Item 8A1
Southlake Regional Medical Center Resolution 07-016: 380 Agreement
City Council Mtg 2007-11-06 (1)
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Presentation Topics
Based on the Agreement in Principle of February 6, 2007
Executive Summary
Project Overview
Southlake Medical Requirements
Incentives Analysis
Discussion / Q & A
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Executive Summary
Philosophically, incentives are:
Performance based (construct first, reimburse)
Focused on city infrastructure and accelerating construction
PH 1 Annual Tax Revenues (80%, 10-Year)
$240,240 collected, $86,000 retained by City
$900,000+ to CISD
City Costs: +/- $187,889, paid thru 2014
Fees: $482,940 paid, $133,976 waived, $348,964 retained by City
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Project Overview
Phase I
Hospital: 80,000 – 100,000 sf
MOB: 50,000 – 70,000 sf
Ultimate Potential
Hospital: 280,000 sf
MOB: 510,000 sf
Specialty Hospital: 180,000 sf
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Southlake Medical Reqmts.
Construction
Commence by December 31, 2009
Substantial completion by December 31, 2011
Hospital: Min. 80,000 sf, $23M constr. cost
MOB: Min. 50,000 sf, $11M constr. cost
And criteria of:
Min. of $40M in total construction costs, OR
Min. of $50M in combined construction costs and the taxable value of the personal property, OR
Min. of $50M in combined taxable value of real and personal property improvements
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Southlake Medical Reqmts.
Continuously operate and maintain a Hospital and MOB
Name: Southlake Regional Med. Center
Dedicate ROW for Highland
They pay all impact fees (credit against project costs)
Preserve entry area trees per concept plan
Include fountains in PH 1, ponds in future
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City Obligations - Streets
White Chapel: Construct to ultimate A4D between Highland and 114 by end of 2009, Est. CIP Cost = $3.8M
Highland Street: Reconstruct same cross-section with Phase I driveway by October, 2009 [map]. Est. CIP Cost = $184,000
Hospital related turn lane / drive: $30,000
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City Obligations - Water
Highland Water Line: Construct 12” W.L. by October, 2009 [map]
CIP: $250,000
Hospital Related: 2 – 8” W.L. Stubs: $10,000
114 Water Line: Reimburse for cost of 12” W.L. along Property [map] (1,123 L.F.): $151,605
4” Oversizing: $37,901 (normal city cost)
8” Component: $113,704 (incentive)
$113,704 minus impact fee payment of $95,815 = $17,889
50% in FY 2013 and 50% in FY 2014
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City Obligations - Sewer
Sanitary Sewer Capacity: City shall ensure adequate downstream SS capacity [map]
Public Works has examined SS system
Off-Site Sanitary Sewer Line: Reimburse for cost of off-site SS line [map]
Not to exceed $80,000
50% in FY 2013 and 50% in FY 2014
City acquires off-site easement: $0-50,000
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Costs Summary
SH 114 12” W.L. (1,123 L.F.): $17,889*
Off-site 12” Sanitary Sewer: $80,000*
Off-site SS esmt: $0-$50,000
Highland W.L. 8” stubs (2): $10,000
Highland turn lane / drive: $30,000
Total: $187,889
(*50% in FY 2013 and 50% in FY 2014)
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Incentives Analysis - Fees
*Applied as credit against on-site improvements
Waive 50% of administrative fees
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Incentives Analysis - Taxes
Ad-Valorem Taxes: Grant an amount equal to 80% of real and personal property taxes paid related to “Eligible Improvements” for 10 years from date of first C.O. (not including land)
Eligible Improvements:
Hospital, Medical Office Buildings 1-4
Long Term Acute Care Hospital (only if located within the Hospital and occupies less than 25% of the Hospital)
Medically complex patients, not nursing home
Average stay > 25 days
Continuum of care adds to SRMC services
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Incentives Analysis - Taxes
Annual Tax Revenue (w/o land)
AG roll-back payment: $38,000
Annual land tax revenue: $38,237
CISD annual revenue: $933,400 (Ph 1 only)
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Discussion / Q & A
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Highland Street
Summerplace
Peck
Church
Milner
Mike’s
Link
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Water Line Map
Link
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Sanitary Sewer Map
Water
Link