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EDP - Minutes - 1998 r~' - -c - : . - . - u - . u - . --- -- -. - -- -. - . -- COPPELL ECONOMIC DEVELOPMENT PARTNERSIDP January 7, 1998 MINUTES The Coppell Economic Development Partnership met at 7:00 p.m. on Wednesday, January 7, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Bill Herries, Scarlett Hovland, Karen Hunt, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Bill Rohloff, Gary Sieb, Councilmembers Chuck Sturges, Marsha Tunnell, and City Manager Jim Witt. Also attending were Tom Palmer and Mark Bennett with presbyterian Healthcare System. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7:05 p.m. 2. Approval of Minutes It was moved by Pat Murphy and seconded by Tim Brancheau that the minutes of November 5, 1997 be approved as recorded. The motion passed unanimously. 3. Consideration of a Request by Presbyterian Healthcare System for Tax Abatement for a 45,000 s.f. Medical Office Building located at the northeast corner of Denton Tap Road and vista Ridge Blvd. (Moro/Beach) Isabelle Moro provided copies of letter received from presbyterian Healthcare System introducing themselves and an application for tax abatement. Isabelle introduced Mr. Tom Palmer, Facilities Services with presbyterian Healthcare System. Mr. Palmer displayed a site plan for the Healthcare System showing buildings, landscaping, and parking. The building plan consists of a Medical Office Building and an Ambulatory Care Center. Tax abatement was only being asked for the Medical office building. The Ambulatory Care Center will be tax exempt. Mr. Palmer introduced Mark Bennett, ACC Administrator with presbyterian Healthcare System. The Medical office will be a three story building consisting of Out patient care, Diagnostic clinic, urgent care with overnight rooms available and meeting facilities. The meeting facilities will be available for use by the community. Mr. Palmer and Mr. Bennett explained that there is a need for a facility within the community offering a presbyterian Health Plan. They also felt the facility would compliment existing physician care, along with offering employment of up to 200. The building project is scheduled to begin in mid February and complete in the last quarter of 1999. Construction is estimated at about 16 months. The Medical office building and the ambulatory care center will be build at the same time according to the construction plan. Chad Beach provided a summary of presbyterian's application for tax abatement. Chad I~ - - - . - - - - . - . - - - - . - - - . - - - - - . - - - - . - . noted that the tax abatement would not have to begin until the year 2000, since the building would not be completed until the end of 1999. Discussion followed. The partnership agreed that the office building and the ambulatory care center should be build at the same time. It was moved by Pat Murphy and seconded by Tim Brancheau that the 75% tax abatement request be granted contingent on both the office building and the ambulatory care center being constructed at the same time. The motion passed unanimously. 4. update on CUrrent & Potential Commercial/Industrial Developments Gary Sieb reported on the presbyterian Healthcare System being located at the northeast corner of Denton Tap Road and Vista Ridge Blvd. Lucent Technologies will be locating at Airline and Freeport as new user of warehouse distribution. An office warehouse consolidation is looking at 120,000 sq. ft. space for relocation to Coppell. Walmart has decided not to locate in Coppell. Tom Thumb project is still active, and Simmons Mattress Company is considering a location at the DFW Trade Center in Coppell. The partnership requested a summary report listing current and potential Industrial land. Isabelle will supply information for report. Also suggested was a tax abatement revenue flow graph which will be provided by Chad Beach. 5. update on Marketing Endeavors The last mailing consisting of the duck calls have been mailed to the attendees of the partnership reception. The third mailing will consist of the jumper cables. Isabelle Moro will bring samples of the mailings to the February Partnership meeting. 6. General Discussion and Other Business Gary Sieb shared that the Coppell Leadership workshop will be meeting on Wed., Jan. 14, 1998 and that Economic Development will be the focus of the evening. He invited any of the Partnership to attend. It was suggested that the partnerhip invite Dallas area developers to speak at the March meeting. Bill Rohloff introduced the partnership's newest member, Karen Hunt, a loan officer with Overton Bank. With no further business to discuss, it was moved by Tim Brancheau and seconded by Bill Herries that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:30 p.m. Respectfully submitted, s~~ Scarlett Hovland -.. ~ COPPELL ECONOMIC DEVELOPMENT PARTNERSIDP February 4, 1998 MINUTES The Coppell Economic Development partnership met at 7:00 p.m. on Wednesday, February 4, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Scarlett Hovland, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Bill Rohloff, Doug Shaw, Gary Sieb, Kathryn Stephenson, Councilmember Marsha Tunnell, and City Manager Jim Witt. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7: 05 p.m. 2. Approval of Minutes It was moved by Tim Brancheau and seconded by Doug Shaw that the minutes of January 7, 1998 be approved as recorded. The motion passed unanimously. 3. Coppell Economic Development Program presentation Isabelle Moro and Chad Beach presented an overview of Coppell' s Economic Development. Copies were provided showing past, present, and future growth for Coppel. Chad Beach explained tax abatement policies and guidelines. Isabelle Moro explained the application process for tax abatements. Discussion followed concerning what tax abatement percentage is offered in surrounding cities. Chad Beach will follow-up with this information for the Partnership meeting in March. 4. update on Marketing Endeavors Isabelle Moro presented samples of the partnership mailings that were sent to various developers. Several thank-you notes were received from the jumper cable mailings. The next mailing will consist of the Star Being Born picture Frame. Isabelle provided copies of the 1998 business survey update that is being mailed to various businesses in Coppell. 5. General Discussion and Other Business Jim witt shared with Partnership that Sharon Logan is the City's new Communications Information Officer. Gary Sieb distributed a poster of Coppell advertising various businesses provided through a private company. There was some discussion on the fact that development is changing with demand for more office space lease and less warehouse leasing. with no further business to discuss, Chairman Bill Rohloff adjourned the meeting at 8:15. Respectfully submitted, S~~~~ Scarlett Hovland ~ COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP March 4, 1998 MINUTES The Coppell Economic Development Partnership met at 7:00 p.m. on Wednesday, March 4, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Karen Hunt, Mary Ann Kellam, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Doug Shaw, Gary Sieb, Councilman Chuck Sturges. 1. Call to Order Vice Chairman Pat Murphy called the meeting to order at 7:03 p.m. 2. Approval of Minutes It was moved by Doug Shaw and seconded by Tim Brancheau that the minutes of February 4, 1998 meeting be approved as recorded. The motion passed unanimously. 3. Request by Lucent Technologies, Inc. for Tax Abatement Gary Sieb introduced Mr. Bruce Hyde, Tax Manager with Lucent Technologies who flew in from New Jersey for the meeting. Mr. Hyde gave an overview of Lucent Technologies, which is a Fortune 40 company and world leader in the design, development and manufacture of communications systems. The company builds local networks, business telephone systems, as well as microchips and related components needed to run a host of products and systems. Currently, Lucent is in the process of consolidating much of its operations in Texas. Offices in Addison, Carrollton, Dallas and Irving will be consolidated in this 100,000 s.f. facility being proposed in Coppell. The new building will house approximately 800 employees in the administrative, back-office and sales functions whose average annual salary will be close to $60,000. Lucent selected this location for the level of visibility and exposure it offers to Interstate Highway 635. Expected move-in is December 1998. Chad Beach provided a summary of Lucent Technologies' application for tax abatement. Discussion followed. It was moved by Tim Brancheau and seconded by Doug Shaw that the 75% tax abatement request be granted to Lucent Technologies, Inc. The motion passed unanimously. 4. Update on Current & Potential CommerciallIndustrial Developments Gary Sieb reported that the Site Plan for Lucent Technologies was approved both by the Planning and Zoning Commission and Council. The Minor Plat for this 6.57 acres property was submitted for City signatures. Gary Sieb mentioned that Presbyterian Hospital's Site Plan and Plat was approved by City Council. However, Presbyterian has requested a sign variance from the Board of Adjustment. The case will be heard by the Board on Thursday, March 5, 1998. Gary Sieb also informed the Partnership that Bill Rohloff will go before City Council on March 10, 1998 to give a progress report on the activities of the Coppell Economic Development Partnership. 6. General Discussion and Other Business Isabelle Moro reported that the Coppell Industrial Employers List had been updated and provided each member with a copy of the new listing. With no further business to discuss, it was moved by Tim Brancheau and seconded by Doug Shaw that the meeting adjourn. By unanimous vote, the meeting was adjourned at 7:45 p.m. ~~ Isabelle Moro COPPELL ECONOMIC DEVELOPMENT PARTNERSIDP April 1, 1998 MINUTES The coppell Economic Development partnership met at 7:00 p.m. on wednesday, April 1, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Bill Herries, Scarlett Hovland, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Bill Rohloff, Doug Shaw, Gary Sieb, Kathryn Stephenson, and councilmember Marsha Tunnell. Also attending '.V'ere Mr. Ralph Heins and Mr. Andrew McCaig with primera Companies. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7:10 p.m. 2. Approval of Minutes It was moved by Pat Murphy and seconded by Doug Shaw that the minutes of March 4, 1998 be approved as recorded. The motion passed unanimously. 3. Request by primera Companies, Inc. for Tax Abatement Gary Sieb introduced Mr Ralph Heins and Mr. Andrew McCaig with primera Companies, Inc. Mr. Heins and Mr. McCaig gave an overview of primera Companies which is a real estate development and investment firm that specializes in industrial warehouse properties. The company recently completed Park West Business Center I & II. primera received a five year, 75t tax abatement from the City of Coppell for the two buildings on Executive Drive. primera is now asking for a tax abatement for a 310,000 s. f. Speculative Office/warehouse facility located at 1110 Northpoint Drive, in the Freeport North Business Park. The proposed building will have a painted exterior finish and the truck court along Northpoint Drive will be screened in with a living screen. This development will offer 5t to lOt less office space than surrounding buildings, however primera feels there is still a great demand for distribution warehouse space. The tax abatement will help with competitive sites in Grapevine, Lewisville and Alliance. The projected employment number is 100 to 150 employees. The average lease will be for 5 years. The developer is just now beginning to move dirt. At this time there is not a tenant secured for this building. Chad Beach provided a summary of primera properties application for tax abatement. Discussion followed. It was moved by Doug Shaw and seconded by Bill Herries that the 75t tax abatement request be granted to primera properties. The motion passed unanimously. r- 4. update on CUrrent & Potential Commercial/Industrial Developments Gary Sieb reported that the presbyterian Healthcare System has closed on the property. presbyterian was granted a sign variance from The Board of Adjustment. Gary mentioned there are other development possibilities in which he was not able to disclose at this time. A Commercial Laundry Company is considering location in Coppell but would require Coppell to provide the water it needed to run this facility. 5 . General Discussion and Other Business Chairman Bill Rohloff reported that the Mayor, Boards and Commission Breakfast was very informative. Topics discussed included road construction, the Recreation and Aquatics Center, Wagon Wheel Park development, etc. The meeting emphasized that a lot of development is occurring in Coppell. The meeting was very informative and will be held on a quarterly basis. Chairman Bill Rohloff reported an update on the partnership to the City Council on March 10, 1998. The complexity of the proposed animal shelter was discussed. with no further business to discuss, it was moved by Doug Shaw and seconded by Pamela Kurtzman that the meeting adj ourn. By unanimous vote, the meeting was adjourned at 7:35 p.m. Respectfully submitted, S~ '"'"~~~ Scarlett Hovland . . COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP May 6, 1998 MINUTES The Coppell Economic Development Partnership met at 7: 00 p.m. on Wednesday, May 6, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Scarlett Hovland, Karen Hunt, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Gary Sieb, City Manager Jim Witt, and Councilmember Chuck Sturges. 1. Call Vice p.m. make to Order Chairman Pat Murphy called the meeting to order at 7:25 Pat Murphy noted that there was lack of a quorum to any administrative actions. 2. Approval of Minutes There were no administrative actions taken due to the lack of a quorum. 3. Tax Abatement Policy Survey Chad Beach led discussion on the Tax Abatement Policy Survey. Chad provided copies of a Tax Abatement Policy Summary listing cities within the metroplex. There were a total of 16 cities surveyed including Coppell. The city of Grapevine and Addison do not offer property tax abatements. The minimum investment of $5 million in taxable assets is the average for tax abatements in surrounding cities. Coppell's minimum investment criteria is $5.5 million in taxable assets but may consider less, based on other economic factors. The average percentage abatement is 50% with Coppell's being 75%. The survey also showed that longer terms of abatement are offered throughout the metroplex up to 10 years. Chad Beach showed a 4 cities comparison of annual tax savings for 2 hypothetical companies. The city of Allen offered the highest tax savings, followed by the cities of Lewisville and Grapevine. Coppell showed to have the highest annual tax bill. The analysis also showed each company's tax saving benefits with triple freeport exemption. Discussion followed considering to lower the percentage of abatement and to lengthen the term. Discussion continued with comparison of Freeport Exemptions. Coppell has a double freeport exemption while some of the area cities offer a triple freeport exemption. City Manager, Jim Witt expressed that various businesses are requesting the triple freeport exemption. The City Manager also reported that several developments considering to locate in Coppell went elsewhere for the triple freeport exemption. The Partnership made a recommendation that Gary Sieb consult with Mr. Cole Morvan of PIano on their triple freeport tax exemption. 4. Update on Current & Potential Commercial/Industrial Developnents Gary Sieb had no developments to report on at this time. 5. General Discussion and Other Business There was discussion on the summer schedule for meetings. It was proposed that the Partnership not schedule meetings for June, July or August. Special meetings will be called for tax abatement requests. With no further business to discuss, the meeting was adjourned at 8:00 p.m. Respectfully submitted, Scarlett Hovland - ---,----, -,----,---,-----, ----,-, COPPELL ECONOMIC DEVELOPMENT PARTNERSIllP June 10, 1998 MINUTES The Coppell Economic Development partnership met at 7:00 p.m. on Wednesday, June 10, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Bill Herries, Scarlett Hovland, Karen Hunt, Mary Ann Kellam, Isabelle Moro, Pat Murphy, Bill Rohloff, Doug Shaw, Gary Sieb, Kathryn Stephenson, City Manager Jim Witt, and Councilmembers Doug Stover, Marsha Tunnell, and Larry Wheeler. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7:05 p.m. Mr. Rohloff introduced Councilmembers Doug Stover and Larry Wheeler. Mr. Stover and Mr. Wheeler will be the new representatives of the City Council for the partnership. Mayor Pro Tern Marsha Tunnell and Councilmember Chuck Sturges will no longer serve on the partnership committee. 2. Approval of Minutes It was moved by Pat Murphy and seconded by Doug Shaw that the minutes of April 1 and May 6, 1998 be approved as recorded. The motion passed unanimously. 3. Tax Abatement Policy Survey Chad Beach led discussion on the Tax Abatement policy Survey. Chad provided copies of a Tax Abatement policy Summary listing cities within the metroplex. There were a total of 16 cities surveyed including Coppell. The city of Grapevine and Addison do not offer property tax abat~ments. The minimum investment of $5 million in taxable assets is the average for tax abatements in surrounding cities. Coppell' s minimum investment criteria is $5.5 million in taxable assets but may consider less, based on other economic factors. The average percentage abatement is 50% with Coppell's being 75%. The survey also showed that longer terms of abatement are offered throughout the metroplex up to 10 years. Chad Beach showed a 4 cities comparison of annual tax savings for 2 unidentified Coppell companies. The city of Allen offered the highest tax savings, followed by the cities of Lewisville and Grapevine. Coppell showed to have the highest annual tax bill. The analysis also showed each company's tax saving benefits with triple freeport exemption. Discussion continued with comparison of Freeport Exemptions. Coppell has a double freeport exemption while some of the surrounding communities offer a triple freeport exemption. Some of the benefits that were mentioned for a triple freeport exemption included being able to offer a tool for recruiting warehouse developments, Coppell would not be overlooked by developments because of area cities offering the triple freeport exemption, would aid in retaining businesses, and would be financially appealing to businesses. 4. Impact of a Freeport Exemption on CISD Doug Shaw shared with the Partnership what impact the triple freeport exemption would have on the CISD. He reported on two issues of the most concern. The first issue being how the revenue structure for CISD would be effected in the first year of implementation and thereafter. The second issue is how this would effect the Robin Hood Plan. City Manager Jim witt provided handouts of a report done by Moak, Casey & Associates, LLP on the "Consideration of the Adoption of a Freeport Exemption by the Coppell Independent School District." Moak, Casey & Associates have done analysis for the Garland lSD, Frisco ISD and PIano ISD on this specific issue. It was recommended by the partnership that the study be done by Moak, Casey & Associates in order to assess the actual impact the triple freeport tax would have on CISD. Doug Shaw offered to take this recommendation to the School Board. It was discussed that the developers in Coppell may be willing to pay for the study to be done. 5. Canceling of July and August Meetings Gary Sieb recommended to the partnership that only special called meetings be held for July and August. It was moved by Doug Shaw and seconded by Bill Herries that the July and August Meetings be cancelled, unless a meeting needs to be called for tax abatement requests. The motion passed unanimously. 6. update on Current & Potential Commercial/Industrial Developments Gary Sieb reported that primeco was looking to locate in Building D owned by IDI. primeco is interested in leasing 51,000 sq. ft. to store high tech equipment valued at $8 million. They are asking for a tax abatement. According to Chad Beach, Legal Counsel advised him that the city could amend the existing tax abatement agreement with IDI on building "0" to include primco's equipment. The amendment would allow the city to offer primeco tax abatement up to 75~ on the assessed value of their equipment. Chad will ask primeco to complete a tax abatement application and provide the city with the supporting documentation regarding annual sales tax to be generated by the lease agreement on primeco equipment. The partnership indicated they would be receptive to schedule a special meeting in the near future to consider primeco's request only if staff made a favorable recommendation to the partnership. Isabelle also reported on two new industrial developments. The first being a 2 office building totalling 216,000 sq ft. of space being proposed for the NW corner of Beltine and wrangler roads. The second being an 80,000 sq. ft. call center being proposed for the Southwest corner of Lakeshore and Crestside Drives. 7. General Discussion and Other Business Isabelle provided copies of a newspaper article from the ~ Colinas Business News that the City of Irving is offering a 30 percent tax abatement to qualifying companies relocating within Irving. In order to qualify a company has to have been in the city of Irving at least 10 years and must maintain the same number of full-time employees. The company also must be constructing a new facility or leasing a newly constructed building in its entirety. Isabelle also provided copies of an updated community profile for the City of Coppell. With no further business to discuss it was moved by Bill Herries and seconded by Karen Hunt that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:20 p.m. Respectfully submitted, 5",,"",,~<;lO~ Scarlett Hovland - , COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP September 2, 1998 MINUTES The Coppell Economic Development Partnership met at 7: 00 p.m. on Wednesday, September 2, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Bill Herries, Scarlett Hovland, Karen Hunt, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Gary Sieb, Kathryn Stephenson, City Manager Jim Witt, and Councilmembers Doug Stover, and Larry Wheeler. 1. Call to Order Vice Chairman Pat Murphy called the meeting to order at 7:04 p.m. 2. Approval of Minutes It was moved by Bill Herries and seconded by Karen Hunt that the minutes of June 10, 1998 be approved as recorded. The motion passed by a vote of 4-0-1. Tim Brancheau abstained from the vote. An abstained vote counts as a yes vote. 3. Request by Pacific Realty Associates, L.P. for Tax Abatement Gary Sieb introduced Mr. Marc Myers, President of Myers & Crow Company. Myers & Crow Company, Ltd. is a real estate development and investment firm focusing on industrial and office building development in North Texas. They have two 289,500 sq. ft. office warehouse facilities located in the Park West Business Center Industrial Park, with major tenants like Meiko America Inc. and Malt-O-Meal Inc. Mr. Myers gave an overview of the proposed development. Pacific Realty is asking for a tax abatement for 2 separate office/warehouse facilities totaling 245,200 sq. ft. located at the northeast and northwest corners of Wrangler and Enterprise Drives in the Park West Commerce Center. The 2 separate buildings will offer warehouse/distribution and office type facilities during Phase I of the development. Another 2 warehouse/distribution and office type facilities are planned for Phase II, totaling jointly over 260,000 sq. ft. Mr. Myers expressed the need for smaller buildings for smaller tenants which is what this development will offer. The new buildings will house approximately 225 employees. The average lease will be for 5 years. Two potential tenants are interested in leasing space. The extension of Wrangler Road has helped to make the building more accessible to tenants. Phase I of this development is to be complete by Jan. 1, 1999 with tenants beginning lease on Feb. 1, 1999. Phase II of the development will not begin until 70% of buildings 1 and 2 are leased. Jim Witt asked Mr. Myers to address the triple freeport tax \ . issue. Mr. Myers spoke with regards to the importance of the tax issue. He stated that the surrounding areas to Coppell were offering the triple freeport tax and that plays an important part in the relocation of the larger distribution facilities. Typically, cities who offer the tax experience a 30% to 40% faster growth in their industrial sector. Chad Beach provided a summary of the results of the econometric model for Pacific Realty Associates tax abatement application. Discussion followed. It was moved by Bill Herries and seconded by Tim Brancheau that the 75% abatement request be granted to Pacific Realty Associates. The motion passed unanimously. 4. Request by Industrial Developments International for Tax Abatement Gary Sieb introduced Mr. John Leinbaugh, representative for IDI. Mr. Leinbaugh gave an overview of Industrial Developments International and provided an information packet of the D/FW Trade Center. The tax abatement being asked for is a 500,000 sq. ft. office/wa~ehouse facility located along the south side of Patriot Drive in the D/FW Trade Center Industrial Park. D/FW Trade Center is a 180 acre development that includes approximately 63 acres in the City of Coppell. Building F will be the third facility to be developed in the City of Coppell of which the tax abatement is being requested. The building offers flexibility for distribution and office. Estimated number of employees is over 235, with the average salary approximately at $32,000. The average lease will be for 5 years. Expected move-in is January 15, 1999. Chad Beach provided a summary of the results of the econometric model for IDI's application for tax abatement. Discussion followed. It was moved by Tim Brancheau and seconded by Pamela Kurtzman that the 75% tax abatement request be granted to IDI. The motion passed unanimously. 5. update on the Impact of a Freeport Exemption on CISD Jim witt provided copies of the anonymous letter that was circulated throughout the Coppell community concerning the Freeport Tax Exemption. The letter stated that developers are trying to compromise our schools by getting the school board to agree to the Triple Freeport Tax Exemption. Moak, Casey & Associates, LLP are in the process of conducting a study on the actual impact the triple freeport tax would have on CISD. The study should be completed by the end of September. The study will be presented to the Partnership and to the CISD School Board upon completion. Discussion followed. Some of the concerns that were presented was the impact of surrounding areas offering the tax and the competition that brings for Coppell in bringing future developers here and also retaining business. Another concern is how the tax would effect the Robin Hood Plan for the CISD and how the revenue structure would be effected for them. It was moved by Pat Murphy and seconded by Pamela Kurtzman that the city of Coppell pay for the expense of the study being conducted by Moak, Casey & Associates. .. 6. Review on Current & Potential Commercial/Industrial Developments Gary Sieb reported to the Partnership that GTE is in the process of asking for a zoning change. Their project will entail a 2 phase development. Phase I will consist of the development of 2 buildings. Phase II will be developed in the future. The 2 buildings will house approximately 2000 employees. A portion of the buildings are scheduled to be occupied in June 1999. Gary also reported that the Presbyterian Hospital will begin construction in late November. Vari-Lite, Inc. has their property located at the northwest corner of S. Beltline & Lakeshore Drive for sale. Jim Witt reported that D/FW has approached him with an interest in developing the property at the corner of Sandy Lake Rd. and Royal Lane. 7. General Discussion and Other Business Isabelle Moro reported that she had updated the community profile and fast facts. With no further business to discuss it was moved by Pat Murphy and seconded by Kathryn Stephenson that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:30 p.m. Respectfully submitted, Scarlett Hovland " COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP October 7, 1998 MINUTES The Coppell Economic Development Partnership met at 7: 00 p.m. on Wednesday, October 7, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Scarlett Hovland, Karen Hunt, Mary Ann Kellam, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Gary Roden, Bill Rohloff, Gary Sieb, city Manager Jim Witt, and Councilmembers Doug Stover, and Larry Wheeler. 1 . Call to Order Chairman Bill Rohloff called the meeting to order at 7:05 p.m. 2. Approval of Minutes It was moved by Tim Brancheau and seconded by Karen Hunt that the minutes of September 2, 1998 be approved as recorded. The motion passed unanimously. 3. Introduction of New Partnership Member Gary Sieb introduced new member Mr. Gary Roden to the Partnership. Gary circulated a list of the members for address and phone number changes. An updated list will be available at the next Partnership meeting. 4. Election of Chairman and Vice Chairman Any member is available to fill the place of Chairman and Vice Chairman. Bill Rohloff volunteered to continue as Chairman. It was moved by Pamela Kurtzman and seconded by Karen Hunt that Bill Rohloff be nominated for Chairman. The motion passed unanimously. Pat Murphy also volunteered to continue as Vice Chairman. It was moved by Mary Ann Kellam and seconded by Tim Brancheau that Pat Murphy be nominated for Vice Chairman. The motion passed unanimously. 5. Overview of City Marketing Material and Financial Incentives Isabelle Moro presented the City marketing packet for the Partnership to review. Isabelle explained what tax abatement incentives are offered in Coppell. Discussion followed concerning an update of the Coppell Video with the completion of Grapevine Mills. Gary Sieb will contact GTE on updating the video. ..... 6. Request by GTE for Tax Abatement Isabelle Moro introduced Mr. Gilbert Berger and Mike Webster of Beck Realty Group representing GTE Realty Corporation. GTE is asking for tax abatement for two 5-story office facilities totaling 500,000 S.F. located at the northeast corner of Corporate Park Blvd. and S.H. 121. The facility will house the shared services support for the back office functions of GTE. Each building will accommodate about 1000 employees. There is ample parking available for the office employees. GTE is scheduled to break ground on October 22, 1998. The project's estimated completion date is mid July 1999. Discussion followed over concern of the GTE recent merger with Bell Atlantic and how it would impact this new facility. It was explained that GTE employees are being pulled from area offices to relocate here. There have also been requests for use of the building from area GTE offices outgrowing their space. The tax abatement would not be in effect until Jan. 1, 2001. Chad Beach provided a summary of the results of the econometric model for GTE's application for tax abatement. It was moved by Karen Hunt and seconded by Pamela Kurtzman that the 5-year, 50% tax abatement request be granted to GTE. The motion passed unanimously. 7. Request by IBM and Prentiss Properties for Tax Abatement Isabelle Moro introduced Mr. Craig Anderson, Senior Program Manager of IBM and Ms. Lynn Minnici with Prentiss Properties. IBM and Prentiss Properties were asking for tax abatement for a single-story office facility totaling 104,000 S.F. located at the southwest corner of Beltline Road and Airline Drive in the Park West Commerce Center Industrial Park. IBM has moved into the office space, which is their call center. IBM employs up to 800 employees at this time and will in the near future employ up to 1000 people. This facility will service the entire country with its extended hours of operation 7 a.m. to 7 p.m. IBM has a ten-year lease with Prentiss. If IBM were to outgrow this office space, a new office building would be developed rather than expanding its current facility. Chad Beach provided a summary of the results of the econometric model for IBM's application for tax abatement. Discussion followed. The Partnership questioned the request for tax abatement after occupancy of building. Chad Beach explained that it was just a delayed request on the part of IBM and Prentiss. They were still within the allowable time limit to request a tax abatement. It was moved by Karen Hunt and seconded by Mary Ann Kellam that the 5-year 75% tax abatement request be granted to IBM and Prentiss Properties. The motion passed by a 6 to 1 vote. . );<,..... 0:.' ';,,"': '1,~ ... , . . 8. Request by Prentiss Properties for Tax Abatement Ms. Lynn Minnici and Mr. Davis Glass, representatives for Prentiss Properties gave presentation on the Lakeview Center. The Lakeview center consists of two single-story office facilities totaling 208,564 square feet located at the northwest corner of Beltline Road and Wrangler Drive in the Park West Commerce Center Industrial Park. The buildings will house high tech office type tenants. Miller Freeman, Inc. will be the main tenant for building 1 with a signed 10-year lease to commence 4/1/99. Building II has interested prospects at this time. Building I will be constructed before Building II is build. This facility will offer covered parking. Chad Beach provided a summary of the results of the econometric model for Lakeview Center, Building 1. Discussion followed with the clarification that tax abatement was being asked for Building I only at this time. It was moved by Karen Hunt and seconded by Tim Brancheau that the 5-year, 75% abatement request for building I be granted to Prentiss Properties. The motion passed unanimously. 9. Update on the Impact of a Freeport Exemption Jim Witt reported to the Partnership that the study by Moak Consulting on the impact of a freeport exemption on CISD had not been completed yet. Jim anticipated a preliminary study report by the end of the week. Jim shared that he had met with Buddy Echols, CISD Superintendent on the freeport issues. Four Seasons had voiced some concerns over the freeport issue, however he had not succeeded in making contact with Four Seasons. A special called meeting was recommended to review the final report from Moak. The Partnership suggested reviewing the report before meeting with Mr. Moak. Jim witt provided copies of 1997 Property Tax Rate comparison with the freeport exemption offered by surrounding cities. .~ :( ,.0. 10. Resignation of Doug Shaw, CISD appointee to the Partnership Gary Sieb shared with the Partnership, Doug Shaw's resignation letter. Doug was the CISD appointee to the Partnership. Gary Sieb was unaware if the CISD would call a special election or would wait until January to appoint a new member. Bill Rohloff suggested a letter be written to the School Board for a new appointee because of the Moak study. Bill will draft the letter and send it. 11. Review on Current & Potential Commercial/Industrial Developnents Isabelle Moro reported on 2 new projects in the Freeport North Industrial Park and in the Gateway Business Park. Gary Sieb shared that Presbyterian Medical Center is scheduled to begin construction in November. " . 12. General Discussion and Other Business The partnership expressed they would like to receive advance notice on Ground Breaking and Ribbon Cuttings. Scarlett Hovland will continue to provide copies of the listing provided through the Chamber. Wi th no further business to discuss it was moved by Tim Brancheau and seconded by Pamela Kurtzman that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:55 p.m. Respectfully submitted, ~~ Scarlett Hovland COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP November 4, 1998 MINUTES The Coppell Economic Development Partnership met at 7: 00 p.m. on Wednesday, November 4, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Scarlett Hovland, Karen Hunt, Robert Key, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Gary Roden, Bill Rohloff, Gary Sieb, City Manager Jim Witt, and Councilmembers Doug Stover, Larry Wheeler and newly elected councilmember Jayne Peters. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7:05 p.m. Ms. Jayne Peters; newly elected councilmember was introduced to the Partnership. 2. Approval of Minutes It was moved by Pamela Kurtzman and seconded by Pat Murphy that the minutes of October 7, 1998 be approved as recorded. The motion passed unanimously. 3. Presentation on the Impact of a Freeport Exemption on the Coppell ISD Jim Witt introduced Mr. Lynn Moak representing Moak, Casey & Associates, LLP. Mr. Moak reviewed with the partnership the study that his firm prepared on the impact of a freeport exemption on the Coppell ISD. Mr. Moak provided copies of the report and a Texas School Finance revenue chart. The study suggests that CISD will face a potential freeport level of $120 million. At current tax rates, total tax relief of approximately $1.9 million will occur at the school district level. Of this amount, $.2 million will be for debt service payments and will have to be replaced by CISD. The remaining $1.7 million represents a potential reduction in general revenue funds of CISD. This amount will be offset by reduced requirements for payments to the state of $.3 million for the first year of adoption and $1.7 million for the subsequent year. Mr. Moak reported that over the past year, five suburban districts have adopted the exemption including Plano, Frisco, Fort Bend, and Lamar Consolidated ISDs. There are also several other school districts considering a freeport exemption, which includes Garland, Richardson, Mesquite, and Sherman ISDs. This is cause for concern as the surrounding areas begin to offer the tax exemption, the impact it may have on Coppell' s ability to attract future developments and also retaining its current corporate base and the competition that brings for Coppell in bringing future developers here and also retaining business. Typically, cities that offer the tax exemption experience a 30% to 40% faster growth in their industrial sector. The economic impact of the freeport exemption is limited to specific commercial or industrial users with high levels of inventory destined for out-of-state sale. For these companies, the impact can be very significant. The projected impact of a freeport exemption on Coppell ISD is the result of six factors. These factors include the future growth of Coppell lSD, the operation of the current Texas public school finance system, the level of local taxes for operating purposes, the level of debt service requirements, the economic impact of the freeport exemption, and potential modification to the Texas public school finance system. Discussion followed after the presentation. The Partnership felt it important to proceed with discussion of study with the school district. The Partnership would like to use an in-house example to present with the triple freeport tax exemption presentation to the school board. Bill Rohloff will draft a letter to the school board for consideration of a joint work session including Mr. Moak, and the Partnership to be scheduled. It was moved by Tim Brancheau and seconded by Gary Roden to call a special meeting of the Partnership on November 18, 1998 to further discuss the triple freeport study. The motion passed unanimously. 4. Review of Current & Potential Commercial/Industrial Developments Isabelle Moro informed the Partnership of several new developments. IDI in the D/FW Trade Center Industrial Park are ready to construct Buildings G & H. These buildings will be situated such that part of the building is in Grapevine and part in Coppell. Freeport North Addition located at the northwest corner of Creekview Drive and Royal Lane, which will consist of four separate office/warehouse facilities, is under review. The Lakeview center consisting of two single-story office facilities located at the northwest corner of Beltline Road and Wrangler Drive is under construction with Phase I. Miller Freeman, Inc. will be the main tenant for Building I. Pacific Realty has begun construction on the office/warehouse facilities located at the northeast and northwest corners of Wrangler and Enterprise Drive. G & K Services, a laundry facility has begun construction on an 80,000 s.f. building on Airline Drive. Lucent Technologies has begun construction on their office facility located along the West Side of Freeport Parkway; east of Interstate 635 in the Gateway Business Park. 5. General Discussion and Other Business Gary Sieb introduced Mr. Robert Key to the Partnership who is replacing Doug Shaw as the CISD representative. Gary will update the list of members for the Partnership. Jim Witt shared the letter from Four Seasons concerning Coppell offering the triple freeport exemption. Mr. Gordon Foster was present at the meeting as their representative. The Four Seasons lease will be up in January. The triple free-port exemption is of great importance in deciding whether they stay in Coppell or re-locate to benefit from the tax advantage. Bill Rohloff expressed his appreciation of being invited to Primera's open house. Some of the City Staff did attend the event, which was very nice. Gary Sieb said that GTE would update the Coppell video with Grapevine Mills for a minimal cost. GTE will be offering a $1000.00 grant to the Partnership in the near future. With no further business to discuss it was moved by Tim Brancheau and seconded by Karen Hunt that the meeting adjourn. By unanimous vote, the meeting was adjourned at 9:00 p.m. Respectfully submitted, Scarlett Hovland . \, COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP November 18, 1998 MINUTES The Coppell Economic Development Partnership met at 6: 30 p.m. on Wednesday, November 18, 1998 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell, Texas 75019. The following were present: Chad Beach, Tim Brancheau, Scarlett Hovland, Bill Herries, Pamela Kurtzman, Isabelle Moro, Pat Murphy, Gary Roden, Bill Rohloff, Gary Sieb, Councilmembers Doug Stover, Larry Wheeler, and Jayne Peters. Guests included Susan Richman and John Gethin of FourSeasons. 1. Call to Order Vice-Chairman Pat Murphy called the meeting to order at 6:35 p.m. 2 . Approval of Minutes It was moved by Tim Brancheau and seconded by Pamela Kurtzman that the minutes of November 4, 1998 be approved as recorded. The motion passed unanimously. 3. Review of study by Moak, Casey & Associate, LLP on the impact of a Freeport Tax Exemption on the Coppell ISD. Bill Rohloff introduced Mr. Lynn Moak representing Moak, Casey & Associates, LLP. Mr. Moak reviewed with the partnership the study that his firm prepared on the impact of a Freeport Exemption on the Coppell ISD. Mr. Moak stated that he has not received a response from the CISD with regards to his study. He shared that the Carrollton-Farmers Branch School District has retained him for a similar Freeport Exemption study. Mr. Moak informed the Partnership that he expects no change to the Texas Public School financial system during the next legislative session. He understands that the Robin Hood plan will continue as in place now. Discussion followed concerning how the growth rate in Coppell would affect the school district. Mr. Moak noted that according to growth projection for CISD it would continue to grow at a rate of 7% to 8%. Mr. Moak pointed out that the impact Freeport Exemption would have for CISD would be a loss of revenue the first year of the Freeport Tax Exemption. He continued with the fact that Coppell is surrounded by cities already offering the Triple Freeport Exemption. A concern with overall commuI:li ty growth interest can be affected with Coppell not offering the Freeport Exemption. Discussion continued concerning the impact the exemption would have for the city and the school. Also discussed were some of the oppositions concerning the Freeport exemption. Bill Rohloff introduced Susan Richman and John Gethin representing FourSeasons. They shared with the Partnership their need for the Freeport Exemption. FourSeasons .~ . will be consolidating their facilities which is forcing them to locate additional space in a centralized location. The company is looking at Coppell, Grapevine, and Lewisville areas. If FourSeasons were to stay in Coppell with only Double Freeport Exemption the company would loose a substantial amount of revenue. They would like to stay in Coppell but because of the financial impact for their company they are forced to consider relocating to surrounding cities that offer the Triple Freeport Tax Exemption. FourSeasons will have to make a relocation decision in January. Bill Rohloff mentioned he had not received a reply back from Mr. Echols, CISD School Superintendent concerning the Freeport exemption. Susan Richman with FourSeasons offered to be a part of the discussions between the city and the CISD. Mr. Moak will be available until a decision is made on the Freeport Exemption. It was moved by Bill Herries that Bill Rohloff contact Mr. Echols, CISD Superintendent to schedule a meeting in December with himself, Director of Planning Gary Sieb, City Manager Jim Witt and Susan Richman, Director of Finance and Operations for FourSeasons. Mr. Rohloff would also establish permission for Lynn Moak to meet with the CISD financial consultant. Pamela Kurtzman made an addendum to the motion that it be noted the urgency and short time line that FourSeasons is under and to bring forth the positive impact that FourSeasons growth would have for Coppell. The motion was seconded by Tim Brancheau and passed unanimously. 4. General Discussion and Other Business Gary Sieb shared with the Partnership that some of the developments in Coppell have offered to subsidize the CISD's first year's revenue loss affected by the Freeport Exemption. With no further business to discuss it was moved by Tim Brancheau and seconded by Bill Herries that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:25 p.m. Respectfully submitted, ~~ Scarlett Hovland