City of Sugar Land


As seen in the February issue of Texas Town & City magazine

While many cities focus resources on revitalizing downtown areas, Sugar Land - located southwest of Houston in Fort Bend County -has successfully created one where none existed before. It's known as Sugar Land Town Square. Located at U.S. Highway 59 and State Highway 6 in the geographic center of Sugar Land, Town Square builds on an intersection surrounded by a very successful office and retail environment that includes six million square feet of office and retail, including First Colony Mall.  More than 500,000 people live within eight miles of this intersection; it is an area rich with diversity, activity, and prosperity.

The creation of Town Square accomplished several city goals. It creates a place, or an epicenter, where people gather to shop, eat, attend events, and enjoy night life. It builds on a business district through the addition of high-end retail and Class A office space. And it places in Sugar Land the county's first four-star hotel and conference center, which provides a facility for families to host wedding receptions and facilities for lucrative business conferences and conventions. In short, Town Square is a mixed-used development that creates a lifestyle center where community and commerce can come together.

It's a concept that's been successful in other areas, like Reston, Va., a community with a size and demographics similar to Sugar Land. To some extent, Sugar Land patterned certain aspects of its Town Square after the Reston Town Center, which includes retailers, business, and a hotel/ conference center.

Sugar Land Town Square is the result of a public-private partnership that will have a direct, positive economic impact on the city of approximately $13 million over 25 years. Sugar Land matched its goals with the vision and economic motivations of the private sector to achieve a successful, unique development both for the city and the developer.

Sugar Land's Past

The City of Sugar Land's rich history dates to the 1820s. What began as Mexican land grants to new settlers evolved into a sugar cane plantation and then a company town owned by Imperial Sugar Company. Sugar Land was incorporated in 1959 as a general law city and remained such from 1959 until January 17, 1981, at which time a special city election was held for the purpose of establishing a home rule municipal government.

Sugar Land has since evolved into a premier master-planned city, where a business park, retail centers, and office buildings complement residential areas. The city, located 20 miles southwest of downtown Houston, has grown to a population of more than 70,000 and has been one of the fastest-growing cities in Texas for the last two decades.

Sugar Land is a rapidly growing, energetic city that offers a unique lifestyle for all its residents. Everyday conveniences include exceptional schools, abundant recreational amenities, architectural control, and a preferred southwest Houston location with easy access to major roadways. The city is also home to Fortune 500 companies, corporate headquarters, and aviation-related businesses located at Sugar Land Regional Airport. While Sugar Land has been recognized throughout its history for providing the highest quality of affordable services to meet the needs of its citizens, one thing has been missing.

Sugar Land did not have a town center that's common among many cities across the nation. Well, that's changed. Sugar Land's new city hall is located in the heart of downtown Sugar Land.

An Innovative Approach to Creating Downtown

A product of more than a decade of vision and foresight, Sugar Land Town Square is a 32-acre mixed-use development designed to bring out the best of business, retail, entertainment, and living into one central hub. Town Square not only supports the prosperity and liveliness of one of the fastest-growing cities and counties in the country, it also is carefully planned to accommodate all proportions of business and growth. It offers:

  1. a pedestrian-oriented main street and a central business district within walking distance of stores, services, restaurants, entertainment, and a hotel and conference center;
  2. a 1.2-acre plaza;
  3. 300,000 square feet of Class A office environment;
  4. 200,000 square feet of lifestyle retail;
  5. more than 160 residential condominiums;
  6. a 300-room, full-service Sugar Land Marriott Hotel and 60,000-square-foot Conference Center; and
  7. city hall.

The goal was to create downtown Sugar Land and a central business district and do it around amenities that provide benefits to the community. The Town Square project was the result of years of visionary leadership from elected officials and staff members. Sugar Land utilized an innovative approach to apply five different governmental forms controlled by the city to accomplish this public/private project: the city, a 4A Corporation (1/4-cent economic development sales tax targeted toward traditional economic development), a 4B Corporation (1/4-cent sales tax targeted toward economic and community development programs), the Tax Increment Reinvestment Zone (TIRZ) and the Sugar Land Development Authority (SLDA, a Texas local government corporation).

Financial analysis guided the decision-making on public incentives, ensuring that the project was self-supporting. The private sector is at risk for the costs of the public improvements until key development targets are hit, triggering incentive reimbursements.

The creation of a Town Square TIRZ captures new value within the geographic boundaries of the TIRZ. The new taxable value from real property improvements is reinvested to pay for TIRZ infrastructure. Due to the project needs and the funds available from the TIRZ, the city uses the 4A Corporation to underwrite about half of the value of the improvements. This funding mechanism was crucial as Sugar Land worked with the project developer, Sugarland Properties (now named Planned Community Developers) to make Town Square possible.

Four-Diamond, Full-Service Hotel and Conference Center

The next key component of the project was the creation of the Sugar Land Marriott Hotel and Conference Center, an anchor for the Town Square development. A project that was almost seven years in the making, the Sugar Land Marriott Hotel and Conference Center is a first-class facility with a character and level of quality unique in the metropolitan area.

In 1996, the Town Square project was a vision shared by Planned Community Developers and the city. It was a different project, with only limited funding on the part of the city. But all that changed in 1999 when the project took a new direction with a vision that included what is incorporated today. A hotel and conference center and a new city hall became central components of the project. This is what truly makes the project unique because without these two features, Town Square would be just another retail center.

In researching similar projects, elected leaders and staff traveled thousands of miles, and I'm not speaking metaphorically. A visit was also made to a Town Square project in Reston, Va.

Tours were also made of hotel developments in Norfolk and Portsmouth, Va.; Franklin, Tenn.; and Atlanta, Ga. These were projects of hotel developer Stormont Hospitality. We also toured a Town Square project in Southlake in the Dallas area. These trips created an expectation in our mind's eye of what this project could be. We took the best of what we saw in both suburban and urban cities and developed a vision for Sugar Land Town Square. What really stood out during our tours of these facilities was that each integrated and built on the history and flavor of each city. I believe we successfully built on this innovative approach.

The SLDA was the focal point for working through all the contracts on the hotel and conference center. The city partnered with a private sector hotel developer to construct a hotel and conference center. Because of the design of the project and the need to use one contract for both the public and private development, a public bidding process would not work. The public bidding process guarantees the lowest price and works well for public works projects but not public/private partnerships focusing on innovative new developments like Town Square.

The SLDA allowed Sugar Land to accomplish the project; however, Sugar Land was able to set a guaranteed maximum price through a financing mechanism known as design-build. This enabled the city to identify its financial exposure going into the project. Other keys to this project included:

  1. The city issued $10 million in certificates of obligation;
  2. $1.3 million in cash came from the 4B Corporation;
  3. The 4B Corporation issued $8 million in debt; and
  4. The hotel occupancy tax will be used to fund the majority of the debt.

At approximately $54 million from all entities involved, this was –without exception -the most complex public-private endeavor ever undertaken by the city. It was a project filled with hurdles but worth the effort.

The nine-story, 300-room Sugar Land Marriott Town Square was the first full-service hotel built in Fort Bend County. The adjoining conference center contains 26,500 square feet of meeting space that includes a 15,500-square-foot ballroom, which is among Houston's largest; eight breakout/meeting rooms; a business center; and an executive boardroom.

Sugar Land City Hall

The most recent achievement of the Town Square project was realized on November 22, 2004, with the opening of Sugar Land's new city hall. The city's fourth and final city hall will enable the consolidation of departments and provides expansion for the city's ultimate population of 200,000.

Sugar Land's new city hall was designed to complement the Town Square project. Its location allowed the city and the developer to realize the project's goal of creating a downtown environment in Sugar Land. When our residents see this facility, there should be no doubt that this building is the center of government in Sugar Land. Its traditional clock tower and stately columns are representative of a time-tested federalist architecture that has come to be associated with government institutions. It has been carefully planned to blend into the overall Town Square concept. City hall also helps draw people into the plaza, as events have been planned to occur on the steps of the building facing large crowds.

Sugar Land partnered with the private sector in the construction of Sugar Land's fourth and final city hall at Town Square, with the developer donating the land and the city funding construction. This new facility enables the city to consolidate departments into the geographic center of Sugar Land. City hall is designed for an ultimate building size of approximately 82,000 square feet. The initial build-out of 70,000 square feet accommodates a population of 75,000.

The first floor is designed to welcome the public. It includes a customer service area for permits and payments, a 200-seat city council chamber, the city secretary department, a receptionist area, and conference rooms. The conference rooms honor Sugar Land's history, with such names as Austin, Brazos, Cane, Colony, and more. In consideration of 9/11 and heightened security across the nation, the upper floors of city hall are secured.

The city hall project cost $17.8 million, which included the design; construction; site work and temporary parking; furnishings, audiovisual, and technology; a new phone system; security; and future parking. Funding for city hall was accomplished through a cash payment of $4.7 million, which was 26 percent of the total project cost. The remaining $13.1 million was funded through the issuance of certificates of obligation.

Sugar Land City Hall was completed on schedule and on budget due in pan to the city being one of the first in Texas to use Senate Bill 510 for the construction of a city hall. The legislation enabled Sugar Land to use alternative construction methods other than the traditional sealed bid method. A project team was established prior to design. Team members joining Sugar Land staff included PGAL Architects; D.E. Harvey Builders, Inc.; and Planned Community Developers, Ltd., formerly Sugarland Properties, Inc. All team members, including the general contractor, were selected based on qualifications. The general contractor served in a consulting role, evaluating the design and providing value engineering to ensure quality and the ability to construct within the budget and schedule. The team worked closely in packaging the project, bidding the various construction elements and selecting subcontractors to ensure the best value for residents' tax dollars. These factors contributed greatly to the building's completion on time and within budget.

City hall helps transform Sugar Land Town Square into a downtown community center and builds on efforts to transform the adjacent 1.2-acre plaza into a venue ideal for large community events.

The Importance of the Plaza

Town Square and our new city hall are assets owned by everyone in Sugar Land. Our plaza plays an important role in Town Square's success. We want this development to be a place that brings our community together, and so far, that is exactly what has happened. There are many recent examples that this is already occurring:

  • Citizens of Sugar Land recently gathered in our new plaza to offer prayers for the victims of the South Asia tsunami and offer condolences to their families for their terrible loss. Faith leaders from across our community spoke. Just weeks earlier, many of these same faith leaders blessed our new council chamber.
  • In Sugar Land, faith and diversity is the core and foundation of our community, so we have chiseled these words into the stone that surrounds the statue of Stephen F. Austin in the plaza.
  • Recently, thousands joined together in Sugar Land's new plaza for the city's first  Christmas tree-lighting event on the steps of city hall. People gathered in the plaza to enjoy singing, dancing, and other seasonal activities. That event was followed days later by a Menorah lighting.

These events are truly indicative of the ways in which city hall and Town Square have changed Sugar Land. The goal is to make the plaza an activity-filled arena that facilitates more traffic for our retailers. To this end, many more events are budgeted through Tax Increment Reinvestment Zone (TIRZ) funds, retailer fees, and sponsorships. These include cornerstone events, retail events, and smaller events important to the community, such as: a concert series, performances in the Plaza by local groups, holiday caroling, Girl Scouts and Boy Scouts events, antique car displays, local artists' art shows, and Blackberry Olympics with office-related events, and more.

For a city like Sugar Land, the ability to create a place where citizens work, live, shop, and gather is historic. We've created a sense of place and a source of community pride.

History Preserved in Architectural Elements

While Town Square has forever transformed the face of Sugar Land, its history has been commemorated and preserved in unique design elements of Town Square. The plaza centers around a monument of Stephen F. Austin emerging from the Brazos River, the very river that gave life to Fort Bend and Sugar Land. In fact, the Brazos River brought Stephen F. Austin, who led the settlers that founded Fort on the Bend, later known as Fort Bend. So it's fitting that Stephen F. Austin overlooks the development of downtown Sugar Land.

A series of narratives recounting the history of the Brazos River colonization are etched in the stones spreading from the fountain through the plaza, mirroring the shape of the river itself. The fountain stretches approximately 100 feet with a 25-foot-wide cascading waterway flowing into a 40-foot-diameter basin.

Although our city seems new, in reality there is deep history here, and I believe that what we've created honors the pioneers of the past and inspires the pioneers of tomorrow. So it's fitting that we have immortalized Stephen F. Austin, who will overlook the development of downtown Sugar Land.

Achievements

Even with the factors contributing to past economic downturns, Sugar Land Town Square remained a viable project. Initial projections are starting to come in.

  • The city had minimum thresholds for taxable value, and those are being met: $67 million of property value is on the ground, and the city has a four-star hotel and conference center that didn't exist previously.
  • Town Square's hotel and conference center has hosted conferences and conventions and was fully booked during Super Bowl XXXVIII and the Major League Baseball All Star Game.
  • The sales tax revenues are coming in above expected levels.
  • Town Square has added a new excitement to the city. It is an entertainment venue and has been packed with people desiring to take advantage of the ambiance and businesses there.
  • Nearby Sugar Land Methodist Hospital has begun an expansion that will enable the facility to serve as a regional medical center. Building on current and previous expansions, a $150-million project is scheduled to begin in 2006.
  • Fort Bend Memorial Hermann Hospital has announced its relocation near Sugar Land Town Square.
  • Other nearby businesses and retail establishments have also experienced new tenants and expansions, including Sugar Land's shopping mall.
  • The developer is accelerating plans for additional parking due to the popularity of Town Square with the public.
  • Recent holiday events have attracted thousands, and many more community activities are planned.
  • Construction of the first 150,000-square-foot office building is scheduled to begin in early 2005.

Conclusion

Sugar Land Town Square is an example of Sugar Land's commitment to providing value to citizens through public-private partnerships. While the monetary value in terms of sales tax and other revenue streams is significant and quantifiable, it's impossible to measure the intangible impact of this project. Based on the electricity that's already evident in our Town Square, this project has transformed our suburban community into a city with an identity unlike any other in the region.

The development is getting rave reviews and recognition for architecture and planning. Most recently, Sugar Land was the recipient of an Excellence in Public/Private Partnership Award from the Houston section of the American Planning Association.

The look of Sugar Land has been reshaped for future generations. Sugar Land Town Square is an exciting new mixed-use development with architecture and a land plan that creates a new version of the time-proven downtown concept. *

 

Sugar Land City Manager Allen Bogard joined the citys management team more than 10 years ago as deputy city manager and has served in his current position for over three years. Prior to moving to Sugar Land he served as city manager in Keller and Winnsboro, Texas, and held various positions for the cities of PIano and Dallas. Bogard holds a bachelors degree in political science from the University of Texas at Arlington and a masters of public administration from the University of North Texas.

He is the president of the Sugar Land Town Square Development Authority. He also serves on the board of directors of the Greater Fort Bend Economic Development Council and the Sugar Land Town Square Tax Increment Reinvestment Zone.

Bogard played an instrumental role in the city’s participation in the First Colony Mall development and the now-developing Sugar Land Town Square. He also played a leading role in the creation of Sugar Lands two premier recreation facilities -Eldridge Park and Oyster Creek Park.

 

Copyright © 2000 - 2008 City of Sugar Land