Construction begins on Lewisville's Coyote Drive-In theater.(Photo by Adam Schrader)

City grants $306,500 in economic incentives to Coyote Drive In

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Published in The Lewisville Texan Journal on Feb. 18, 2016

The City of Lewisville passed an economic development agreement, granting $306,500 in incentives to Coyote Drive In, at its Feb. 15 meeting.

Coyote Drive In will include six outdoor screens centered by a 10,000 square foot climate-controlled cantina, a shaded outdoor pavilion, and a 14,000 square foot mini-golf area and a kids play area.

Nika Reinecke, Director of Economic Development and Planning, wrote a letter to City Manager Donna Barron on why the city should approve the economic development agreement.

“As part of the agreement, Coyote will allow the city to use its property for parking purposes for certain city events,” she wrote. “They will also promote city events by projecting city-provided advertisements on all theater screens before each movie.”

The Fort Worth-based company is projected to create 80 permanent jobs and invest $9.8 million in the drive in theater, according to the agreement. Coyote will sponsor an annual hoteliers meeting or a city event at the facility at a cost not to exceed $1,000 annually.

“That property was always going to be difficult to develop,” said council member TJ Gilmore. “This was a great way to get a unique amenity and bring additional tax revenues to the city.”

In return, the city will waive the Coyote’s roadway escrow fee for Midway Road estimated at $247,000, issue a grant equal to the amount of fees paid for water and sanitary sewer impact fees estimated at $43,054, and reimburse all other fees paid to the city up to the total amount.

James Kunke, a spokesman for Lewisville, explained the roadway escrow fee waiver.

“Coyote will need a turn lane on Midway to pull traffic off the road into their facility, otherwise cars will back up onto the road and block traffic,” Kunke said. “But, we’re going to rebuild Midway Road and widen it. So it would be wasteful for them to build it now.”

Coyote will have to pay the city to build that turn lane, which will be included when the city rebuilds the road. But, the city is waiving the fee for the widening of Midway road which the city had already budgeted for.

The agreement ends on Dec. 30, 2026, unless renewed in writing by both parties. The developer will complete property improvements within 18 months. More time may be granted if, in the city’s opinion, Coyote has made substantial progress on construction and property improvements.

“Coyote Drive In brings a new regional entertainment choice for Southern Denton County,” Kunke said. “We are thrilled they chose Lewisville and think they have a lot to bring to our community and we want to support their success.”