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BM 2002-04-29 EcDevCOPPELL ECONOMIC DEVELOPMENT COMMITTEE April 29, 2002 MINUTES The Coppell Economic Development Committee met at 6:00 p.m. on Wednesday, April 29, 2002, at the Coppell Justice Center, Main Conference Room, 130 Town Center Boulevard, Coppell, Texas. The following were present: Chairman Bill Rohloff, Vice Chairman Gary Roden, Bruce Bradford, Jay Thompson, Dennis Onalaja, Tim Brancheau, Kris Fichtner, Mohamed Elmougy, Mary Ann Kellam, Robert Key, Councilmember Jayne Peters, Councilmember Marsha Tunnell, City Manager Jim Witt, Chad Beach, Gary Sieb and Andrea Roy. Call to Order. The meeting was called to order at 6:05 p.m. Approval of Minutes It was moved by Jay Thompson and seconded by Tim Brancheau that the minutes of the April 3, 2002 meeting be approved as recorded. The motion passed unanimously. Request by Texas Dugan, L.P. for tax abatement and/or sales tax rebate for a 158,000 square-foot office/warehouse building (Uline) on 11.8 acres of land located along the west side of Freeport Parkway, north of Bethel Road. Bob Rice of Duke Realty presented to the Committee. Mr. Rice described the proposed facility, which is a build to suit for Uline; a family oriented company that offers all types of shipping supplies. Uline's distribution facility will generate a significant level of sales tax and house a notable amount of inventory that is not subject to Freeport exemption. Mr. Rice further indicated that the industrial market is extremely competitive at the present time and that a sales tax rebate and/or tax abatement will assist in bringing Uline to Coppell. If Coppell is chosen, Uline will sign a seven (7) year lease, with the possibility of an additional ten (10) years. Chad Beach followed with the review of a summary of the results of the econometric model, indicating that the value of the building (as represented) does not reach the minimum $5.5 million in value needed to qualify for a standard 5-year, 75% tax abatement. However, this facility is estimated to generate approximately $17 million in sales that will be subject to the local sales and use tax. It was moved by Jay Thompson and seconded by Bruce Bradford that Duke Realty (and Uline) be granted a 5-year, 75% tax abatement so long as $170,000 is generated to the City as a result of the 1% sales tax and a sales tax rebate be granted which would refund a maximum of $50,000 (again-if $170,000 is generated to the City as a result of the 1% sales tax). The motion passed unanimously. (It was later indicated by Duke Realty that the value of the building will meet the $5.5 million minimum, which will no longer require the tax abatement be linked to the amount of sales tax generated.) Discussion regarding the Committee hosting a retail/office/industrial professional organization's functions to market the City of Coppell. Mr. Sieb briefed the Committee on the status of the Coppell video and suggested that the Committee wait until this Fall to host/sponsor a NAIOP or any other organization's meeting, allowing adequate time to film new footage and update the video. The Page 1 of 2 Committee indicated that we should proceed with a Fall sponsorship once video completion dates are finalized. Committee member Jay Thompson indicated that he is still trying to work with The Real Estate Council as a marketing option for the City. He will continue investigating this avenue and will get back with the Committee next month. Presentation of Summary of Coppell's Office/Industrial Business Parks. Ms. Roy presented the City's key office/industrial business parks to the Committee, distributing maps and additional reference materials. These materials will update all members on the names and locations of our business parks, as well as the companies that currently occupy these parks. Update on Commercial and Industrial development within the City. City Staff updated the Committee on current projects and potential exploring the Coppell market. new businesses General Discussion and Other business. Mr. Witt discussed with the Committee how the joint work session will function, which will commence at the closing the Economic Development Committee meeting. Adjournment With no further business to discuss, it was moved by Tim Brancheau and seconded by Mary Ann Kellam that the meeting adjourn. By unanimous vote, the meeting was adjourned at approximately 6:55 p.m. Respectfully submitted, Andrea L. Roy Page 2 of 2