One of the City Council’s top priorities is preserving and redeveloping the iconic Imperial Char House. The Imperial Sugar site was the start of what would become Sugar Land and once played a vital role in our City’s economy. Imperial Sugar created jobs and then homes, and as it grew, this economic engine was the cornerstone of our community, our “company town,” for generations. Today, Sugar Land is still a “company town,” serving as a major employment hub in the Houston region with over 70,000 jobs. And although the Imperial Sugar site is no longer in operations, the resolve to preserve and honor the City’s history is as strong as ever. As such, preserving the Char House and redeveloping the Imperial Sugar site is one of the City Council’s top priorities. 
 
On December 1, 2022, the City of Sugar Land and PUMA Development jointly announced a proposal to preserve and begin redevelopment of the Imperial Char House. PUMA, a Houston-based boutique development firm specializing in creating experience-driven, mixed-use communities, has requested support from the City of Sugar Land and Sugar Land Development Corporation (SLDC) toward the preservation of the Char House and eventual development of the remainder of the Imperial Historic District.
 
The proposal to redevelop the Char House is in its very early stages, with further due diligence to be completed before PUMA Development proceeds with closing on the property. PUMA’s first financial support request from the City and SLDC, is $5 million toward pre-development costs, including various engineering (geotechnical, civil, traffic, acoustic, etc.); architectural, site planning and historic tax credit consulting; and construction costs associated with preserving and redeveloping the Char House. The City held a workshop to discuss the project and framework of the reimbursement agreement on December 20, 2022, and does expect future financial support requests to bring this project to fruition. 
 
The reimbursement agreement is only focused on the preservation and redevelopment of the Char House. It includes pre-development and construction costs associated with the Char House, the engineering building, and approximately 1.5 acres of land on which these buildings sit. Funds will only be disbursed on a reimbursement basis and for only costs and deliverables outlined in Exhibit A of the agreement. To manage the City’s risk in this project, the reimbursement agreement has been split up into three main funding stages as described below:

Other terms of the agreement include: 

• Expenditures incurred prior to the execution of the Reimbursement Agreement may be reimbursable within 30 days of the agreements execution if listed on Exhibit A and invoices and proof of payment are presented. 

• If PUMA’s purchase agreement is terminated prior to closing, all reports and related work product created using the $1.5 million will become property of the City and SLDC. 
  
  
• City and SLDC will require copies of the executed Architect’s Agreement and Construction Contract and will not allow amendments to the agreements without City and SLDC’s prior written consent, which will not be unreasonably withheld. 
  
  
• A written request, Certificate of Payment, and lien waivers will be required for fund disbursements.   
  
  
• SLDC and City will retain a Project Inspector to make periodic inspections of the property and there will be limitations on change orders. 

The reimbursement agreement for pre-development and construction costs has been finalized. Staff recommends the City Council and Sugar Land Development Corporation approve a reimbursement agreement in the amount of $5 million with PUMA Development, Inc. for pre-development and construction costs associated with the preservation and redevelopment of the Imperial Char House.