Following an executive session during Tuesday morning’s meeting, the Brownwood City Council ratified the Brownwood Municipal Development District Board action from May 19 to approve an incentive package supporting a new mixed-use development project on CC Woodson Road that is expected to bring more than $20 million in capital investment to the community.

The project, led by Dallas/Fort Worth-based developer XForge, will include a new hotel and more than 15,000 square feet of retail and commercial space designed to support continued growth and economic activity in Brownwood.

The development will be located on approximately 2.9 acres along CC Woodson – adjacent to the property that houses Dollar General, Ollie’s and Tractor Supply – and will be combined with additional adjacent property to maximize the overall project site and development potential.

City and BMDD officials approved a $620,000 incentive package to assist with infrastructure improvements and site development costs necessary to support the project and position the site for long-term success.

Brownwood Deputy City Manager Ray Tipton told the Council Tuesday the incentive package features a $200,000 cash payment upon completion of the project, $60,000 payments per year for seven years with those costs going toward site development infrastructure costs, and a 25 percent hotel tax occupancy rebate not to exceed seven years.

Tipton also told Council, “This is in the flood plain so that does greatly increase the amount of sitework that this type of project will have to undergo, and this follows the same model that we have done for every commercial project along that corridor. In addition, we’ll be incentivizing the ‘borrow pit’ land, there’s just a small portion of it that’s useable, but they’ll be to use the remaining dirt out of that property to expand the footprint.”

All incentive funds will come from the BMDD, Tipton added.

“This project represents a major investment in Brownwood and is another example of the momentum we are seeing in our retail sector,” said Mayor Stephen Haynes. “The combination of retail, hospitality, and commercial development will create new opportunities for residents, visitors, and future business growth.”

XForge specializes in mixed-use, commercial, and hospitality developments throughout the Dallas/Fort Worth region and identified Brownwood as a strategic location for continued expansion.

Construction timelines and additional tenant and hotel details are expected to be announced as the project moves into final design, development, and permitting phases.

The project in anticipated to generate new sales tax and hotel occupancy tax revenue, increase lodging capacity, support job creation, and further enhance commercial development opportunities in the area.

Also Tuesday, Council approved on first reading an ordinance granting to Oncor Electric Delivery Company LLC an electric power franchise to use the streets, alleys and other public rights-of-way of the City of Brownwood for the purpose of delivering electricity to the City and its citizens.

The key provisions of the new Franchise Agreement are:

• Grant to Oncor: Gives Oncor the right to use and occupy the present and future streets, alleys, highways, public utility easements, public ways and other public places (“Public Rights-of-Way”) to operate an electric utility system in the City of Brownwood.
• Term: 20-year term beginning on the final passage of this ordinance and ending August 31, 2046.
• Construction of Oncor Facilities: obligates Oncor, when it constructs its facilities in Public Rightsof-Way to obtain the approval of the City’s Public Works Director and clean up and restore the Public Rights-of-Way to its original condition.
• Relocation of Oncor Facilities: obligates Oncor to relocate its facilities at its own expense, if the City is widening and/or performing work on its Public Rights-of-Way or its utilities laid therein. The exception is if the City’s work is solely for aesthetic/beautification purposes or if the City is the customer purchasing electricity and the request is for its own benefit as a customer, then in such case the City shall reimburse Oncor for the relocation costs.
• Franchise Fee: obligates Oncor to pay the City an annual franchise fee equal to the franchise fee factor of 0.003222 multiplied by each kilowatt hour of electricity delivered by Oncor to each customer in the City, plus 4% on all other charges to customers in the City. These are the same fees as the previous franchise agreement.
• Reservation of rights to adopt ordinances controlling City rights-of-way: The agreement expressly reserves the rights of the City to adopt ordinances that would regulate City rights-of-way, in addition to the terms of the franchise. 

The ordinance will come before the Council again for a second and third/final reading before it becomes official.