unanimously voted Tuesday to approve a 380 economic development incentive agreement with Gambit Social House, Inc., which will build and operate an entertainment venue for the city along FM 2410.
The project improvements that Gambit has approved will be in the area where Cedar Knob Road ends and then joins FM 2410 and will be completed on or before March 31, 2022 as specified in the agreement.
This family entertainment center project will include a 12,000 square meter entertainment venue that will house a pub, restaurant and 9-hole mini golf course with top golf technology; eight escape rooms and a 400 square meter event space.
Gambit has also agreed to set up three outdoor ax throwing tracks, beach volleyball facilities, other games, and seating areas on the premises.
City Manager David Mitchell said, “This was the type of project that came up during our Exploring New Heights study a few years ago that was number one in terms of what families wanted.
“Second, we don’t have that, so it could easily become regional and bring in people from other parts of the county.”
Mitchell added, “The cumulative amount of grant payments under this agreement will not exceed $ 150,299. Once the cumulative amount of economic development grants (real estate economic development grants plus sales-related economic development grants) is $ 150,299, the city has no further obligation to pay grants under the agreement and the agreement ends “Said Mitchell.
What the council did with this 380 is performance based. The city does not give the builder any money in advance. All funds they produce will be returned to them.
“In other words, right now, the value of the property is the value of the dirt,” said Mitchell. “Gambit will build a structure on this that will add value to this property. The council agreed to reimburse half of the increase in taxes that come into the city over a five-year period, as well as half of the sales tax.
“That means citizens and the city will receive half of the property tax they produce and half of the sales tax during that period, up to $ 150,299,” Mitchell said.
The city used 380 agreements to lure the Market Heights Mall and Seton Medical Center to Harker Heights.
Mitchell, said, “It is important to reiterate that this is discount and performance driven. The city does not distribute treasury dollars to attract a company to the city. These are dollars that are produced by the company and we will reimburse a portion of what they generate to lure them to this place. “
In return for the economic development grants provided for in this agreement, Gambit agrees to make a minimum investment of $ 2 million in the project improvements, increasing the estimated value of $ 2 million (over the estimated property value in 2021) for The ad valorem property tax will be increased for purposes, as certified by the Bell County Appraisal District, from tax year 2022 on the City of Harker Heights tax registers.
Gambit also agrees to hold at least $ 2 million in total taxable assets on the property for each of the five years through 2026.
So-called 380 agreements are approved by the state and allow cities to set up and manage one or more programs for granting or loaning public funds to promote economic development.
Mitchell told the Herald, “It is not referred to as 380 for any reason other than that found in Chapter 380 of the Local Government Code.