Item 4BCITY OF
SOUTHLAKE
ITEM 413
MEMORANDUM
(March 3, 2015)
To: Shana Yelverton, City Manager
From: Shannon Hamons, CEcD, Director of Economic Development
and Tourism
Subject: Item 4.13: Resolution 15-015, a resolution of the City of Southlake,
Texas, approving the terms and conditions of a 380 agreement
amendment to promote economic development and stimulate
commercial activity in the city with Excel Southlake I LP (Park
Village)
Action
Requested: Approve Resolution 15-015 as noted above
Background
Information: The purpose of this item is to approve Amendment One to an
existing 380 economic incentive agreement with Excel Southlake I
LP. The original 380 agreement approved on March 4, 2014
stipulates program payments for the development of the Park
Village retail center. This is the center at the southwest corner of
Southlake Boulevard and South Carroll Avenue where REI and
Fresh Market are located. You may recall that this item was
discussed with City Council in its Executive Session of February 18,
2015 at which time direction for proceeding was provided.
The original 380 incentive agreement outlines program payments to
the developer for the construction of the corner fountain and
reimbursements for roadway improvements to Carroll Avenue,
Zena Rucker Road, Tower Boulevard and traffic signal installation.
The fountain is being constructed now but all roadway
improvements have been completed and accepted by Public
Works.
The original 2014 agreement stated that in order for the developer
to be eligible for program payments, 150,000 square feet of retail
space had to be completed and occupied by November 1, 2014.
However, due to delays in refining plans and material and labor
shortages during construction, only 109,000 square feet were
occupied as of November 1, 2014. Therefore, the developer has
requested an amendment to the agreement providing for a date of
May 1, 2015 for having at least 150,000 square feet occupied.
As of today's date, more than 168,000 square feet is under roof but
it is not all occupied. It is estimated that more than 170,000 square
feet will be occupied by May 1, 2015.
Financial
Considerations: The original agreement provided for $1,178,118 in program
payments. These payments would be paid from 50% of the general
fund sales taxes and 50% of the ad valorem taxes. It is expected to
take approximately five years to fulfill the program payments, of
which, approximately $516,000 is for the corner fountain and
approximately $622,000 is for reimbursement for roadway and
signal work.
Strategic Link: This item is related to the City's strategy through:
CBO1 - Continue to implement Southlake 2030 Plan by focusing on
short-term initiatives.
CBO5 — Optimize resources through collaboration and partnerships
to reduce costs and add service value
C2 — Provide travel convenience within the City and region
132 — Collaborate with select partners to implement service
solutions
F2 — Invest to provide & maintain high quality public assets
Citizen Input/
Board Review: None
Legal Review: Agreement and resolution review completed by TOASE
Alternatives: 1. Approve the Resolution as submitted
2. Approve the Resolution with amendments
3. Take no action on the Resolution.
Supporting
Documents: - Corresponding 380 Agreement Amendment with
Excel Southlake I, LP
- Resolution 15-015
Staff
Recommendation: Approve Resolution 15-015 as submitted.
Staff Contact: Shannon Hamons, Director of Economic Development & Tourism
RESOLUTION NO. No. 15-015
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, APPROVING THE TERMS
AND CONDITIONS OF A PROGRAM TO PROMOTE ECONOMIC DEVELOPMENT
AND STIMULATE BUSINESS AND COMMERCIAL ACTIVITY IN THE CITY;
AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AGREEMENT WITH
EXCEL SOUTHLAKE I LP, A TEXAS LIMITED PARTNERSHIP, FOR SUCH PURPOSES;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Chapter 380 of the Texas Local Government Code authorizes municipalities
to establish and provide for the administration of programs that promote economic
development and stimulate business and commercial activity in the City; and
WHEREAS, On March 4, 2014 the City Council approved a Chapter 380 Agreement (the
"Agreement") by and between the City and Excel Southlake I LP, a Texas Limited Partnership, to
promote economic development and stimulate business and commercial activity in the City;
and
WHEREAS, On March 3, 2015 the City Council has been presented with a proposed
Agreement —Amendment One by and between the City of Southlake and Excel Southlake I LP, a
copy of which is attached hereto as Exhibit "A" and incorporated herein by reference
(hereinafter called the "Amendment One"); and
WHEREAS, upon full review and consideration of the Amendment and all matters
attendant and related thereto, the City Council is of the opinion that the Amendment will assist
in implementing a program whereby economic development will be promoted and business
and commercial activity will be stimulated in the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS,
THAT:
SECTION 1.
The City Council finds that the terms of Amendment One will promote economic
development and stimulate business and commercial activity in the City and otherwise meet
the criteria of Section 380.001 of the Texas Local Government Code.
SECTION 2.
The City Council hereby adopts an amendment to the economic development program
whereby the City of Southlake will make economic development program payments to Excel
Southlake I LP and take other specified actions, in accordance with the terms outlined in the
Amendment and Amendment One.
SECTION 3.
The terms and conditions of the Amendment One having been reviewed by the City
Council of the City of Southlake and found to be acceptable and in the best interest of the City
and its citizens, are hereby approved.
SECTION 4.
The Mayor is hereby authorized to execute Amendment One and all other documents in
connection therewith on behalf of the City substantially according to the terms and conditions
set forth in the Agreement.
SECTION 5.
This Resolution shall become effective from and after its passage.
PASSED AND APPROVED this the 3rd day of March, 2015
John Terrell, Mayor
ATTEST:
Lori Payne, TRMC
City Secretary
AMENDMENT ONE
TO ECONOMIC DEVELOPMENT AGREEMENT
PARK VILLAGE
THIS FIRST AMENDMENT TO ECONOMIC DEVELOPMENT AGREEMENT
("Amendment One") is executed between the City of Southlake, Texas (the "City") and
Excel Southlake I L.P., a Delaware limited partnership ("Excel"). City and Excel are
sometimes hereinafter referred to collectively as the "parties" or individually as a "party."
RECITALS
WHEREAS, on March 4, 2014, the City adopted Resolution No. 14-003 (the
"Resolution") establishing an Economic Development Program pursuant to Chapter 380
of the Texas Local Government Code ("Program") and authorizing the Economic
Development Agreement between the parties (the "Agreement")- and
WHEREAS, Excel and the City wish to amend the Agreement to extend Excel's
substantial completion deadline for the Minimum Construction Requirements; and
WHEREAS, the City Council finds that Excel has made has made substantial
progress towards the completion of the Minimum Construction Requirements; and
WHEREAS, the City Council finds and determines that this Amendment One will
effectuate the purposes set forth in the Program and Excel's performance of its
obligations in the Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual benefits and premises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Unless otherwise defined herein, the terms used in this Amendment One
shall have the same meaning as given to such terms in the Agreement.
2. Section 4.B.ii of the Agreement is hereby amended by extending the
Substantial Completion date of November 1, 2014 to May 1, 2015.
3. All other terms and conditions of the Agreement, with the exception of the
terms modified by this Amendment One, shall remain in full force and effect.
IN WITNESS WHEREOF, the City and Excel have executed this Amendment
One as of the day of )2015.
ATTEST:
Lori Payne, TRMC
City Secretary
CITY:
THE CITY OF SOUTHLAKE, TEXAS
John Terrell, Mayor
EXCEL:
EXCEL SOUTHLAKE I L.P.,
a Delaware limited partnership
By: Excel Southlake LLC,
a Delaware limited liability company,
its general partner
Name:
Title: