RE 07-20-98.1 RESOLUTION NO. 072098.1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL,
TEXAS, AUTHORIZING THE CITY MANAGER TO NEGOTIATE FOR CITY
COUNCIL APPROVAL AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT
PURSUANT TO SECTION 380 OF THE TEXAS LOCAL GOVERMMENT CODE AND
A TAX ABATEMENT AGREEMENT WITH BECK REALTY GROUP LTD. (BECK)
AND GTE REALTY CORPORATION (GTE); AND PROVIDING AN EFFECTIVE
DATE.
WHE~AS, Beck o~s or is under contract to purch~e appro~mately ~enW-four (24)
acres of l~d located on the southeast side of State ~way 121 be~een Co.orate P~k
Boulev~d ~d Coppell Road in Coppell, Tex~ (the "PROPERTY") ~d ~tends to construct
thereon Phase I for G~ ~o (2) five-sto~ o~ buildings of at least 250,000 ~u~e feet
~d associated p~ng (the "FAC~IT~'); ~d
WHE~AS, the PROPERTY ~d the FAC~ITY upon completion we to be omed ~d
occupied by G~; and
W~AS. G~ holds or MIl hold ~ option to purchase appro~mately ten (10) acres
to the east ~d adjacent to the PROPERTY for ~mre developmem ora Phase ~ project; ~d
WHE~AS, G~ intends to occupy the FAC~ITY ~d m~mfin operations ~thn the
City for a period of at least ten (10) ye~s ~er the issu~ce of a ceff~ficate of occup~cy for the
FAC~ITY; ~d
WHE~AS, G~ intends to use its reasonable best effo~s to employ appm~mately
2,000 people at the FAC~ITY each year; ~d
WHE~AS, Beck ~d G~ have requested the CiW pro. de a t~ abatement ~d ce~ain
econo~c development ~centives for Phase I to assist in the relocation of GTE to the City of
Coppell, Texas; ~d
WHE~AS, the City Counc~ desires to ac~lerate the plied improvement of Coppell
Road to ~sist in the relocation of G~ to the City of Coppell. Text; and
WHE~AS, the City desires to emer imo ~ Econo~c Development ~centive
A~eement ~d T~ Abatement Agreement ~th Beck ~d G~, ~ applicable, ~ntingent on the
constm~ion of the FAC~ITY ~d the relocation of G~ to the City of Coppell, Texas; ~d
WHE~AS, the e~cement of loc~ economy is in the best interest of the citizens of
the City of Coppell, Texas; ~d
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WHEREAS, economic development incentives may encourage prospective businesses
and companies to locate or expand operations in the City of Coppell, Texas; and
WHEREAS, the City of Coppell, Texas is authorized to provide economic development
incentives to support the expansion of local businesses, employment and development;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCI~ OF THE
CITY OF COPPELL, TEXAS:
SECTION 1. That subject to Beck constructing the FACILITY and GTE's agreement to
utilize the FACILITY, the City Manager is hereby authorized to negotiate for City Council
approval, a Tax Abatement Agreement with Beck and GTE, as applicable, for Phase I in
accordance with the City's Tax Abatement Guidelines and criteria.
SECTION 2. That the City Council will schedule a public heating for the designation of
the PROPERTY as a tax abatement reinvestment zone. Beck and GTE, as applicable, shall
comply with the City of Coppell Tax Abatement Guidelines and make formal application to the
Economic Development Partnership.
SECTION 3. That at least seven (7) days prior to the execution of the Tax Abatement
Agreement, notice of the City's intent to enter into the Tax Abatement Agreement will be
delivered to the governing body of each of the taxing units that includes in its boundary the
PROPERTY.
SECTION 4. That the Tax Abatement Agreement shall provide, among other provisions,
the following:
A. that the development of the property must conform to all the requirements of City
zoning ordinance, and other applicable development standards and regulations;
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B. a five (5) year abatement of taxes of fifty percent (50%) of the added value to the
real property, and fifty percent (50%) of the value of tangible personal property,
excluding inventory, added to the real property, confmgent upon: (a) construction
and occupancy of the PROPERTY and FACILITY by GTE or an affiliate on or
before December 31, 1999, such occupancy continuing for a period of not less
than ten (10) years; (b) construction of the FACILITY with a minimum of costs to
be agreed upon; and (c) the creation and maintenance of not less than 2,000
employment positions;
C. a description of the kind, number, location and cost of all proposed improvements
of the property, including the FACILITY;
D. that access to the property is to be provided to allow for the inspection by City
inspectors and officials in order to ensure that the improvements or repairs are
made according to the specifications and terms of the Tax Abatement Agreement;
E. that property tax revenue loss as a result of the Tax Abatement Agreement will be
recaptured by the City if the improvements to real property (the "FACILITY") are
not made, or job creation requirements are not met, or for other defaults under
Tax Abatement Agreement;
F. that none of the PROPERTY subject to tax abatement is owned or leased by a
member of the City Council or by a member of the City Planning & Zoning
Commission;
G. that GTE will use its reasonable best efforts to employ approximately two
thousand (2,000) people at the FACILITY each year;
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H. that GTE will comply with job creation and/or retention guidelines be set forth in
Tax Abatement Agreement;
I. that GTE will occupy the FACILITY and maintain operations within the City for a
period of at least ten (10) years following the issuance of a certificate of occupancy
for the FACILITY;
SECTION 5. That subject to Beck constructing the FACILITY and GTE's agreement to
utilize the FACILITY, the City Manager is hereby authorized, to negotiate for City Council
approval, an Economic Development Incentive Agreement with Beck and GTE, as applicable, to
provide certain economic development incentives for Beck's construction of the FACILITY and
for GTE's utilization of the FACILITY.
SECTION 6. That the Economic Development Incentive Agreement shall provide,
among other provisions, the following:
A. that the development of the property must conform to all the requirements of City
zoning ordinance and other applicable development standards and regulations;
B. a description of the kind, number, location and cost of all proposed improvements
of the property, including the FACILITY;
C. that access to the property is to be provided to allow for the inspection by City
inspectors and officials in order to ensure that the improvements or repairs are
made according to the specifications and terms of the Economic Development
Incentive Agreement;
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D. liquidated damages if the improvements to real property are not made, or job
creation requirements are not met or for other defaults under the Economic
Development Incentive Agreement;
E. that none of the PROPERTY is owned or leased by a member of the City Council
or by a member of the City Planning & Zoning Commission;
F. that GTE will use its reasonable best efforts to employ approximately two
thousand (2,000) people at the FACILITY each year;
G. that GTE will comply with job creation and/or retention guidelines be set forth in
Economic Development Incentive Agreement;
H. that GTE will occupy the FACILITY and maintain operations within the City for a
period of at least ten (10) years following the issuance of a certificate of occupancy
for the FACILITY;
I. acceleration of the planned improvement of Coppell Road by the City at City cost,
from a two lane asphalt road to a two lane concrete curb and gutter street
including offsite facilities as may be required to eliminate any need for on-site
storm water detention for Phase I, and Phase II if developed;
I. City cooperation with Beck and/or GTE as applicable, for the installation of a
traffic signal at the intersection of State Highway 121 service road and Coppell
Road, or at the intersection of State Highway 121 service road and Corporate
Drive;
K. City acceleration of the approval process for development of the PROPERTY;
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L. economic development incentive grant by City to offset roadway and
water/wastewater impact fees in excess of Twenty Thousand Dollars ($20,000), if
any, to be assessed the PROPERTY.
SECTION 7. This resolution shall become effective immediately from and after its
passage, as the law and charter in such cases provide.
DULY PASSED and approved by the City Council of the City of Coppell, Texas, on this
the ~-pi.~ dayof .)~.//~ ,1998.
/:,.
CAI~Y 'SHEE~'~ MAYOR
ATTEST:
KATI-ILEEN ROACH, CITY SECRETARY
APPROVED AS TO FORM:
PETER G. SMI~i-I~ CITY ATTORNEY
(PGS/ttl 7/21/98)
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