The City of Sugar Land's Strategic Action Plan was approved in January 2025 and prioritizes actively fostering the redevelopment of key sites, so they enhance community amenities and provide forward-thinking housing options. Fostering a commercial and residential redevelopment environment using incentives will allow the City to further drive the types of development and change it wants to see.
In September 2024, the Sugar Land 4B Corporation Board of Directors approved Resolution No. SL4B-R-24-18, adopting a 4B Corporation policy for a Commercial Revitalization Grant Program. This program will promote new or expanded business enterprises by stimulating redevelopment, reinvestment, and aesthetic improvements of aging retail properties and commercial centers in Sugar Land. This pilot program will support the creation of distinct and vibrant activity centers by promoting attractive and welcoming public spaces, renovated storefronts and building facades, and pedestrian-friendly settings.
The program policy allows for commercial revitalization grants to be awarded by a performance agreement outlining a reimbursement of up to 20% for qualifying projects that consist of qualifying expenditures. Qualifying expenditures are defined as portions of the qualifying project that are eligible for reimbursement under Sections 501.103 and 505.152 of the Development Corporation Act.
In January 2025, First Colony Mall, LLC. submitted an application for the Commercial Revitalization Grant. The proposed project includes the installation of a new play area at The Lawn at First Colony Mall along with additional seating at the Lifestyle Center for patrons of the surrounding retail and restaurants. According to their application, the goal if this project is to create a lively, family-friendly space that enhances the shopping experience, boosts foot traffic, and improves the overall atmosphere for shoppers, families, and diners. The project is expected to begin in April 2025 and complete by December 2025.
The terms of the agreement include the following:
- Two (2) year Performance Agreement between Sugar Land 4B Corporation and First Colony Mall, LLC.
- First Colony Mall must complete construction of the project, including qualifying improvements, within one (1) year from the date the notice to proceed is issued by First Colony Mall to its general contractor for the project
- No later than 60 days following the completion date, First Colony Mall must submit to the SL4B receipts and invoices showing that at least $360,000.00 was spent on materials and services in the design and for the construction of the project, including at least $72,000.00 on the qualifying improvements. Within three (3) months of the completion date, First Colony Mall must submit a complete reimbursement package in order to be eligible for the reimbursement incentive of $72,000.00
- Beginning on the completion date, and continuing until at least twelve (12) months thereafter, First Colony Mall, LLC. or Brookfield Properties (Property Manager) will create and maintain at least ten (10) employees at the Lifestyle Center, and/or will have one or more tenants with a total of ten (10) employees. Within 60 days following the end of the reporting year, First Colony Mall will certify to the SL4B that it has complied with the terms of the agreement and provide sufficient documentation to support its certification of compliance
Additionally, there are clawback provisions in place if the minimum number of employees is not created or maintained. The incentive payment of $72,000.00 will be budgeted for in the FY26 budget.
The proposed project and performance agreement terms have been reviewed with the Economic Development Committee. By approving this proposed performance agreement, the SL4B Board of Directors finds portions of the qualifying project eligible for reimbursement under Sections 501.103 and 505.152 of the Development Corporation Act and comply with the Commercial Revitalization Grant program policy and criteria.
Staff recommends approval of the Performance Agreement between the Sugar Land 4B Corporation and First Colony Mall, LLC.