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BM 1997-07-09 EcDevCOPPELL ECONOMIC DEVELOPMENT PARTNERSHIP JULY 9, 1997 MINUTES The Coppell Economic Development Partnership met at 7:00 p.m. on Wednesday, July 9, 1997 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, Mary Ann Kellam, Isabelle Moro, Tom Morton, Pat Murphy, Ron Pankey, Bill Rohloff, Gary Sieb, Doug Shaw, Kathryn Stephenson, Councilmembers Chuck Sturges, Marsha Tunnell, and City Manager Jim Witt. Also attending were Jeff Turner with Insignia Commercial Group, Inc. and Pete Smith, City Attorney. 1. Call to Order Ron Pankey called the meeting to order at 7:05 p.m. 2. Approval of Minutes It was moved by Doug Shaw, seconded by Bill Rohloff that the minutes of June 4, 1997 be approved as recorded. The motion passed unanimously. 3. Briefing by City Attorney on evaluating tax abatement applications Pete Smith, City Attorney made presentation on evaluating the City's tax abatement applications. Pete explained that sometimes the applicant has misunderstandings concerning the application and offered options the Partnership has concerning the applications. The Partnership has flexibility with the guidelines presented to the applicant. All applicants shall be considered on a case by case basis. Pete explained that first the applicant asks for the tax abatement, the Partnership then makes decision on approving the tax abatement, and then it is presented to the Council. Pete stressed the impact of the Partnership as to their decision on tax abatements, that in most cases the Council will respect the Partnerships decision. Some of the stipulations that may be placed in the application agreement could include the style of building, and quality of the business pertaining to the landscaping, generation of job, payroll sales tax, etc. Pete also explained the Triple Net Lease option for third party leases. Pete reminded the Partnership that tax abatements are for a period of five consecutive years, however the City may delay the commencement of the tax abatement until January 1 of the second year following the year in which the tax abatement agreement is executed. Positive discussion followed Pete's presentation. The Partnership was happy to learn about the freedom of creativity that may be used when considering tax abatements. 4. Presentation of City's Projected Tau Revenues Ron Pankey made presentation to the Partnership with graphs showing Commercial footage growth through the years of 1992 to 1997. Commercial growth declined until 1994 with the biggest growth period being in 1996. He also presented graphs showing the valuation of Residential footage through 1992 to 1997. Ron pointed out that the greatest revenue loss is with residential growth, emphasizing the need for Commercial Development to bring relief to the residents, thus the need for tax abatements. Ron also provided copies of a study on the "Fiscal Impact By Existing Land Use and New Development for the City of Coppell, Texas" prepared by Luis Castillo in December of 1992. Ron would like to have a similar report prepared showing the current fiscal impact. This study would involve participation of the Partnership as well as input from various City Employees. Chad Beach continued presentation with handouts depicting taxable valuation growth comparison. Chad projects that the revenue in 1997 will come down three to five percent with two percent as a result of tax abatements. Lengthy Discussion followed on how to best utilize the summary of the City's Projected Tax Revenues. It was felt that the Council, City, Developers and Media would benefit from such a report. Some of the suggestions for circulation of the study would be to start with local newspapers and publications and local community business gatherings. It was also discussed in circulating these projections in publications that would reach outside of Dallas. City Manager Jim Witt will be researching the possibility of a free lance writer to help in presenting facts to the newspapers and magazines. It was stressed by the Partnership that this needs to be a Business Development story instead of a Metropolitan story. The Partnership made a decision to present a Revenue Projection Survey to the Chamber Luncheon on August 20, 1997. Bill Herries and Bill Rohloff will be responsible for the communication part of the study. Ron Pankey and Chad Beach will be putting together the numbers for the report. 5. Consideration of Request by Insignia Commercial Group for Tau Abatement for a second 367,000 s.f. Office/Warehouse Building located on Airline Drive Mr. Jeff Turner, representing Insignia Commercial Group shared with the Partnership that Building I of their building site plan is complete and Briggs -Weaver, the nation's largest industrial supply distributor is leasing the space. Mr. Turner requested tax abatement on Building II. Jeff provided brochures on design features and benefits of the facility. Chad Beach provided summary _of the estimated valuation of the development. Mr. Turner stated that there were high-tech tenants interested in leasing the space. He also stated that the leasing agreements would be for a five to ten year term. Discussion followed and it was moved by Doug Shaw and seconded by Tim Brancheau that the request by Insignia Commercial Group for tax abatement on Building II be granted. The motion passed unanimously. 6. Preliminary Discussion of City of Regensburg (Germany) Proposal to Establish a Trade Relationship Between the Cities of Coppell and Regensburg Isabelle Moro led discussion on the City of Regensburg Trade Relationship proposal. Discussion followed with questions that remained unanswered, as the proposal was very general in detail. Tom Morton mentioned that MJ Designs, Kraftmade, and Mannatech Inc. have shown an interest in the trade relationship. Tom felt that these companies would be good sources to gather information and questions in response to the proposal. Ron Pankey and Tom Morton will be putting together a response to the proposal for the Partnership's review before the end of July. 7. Update on Current & Potential Commercial/Industrial Developments Gary Sieb presented to the Partnership updates on developments indicating locations on the zoning map and with handouts. Gary informed the Partnership that an Express Mail Postal Service will be leasing a 116,000 sq. ft. building with the Lincoln Properties located at the SW corner of Wrangler, and that this will be a long term lease. MEPC has begin construction on a 300,000 sq. ft. building located at the NW corner of Gateview Blvd. and Royal Lane. Gary said there was some question as to the ownership of a vacant tract South of Vari-Lite; rumor had it that Lincoln Properties had a contract to buy the acreage. Gary reviewed the development potential located at McArthur and Beltline. 8. General Discussion and other Business Tom Morton will be providing copies of an article on Tax Abatement from the Texas Business Journal, Gary Sieb will be viewing the Coppell Video around July 20th and the Partnership is invited to view with him. Mary Ann Kellam announced the Chamber Luncheon on August 20th to be at the Las Colinas Country Club for the first public viewing of the Video. COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP Wednesday, July 9, 1997 Meeting Time: Meeting Place: 7:00 p.m. (Open to the Public) 2nd Floor Conference Room Coppell Town Center Notice is hereby given that the Economic Development Partnership will meet in regular session on Wednesday, July 9, 1997 at 7:00 p.m., in the 2nd Floor Conference Room at the Coppell Town Center, 255 Parkway Boulevard, Coppell, Texas. The purpose of the meeting is to consider the following items: Item 1: Call to Order Item 2: Approval of Minutes: June 4, 1997 Item 3: Briefing by City Attorney on evaluating tax abatement applications Item 4: Presentation of City's Projected Tax Revenues (Beach) Item 5: Consideration of Request by Insignia Commercial Group for Tax Abatement for a second 367,000 s. f. Office/Warehouse Building located on Airline Drive (Sieb/Beach/Moro) Item 6: Preliminary Discussion of the City of Regensburg (Germany) Proposal to Establish a Trade Relationship Between the Cities of Coppell and Regensburg (Moro) Item 7: Update on Current & Potential Commercial/Industrial Developments (Sieb) Item 8: General Discussion and Other Business Adjournment CERTIFICATE I certify that the above notice of meeting was posted at 5:00 p.m. on the bulletin board at the Town Center of the City of Coppell, Texas, on Thursday, July 3, 1997. S �Q Scarlett Hovland, Senior Administrative Secretary COPPELL ECONOMIC DEVELOPMENT PARTNERSHIP Wednesday, July 9, 1997 Meeting Time: 7:00 p.m. (Open to the Public) MeetingPlace: 2nd Floor Conference Room Coppell Town Center Notice is hereby given that the Economic Development Partnership will meet in regular session on Wednesday, July 9, 1997 at 7:00 p.m., in the 2nd Floor Conference Room at the Coppell Town Center, 255 Parkway Boulevard, Coppell, Texas. The purpose of the meeting is to consider the following items: Item 1: Call to Order Item 2: Approval of Minutes: June 4, 1997 00'�� Item 3: Briefing by City Attorney on evaluating tax abatement applications Item 4: Presentation of City's Projected Tax Revenues (Beach) Item 5: Consideration of Request by Insignia Commercial Group for Tax Abatement for a second 367,000 s.f. Office/Warehouse Building located on Airline Drive (Sieb/Beach/Moro) L7rf Item 6: Preliminary Discussion of the City of Regensburg (Germany) Proposal to Establish a Trade Relationship Between the Cities of Coppell and Regensburg (Moro) Item 7: Update on Current & Potential Commercial/Industrial Developments (Sieb) Item 8: General Discussion and Other Business t Adjournment - ' " CERTIFICATE I certify that the above notice of meeting was posted at 5:00 p.m. on the bulletin board at the Town Center of the City of Coppell, Texas, on Thursday, July 3, 1997. Scarlett Hovland, Senior Administrative Secretary