Item 10DKey Agreement Provisions
Funding for upfront construction will be financed with
private financing (Developer funding);
Agreement will be structured so that $7.5 million will
be paid to developer out of real property and
business/personal property taxes, once one-to-one
supporting values have been established "on the
ground" in the Grand Avenue project;
Land conveyance structured to cover rollback taxes;
Sales tax incentives are performance based —
Cooper Stebbins will receive 80% of sales taxes
generated in Grand Avenue development.
Payments will sunset in December 2018. No
obligations will be incurred beyond the life of Tax
Increment Reinvestment Zone #1.
Developer Commitments
Developer will privately finance
and construct an additional Real
Property Tax Value of over $50
million -Grand Avenue addition to
Southlake Town Square
• Hotel Description
• Restaurant Particulars
• Retail Particulars
• Related Infrastructure
• Park dedication and
development
Developerwill assume upfront
financial risk
Developer will provide clear title to
park land, public ROW, and
parking garages in exchange for
financial consideration.
�► City Financial Incentives
The City will offer an amount equal to the ad
valorem tax generated by the Grand Avenue
project during the project period (est. $7.5
million), provided that the developer meets
proposed timeline. Delays will result in an
incremental reduction of the payment.
The City will provide an amount equal to 80% of
the city's 1 % sales tax during the project period
via a 380 agreement. ($9.0-gross receipts
estimated)
Community Benefits — Tax Revenues
• Tax benefits derived through 2018*
® 1 % Sales Tax (20% retained) $ 1.6 million
Crime Control Sales Tax $ 5.3 million
. SPDC Sales Tax $ 5.3 million
CISD Property Taxes $14.4 million
P Hotel/Motel Taxes $ 6.0 million
*Estimated based on Developer's forecast
Parking Garages
• Land conveyed prior to construction
• City will own and operate
• Over 1,600 new parking spaces created
for public use
• City will approve design and specifications
Conclusion
Completion of 350,000 SF on new
improvements (retail, hotel, theater)
• Full payment of City/TIF debt associated with
District by September 30, 2018
• Revenues from the District utilized for
underwriting limited to:
Real Property Tax Revenues (excluding CISD)
. City Business Personal Property Revenues
. 1 % City General Fund Sales Tax Revenues