Garland City Council reviews Owl Ice House redevelopment proposal and performance incentives

The Garland City Council convened on May 6, 2025, to discuss a significant redevelopment project at 519 State Street, which aims to transform a long-vacant property into a vibrant community asset. The proposed project, led by the Al Ice House development team, includes plans for a 3,000 square foot expansion, bringing the total space to 13,000 square feet. This expansion will feature a second-story all-seasons patio and rentable event space, enhancing the offerings available to residents and visitors.

A key aspect of the project is the commitment to create a physical connection between the new facility and the nearby Plaza Theater. This corridor will allow theater-goers to easily access the Al Ice House, providing an elevated hospitality experience beyond typical concessions. The development team has also pledged to honor previous agreements with the Jones family, ensuring their continued involvement in the project.

The council discussed a revised incentive structure for the project, which aims to balance public investment with accountability. The Al Ice House team plans to invest at least $3.84 million into the property, which includes purchasing it at its appraised market value of $740,000 and committing to significant improvements. To support this investment, the city proposed a two-part incentive: a one-time reimbursement of $500,000 after the facility has been operational for 30 days, and an annual performance-based incentive of up to $40,000 for five years, contingent on meeting specific benchmarks related to property value and gross sales.

This structured approach aims to mitigate risks for the city while fostering economic growth. The total proposed incentive is capped at $700,000, which translates to approximately $53.85 per square foot, a competitive rate compared to previous incentives in the area.

The council also reviewed financial projections for the project, estimating that the redevelopment could significantly increase property values in the downtown area, potentially generating around $34,500 in property taxes and $46,000 in sales taxes annually over the next 20 years. This revitalization effort is seen as a crucial step in positioning Downtown Garland as a cultural destination within the Bankhead Cultural Arts District.

As the council moves forward with this initiative, the focus remains on transforming the historic property into a community hub that not only enhances local amenities but also drives economic growth and revitalization in the area.