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BM 1999-01-06 EcDevCOPPELL ECONOMIC DEVELOPMENT PARTNERSHIP January 6, 1999 MINUTES The Coppell Economic Development Partnership met at 7:00 p.m. on Wednesday, January 6, 199 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, and Councilmembers Doug Stover, Larry Wheeler and Jayne Peters. 1. Call to Order Chairman Bill Rohloff called the meeting to order at 7:00 p.m. 2. Approval of Minutes It was moved by Tim Brancheau and seconded by Gary Roden that the minutes of November 18, 1998 be approved as recorded. The motion passed unanimously. 3. Request by CFH-FTAX Limited Partnership for Tax Abatement Mr. Richard Crow with Myers & Crow Company Ltd was present to represent CFH-FTAX Limited Partnership in requesting a tax abatement for the 117,260 sq. ft. Royal Business Center project to be located at the Southeast intersection of Royal Lane and Northpoint Drive in Coppell, Texas. Mr. Crow provided pictures of the building and described it as a single office/warehouse duplex building with rear loading, and a high ratio of parking. He hopes to lease to one tenant, but will welcome two tenants if need be. The lease term will be for a 5 - 10 year time period. This is the sixth project by Myers & Crow Company in Coppell. He said that the previous tax abatements have been critical to the success of the Coppell projects and have been instrumental in attracting new companies to Coppell. Mr. Crow departed the meeting and Chad Beach reviewed a summary of the results of the econometric model for CFH-FTAX Limited Partnership. He explained that CFH-FTAX Partnerships total taxable assets are valued at $3.5 million. Chad suggested that the Partnership consider a 50% abatement rather than a 75% abatement since the total assets did not reach the recommended $5.5 million. Chad also explained that each January 1 the taxable assets for a building are appraised by the Dallas Central Appraisal District. Discussion followed. Pamela Kurtzman offered the motion that CFH-FTAX Partnership request for tax abatement is granted based on the total taxable assets calculated each January 1. If the total taxable assets are at $0 to $3.5 million, no abatement would be granted; if the total taxable assets total $3.5 to $5.5 million, a 50% abatement be granted, and if their total taxable assets total $5.5 million or over a 75% abatement be granted. 4. Request by the Industrial Group for Tax Abatement Mr. Charles McClure and Mr. John Walsh with the Industrial Group presented to the Partnership the proposed development of a 290,000 square foot office park on a 21.6 acre site at the corner of S.H. 121 and Corporate Park Blvd. in the City of Coppell. The development will consist of 5 office buildings including 4 single -story, multi -tenant office buildings ranging in size from 27,500 to 55,550 square feet and one 4 - story 126,400 square foot office building. With the availability of fiber optics at this site and the proximity to GTE, the typical tenant for this project will be both local and national high-tech companies. The lease terms will be from 5 to 15 years. The building will have a campus like setting with full landscaping, which will be cohesive to the GTE building. The development will take approximately 24 months to completion and will be built in two phases. Phase I will consist of the 4 single -story buildings and Phase II will be the construction of the 4 -story building. Mr. McClure and Mr. Walsh departed the meeting and Chad Beach continued with the review of a summary of the results of the econometric model for the Industrial Group. Discussion followed. Karen Hunt offered the motion that the Industrial Group receive a 5 -year, 75% abatement for both phases, as long as construction on Phase II will commence within 30 months of the adoption of the tax abatement agreement. 5. Update on the Impact of a Freeport Exemption Mr. Bill Rohloff shared with the Partnership that he had a telephone conversation with Mr. Buddy Echols, Superintendent of Coppell ISD concerning the impact of a Freeport Exemption on the Coppell ISD study by Moak, Casey & Associates, LLP. Mr. Echols understood the importance and the urgency of the issue. Mr. Echols shared with Bill that the study by Moak, Casey & Associates had been given to the CISD's finance advisor. He also stated that at the January school board meeting the issue would be addressed, however the school bond issue is first priority at this time for the school board. It was doubtful that the triple freeport issue could be decided before the FourSeasons deadline of January. Bill provided copies of a second letter sent to the Coppell community regarding a triple freeport exemption. Mr. Robert Key said approximately six calls were received at the school administrative offices concerning the letter. Bill mentioned he had received only 2 calls. Discussion followed with the question of how the developers could help convey the importance of the triple freeport tax exemption issue to the appropriate decision making boards. It was encouraged that developers be heard through written communication to the school board or to the Economic Development Partnership. Bill will keep the partnership informed as the study is evaluated by the school board. 6. General Discussion and Other Business Gary Sieb gave update on development activity going on in Coppell. 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 8:30 p.m. Respectfully submitted, Scarlett Hovland