Editor's Note: This article, originally published April 19, 2021, has been updated to add the details of the two Chapter 380 agreements, a previous $2.25 million grant to the property's developer, and the details of a $250,000 settlement payment in 2017 to release the property from a previous performance agreement.
FORNEY, Texas — Kohl's received approval of two Chapter 380 economic incentive agreements for a newly proposed Forney location.
The two Chapter 380 agreements were approved by the Forney City Council after an executive session during their April 6, 2021, meeting, and provide for more than $1.9 million in grants and credits. Before those approvals, the Forney City Council had already approved another $2.25 million grant for the property's developer and paid out a $250,000 settlement to release the property from a previous performance agreement.
Kohl's is proposed within the Forney Market Retail area, which is located within the Victory at Forney development south of Kroger and north of U.S. Highway 80.
A request for additional details, construction timelines, and proposed opening dates has been made with Kohl's. Its unknown if the department brand intends to open its traditional 85K, 64K, 55K concepts or its rural, dense-urban 35K prototype. This story will be updated with any additional details.
One of the Chapter 380 agreements approved by the council calls for a minimum of 40,000 square feet of retail space. In exchange, the City of Forney has agreed to provide a $1.9 million grant to Kohl's in the form of a lump sum payment within 30 days of Kohl's obtaining its certification of occupancy.
Kohl's also agrees to create a minimum of 10 new full-time equivalent positions.
The second Chapter 380 agreement grants Kohl's 50% of all impact, permit, and permit review fees in the form of a credit against any invoice due to the City of Forney for the fees for the improvements to the premises.
Previously, the Forney City Council granted a $2.25 million reimbursable grant for the Victory at Forney development, in August 2020. The Trailhouse Park Planned Development, just northwest of Victory at Forney and Kroger, received a similar grant. More on that story, here.
In June 2017, the Forney City Council approved a "Compromise Settlement and Release Agreement" to amend a previously-approved performance agreement between the Forney Economic Development Cooperation (EDC) and HP Forney 548 Partners, LP, a subsidiary of Hunt Properties, Inc..
HP Forney 548 Partners had received approval of a performance agreement to obtain a rebate on a portion of its sales tax collections over a 30-year period for the Kroger development. The original agreement encompassed Phase I, which included the Kroger development, and Phase II, which encompasses the Victory at Forney and Trailhouse Park developments.
While HP Forney 548 Partners purchased and developed Phase I, it did not acquire the remainder of the property in Phase II. In approving the settlement agreement, the Forney City Council authorized a $250,000 lump sum settlement payment from the EDC to HP Forney 548 Partners to remove Phase II from the performance agreement.
Chapter 380 Agreement between Kohl's and City of Forney by inForney.com on Scribd
