City inks major development deal
By Traci Chapman
A property that has been a blight on Mustang’s busiest intersection is about to get a major facelift, bringing with it at least one national tenant, city officials said.
On Tuesday, the six Mustang Council members present unanimously approved a development agreement between the city and KG Holdings/W.E.P. Land Holdings for development of the former Wal-Mart/Ace Hardware store, located on the northeast corner of state Highway 152 and Mustang Road. Ward 6 Councilman Donald Mount was absent.
Ken McGee, developer of the project, has entered into a lease with Stage for a portion of the existing store. The lease is expected to be finalized Feb. 14, broker Chris Reed said Tuesday, with construction beginning as early as Feb. 17, he said. Stores are expected to be ready for occupancy sometime in the third quarter, Reed said.
“They’ve basically just been waiting for us,” Mayor Jay Adams said.
In addition to a complete remodel of the existing 34,998-square-foot building already onsite, McGee plans to add almost 8,000 square feet to the complex, allowing for the addition of several more retail stores, Reed said.
“We have interest from another national tenant for about 5,000 square feet and we’re speaking to several others as well,” he said.
Announcements on additional tenants could be forthcoming in the near future, Reed said.
McGee has lived in Mustang for about 14 years, Reed said. His company also owns West End Pointe in Yukon, which includes the complex housing West End Pointe 8, as well as the shopping center where Lowe’s, Kohls and Staples are located, he said.
“We wanted to do something in Mustang, bring something to the local community,” Reed said.
The city offered financial incentives to bring the complex to Mustang, according to the development agreement approved Tuesday. Those incentives, totaling up to $580,000 over a 10-year period, will “discourage the loss of existing businesses and jobs, increase sales and ad valorem taxes, promote development and diversification of the economy, aid in the elimination of unemployment and underemployment, support expansion of commerce, increase the city’s and the public’s economic security, promote the public good and welfare, and generally promote economic growth and prosperity” in Mustang, the agreement stated.
Mustang’s long-range plan has targeted areas of state Highway 152, and specifically two aging and dilapidated strip centers located at its intersection with Mustang Road, Adams said. McGee’s development will go a long way to begin revitalization of that area, the mayor said.
“We’re hopeful this is just the first of many changes to those spots,” he said.
Under the agreement, Stage is required to generate at least $58,000 annually for the first 10 years. In return, the city will pay monthly installments of about $4,833 – $58,000 annually – to KG, beginning in December 2014. That date could fluctuate slightly, should construction be delayed by weather or unforeseen circumstances, City Manager Tim Rooney said. Incentives are a common tool used by cities to obtain retailers and have been used in Mustang many times, officials said.
Rooney and Robert Coleman, Mustang community development director, as well as several staff and council members worked “long and hard” to make the new development a reality, Adams said.
“We really need to applaud our staff, as well as our council, for their forward thinking in moving our city into the future,” the mayor said. “It’s a real bonus that we have a local developer, someone who really believes in our city, who has brought this to Mustang.”