Midland City Council meets for the first time 01/10/2023 with new councilmembers and new mayor, from left, Amy Stretcher Burkes with District 4, Dan Corrrales, At-Large, Robin Poole, At-Large, Mayor Lori Blong, Scott Dufford, District 1, Jack Ladd, District 3 and John Norman, District 2. City of Midland
Tim Fischer/City of Midland
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Stewart Doreen, Staff Writer
The Midland City Council approved an incentive deal Tuesday that they believe puts Midland’s "best foot forward" when it comes to luring Bass Pro Shops to Midland and setting up west Midland for a development boom.
The Midland City Council voted 6-1 on the increased incentives that include property tax abatements, sales tax rebates and a $5.5 million Midland Development Corp. infrastructure investment.
“I think it's going to change Midland for the better for years to come,” District 3 Councilman Jack Ladd Jr. said. “You are going to see a huge difference in people wanting to come here, not just from Odessa but regionally.”
A more dynamic retail and entertainment corridor is the vision city staff, developers and interested Midlanders are attempting to create. After an extended executive session period on Tuesday, city staff showed city leaders a presentation that creates a “focus area” along State Highway 191 to cater to the “population base of approximately 400,000 in Midland and Odessa.
A successful Bass Pro Shops development – if it comes to fruition (there is no guarantee Bass will accept the deal) – is part of 1,000 acres of developable land that will require a significant infrastructure commitment along State Highway 191, including backage roads and an interchange at SH 191 and County Road 1250.
The presentation shows the one anchor store (Bass Pro Shops/ C. Hodges Development Services) leading to no fewer than 10 “satellite developments” northwest of the intersection of State Highways 191 and 158.
And Bass Pro Shops as the development anchor – according to the City of Midland – could mean projected developments costs of $29.3 million and total projected annual sales of $35.4 million in that area alone.
City Manager Tommy Gonzales said Tuesday’s vote was an example of using infrastructure spending that was going to take place any way and getting ahead of development “instead of reacting to development.”
“if we wait five years or 10 years, that $5 million is going to turn into $7.5 million or $10 million,” Gonzales said. “And so, you actually save money by doing it sooner rather than later. And then you also give people what they've been asking for.”
Coy Haynes is a developer from Dallas. He was one of the vast majority of speakers to speak in favor of increasing incentives. He called that area, which is in close proximity to Loop 250, a regional center and said being able to lure Bass Pro Shops will change the intersection for the future.
Haynes said he sold the land to developers and “has 10 businesses ready to (follow) with no tax incentives).
Return on Investment
City staff showed council members a presentation that stated the “return on investment” from the $5.5 million in incentives, the sales tax rebate and the property tax abatements will eventually result in a cumulative net benefit of $12.715 million over 10 years.
At year 10, according to the presentation, the total revenue from Bass Pro Shops is $1.242 million, all other sales total $829,534, and all other property taxes will reach $835,567. In year 11, the total incentives are $0, and the city expects to pocket at least an additional $537,000.
“You got to spend money to make money in the short term,” Ladd said. “Once they're here, and five years have gone by, you're going to see a huge difference in the amount of money that comes into the city coffers.”
The lone vote against increasing the incentives was from at-large Councilman Dan Corrales.