The City Council’s top priority is redevelopment and preservation of the Imperial Historic District, particularly the iconic Char House. The former Imperial Sugar site was the start of what would become Sugar Land, as it once played a vital role in the City’s economy. Imperial Sugar created jobs and then homes, and as it grew, this economic engine was the cornerstone of our community – a “company town” – for generations. Today, Sugar Land is still a “company town,” serving as a major employment hub in the Houston region with more than 70,000 jobs. While the factory is no longer operational, the resolve to preserve and honor the City’s history is stronger than ever. It is for this reason that preserving the Char House and redeveloping the Imperial Historic District and its adjacent properties is one of the City Council’s top priorities.
Over the past 20 years, there have been multiple unsuccessful attempts by private parties, sometimes in partnership with the City of Sugar Land, to redevelop and preserve the Imperial Historic District. We know this has been frustrating for the community, so the City is pursuing a new approach to this high-priority project. The City will be working to acquire the properties, prioritize the preservation of the Char House, and, in the future, identify the best path and partner to bring the City’s vision for the development to reality. To move forward with project implementation, the City has identified funding needs for land acquisition, Char House preservation and other related capital expenses.
The City has a long history of using a variety of financing tools to maximize its ability to be opportunistic when it comes to delivering high-priority economic development projects within the community. The City has determined that the most economical means of financing the costs of the Facilities, as defined in the agreement, is for the City to issue its Combination Tax and Revenue Certificates of Obligation, Series 2025 (the “Certificates”) in an amount not to exceed $50,000,000, with the agreement of the Sugar Land 4B Corporation to make payments to the City from the Additional Sales Tax in amounts sufficient to pay an amount not to exceed fifty (50) percent of the debt service on the Certificates as and when it becomes due.
Staff recommends approval of Resolution NO. 25-21 to authorize the City of Sugar Land to enter into an agreement with the Sugar Land 4B Corporation regarding funding of site improvements in the Imperial Historic District for Economic Development purposes.