Since 2003, Sugar Land Town Square has served as the mixed-use center for the community.  The 32-acre development contains over 560,000 square feet of office space, 240,000 square feet of retail, a 300-room hotel and conference center, 167 residential units, three parking garages, Sugar Land City Hall and the Sugar Land Town Square Plaza.  The development is a public-private partnership developed by Planned Community Developers with various public involvement from the City of Sugar Land, the Sugar Land 4B Corporation, Sugar Land Development Corporation, the Sugar Land Town Square Development Authority and Tax Increment Reinvestment Zone No. 1 – with contributions made from additional participating entities Fort Bend County and Fort Bend County Levee Improvement District No. 2. 

Since its opening, the focal point for the development has been the 1.1-acre plaza at the center of the development.  The location serves as a communal gathering place that provides a venue for municipal sponsored events like the Christmas Tree Lighting and Halloween Town, as well as events managed by the Sugar Land Town Square Property Owners’ Association, including concerts, talent shows, movies and watch parties, children’s events, exercise classes and much more.   Last year, the Sugar Land Town Square Plaza had more than 150,000 attendees and over 270 events.  Additionally, while the Plaza is publicly owned through the Sugar Land Town Square Development Authority, it is privately maintained and operated - with the Town Square Property Owners’ Association and developer having invested millions of dollars in the maintenance of and improvements to the plaza and other infrastructure within Sugar Land Town Square over the life of the project. 

The Plaza has undoubtedly achieved its desired purpose in drawing visitors to Sugar Land Town Square, and Planned Community Developers has expressed a desire to reinvest in enhancements to the Plaza that will further improve sales with existing retailers, as well as heighten Sugar Land Town Square’s reputation among prospective tenants.  Planned Community Developers and project owner, Lionstone Investments, have proposed that the project be developed as a public-private partnership. 

Overall, staff recommends pursuing this public/private partnership project due to the tremendous economic importance of this development to the City of Sugar Land and the desire to maintain a thriving retail and office market.  This project would provide the first substantial capital reinvestment in the Town Square and help ensure the development stays strong as newer developments are planned. 

Staff recommends SL4B be utilized for the public investment for the project.  The SL4B is preferred due to its statutorily authorized ability to fund the development of recreational and community facilities and the capacity within the SL4B’s reserve for opportunities. Additionally, even with public participation in this project through the SL4B, the Sugar Land Town Square development is still projected to provide a significantly positive cumulative economic benefit to the City of Sugar Land in total – through property, sales, hotel occupancy and mixed beverage taxes – through the life of the TIRZ, as well as provide a significant long-term annual benefit to the City upon the expiration of the TIRZ in 2025 and when the last bonds are repaid in 2027.