BM 2000-09-06 EcDevCOPPELL ECONOMIC DEVELOPMENT COMMITTEE
September 6, 2000
MINUTES
The Coppell Economic Development Committee met at 7:00 p.m. on Wednesday, September 6,
2000 at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell,
Texas 75019. The following were present: Chairman Bill Rohloff, 'Vice -Chairman Gary Roden,
Bruce Bradford, Jay Thompson, Tim Brancheau, Bill Herries, Stan Morton, Karen Hunt, City
Manager Jim Witt, Gary Sieb, Chad Beach, Andrea Roy, and Councilmember Doug Stover.
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 Stan Morton and seconded by Karen Hunt that the minutes of the
August 2nd and August 21st meetings be approved as recorded. The motion passed
unanimously.
At the request of City Manager Jim Witt, Item #8 was moved to the front of the agenda.
8. Update on Freeport Exemption
Mr. Witt updated the Committee on the status of the Freeport Exemption. Mr. Witt
explained that the City will transfer the $1.2 million to an escrow account designated by
CISD on September 15th and on September 18, 2000, CISD is expected to pass the final
resolution. During the next few months and through January City staff will be working
out the figures with CISD. Bill Rohloff and Jim Witt thanked all involved in getting the
Freeport Exemption passed.
3. Request by Catellus Commercial Group for Tax Abatement
Gary Sieb introduced Stephen Bryan with Catellus Commercial Group. The Catellus
Commercial Group is proposing to build a two-story, 100,000 square foot office building
within the Gateway Corporate Center. The proposed building is designed as two separate
buildings connected by a large central atrium with an adjacent courtyard. The building
will front both the LBJ Freeway and Dividend Drive, designed with two front facades.
The projected number of employees at the facility is 350-400 for a conventional office
use, with approximately 5-10% of those employees possibly residing in Coppell. Catellus
is currently working with a potential tenant that is interested in occupying the entire
building. Mr. Bryan indicated that the potential tenant has a national presence and
desires the exposure and visibility on LBJ Freeway. Catellus Commercial Group will be
the leasee; however, the potential tenant has indicated an interest in purchasing the
building. Catellus wishes to complete negotiations with the tenant in 7-10 days and begin
construction by September 18th.
Chad Beach followed with the review of a summary of the results of the econometric
model for the subject site. Catellus is asking for a 5 -year, 75% tax abatement.
Discussion followed. It was determined that a condition of the approval be added in
order to ensure that the building is completed in a timely manner.
Councilmember Doug Stover indicated that as sites are steadily being developed, it
would be beneficial to discuss the City's policy on granting abatements. It was discussed
that City Council and the Committee meet jointly at some point to discuss policies on tax
abatements. Councilman Stover will initiate.
It was moved by Bill Herries and seconded by Jay Thompson that the Catellus
Commercial Group be granted a 5 -year, 75% tax abatement, with the condition that the
certificate of occupancy for the building(s) be issued prior to December 31, 2002. It was
passed unanimously.
4. Request by Lincoln Property Company for Tax Abatement
Gary Sieb introduced Tom Kuhlman with Lincoln Properties. Lincoln Properties is
currently constructing a 115,200 square foot building at the SW corner of Wrangler and
Lakeshore Drives for Charles Schwab. This building will house Charles Schwab's
Fulfillment/Data Center, where statements and publications will be printed and
distributed. The projected number of employees is 200, with approximately 50 of those
possibly residing in Coppell. Lincoln Properties has secured a 10 -year lease with Charles
Schwab. Bill Herries questioned Lincoln's status on the Freeport Exemption and Mr.
Kuhlman indicated that he had referred the information from the City to his superiors.
He also indicated that they have recently sold a large portion of their buildings to Reef
Development Company and no longer control any buildings that might fall under the
Freeport Exemption status. Mr. Kuhlman indicated that he would refer the Committee's
concerns to Reef and look into the matter further. Chad Beach followed with the review
of a summary of the results of the econometric model for the subject site. Lincoln
Properties is asking for a 5 -year, 75% tax abatement. Gary Sieb indicated that a request
for an amendment to the site plan is currently being processed and will be heard by City
Council on September 12th. There were some development concerns with the proposed
changes to the site.
It was moved by Stan Morton and seconded by Bill Herries that the request for Tax
Abatement by the Lincoln Property Group be deferred until October after site plan
amendments are approved by City Council. Motion passed (7-1) opposed -Karen Hunt.
5. Request by Prentiss Properties to amend the Tax Abatement Agreement for the
IBM Call Center
Chad Beach briefed the Committee on the request by Prentiss to amend the existing tax
abatement. Prentiss' initial estimated values of the improvements and tangible personal
property were inaccurate. The actual value of the building has been reduced from $17
million as noted on the agreement to $9.8 million. In addition, the value of the tangible
personal property has been reduced from $6.5 million as noted on the agreement to
$450,000. Prentiss has indicated that budget errors were made on their part. Chad Beach
indicated that revenue amounts would decrease as a result of the changes. Discussion by
the Committee followed. Prentiss has also requested that the amendment be retroactive.
The change can not be made retroactive, only amended from this point forward. The
remaining four-year term of the tax abatement agreement may reflect the revised values.
It was moved by Stan Morton and seconded by Karen Hunt that the amendment to the tax
abatement by Prentiss Properties for the IBM Call Center be granted with the noted
revised values. It was passed unanimously.
6. Request by Prentiss Properties to amend the Tax Abatement Agreement for
Lakeview Center
Chad Beach briefed the Committee on the request by Prentiss to amend the existing tax
abatement. Again, Prentiss' initial estimated values of the improvements were inaccurate.
However, in this case, the error reduces the value of the building from $8 million as noted
on the agreement to $5.3 million, an amount below the minimum $5.5 million. Prentiss
has agreed to maintain the taxable value of improvements at $5.5 million, satisfying the
deficiency. Discussion by the Committee followed.
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It was moved by Bruce Bradford and seconded by Gary Roden that the amendment to the
tax abatement by Prentiss for Lakeview Center be granted with the noted revised values.
It was passed unanimously.
7. Request by Beck Realty Group to amend the Tax Abatement and Economic
Development Incentive Agreements for GTENerizon
Chad Beach briefed the Committee on the request by Beck Realty Group to extend the
completion date for Building "B" noted in both the Tax Abatement and Economic
Development Incentive Agreements for the GTE site. As a result of a recent merger,
GTE is now known as Verizon and due to the extended length of time to complete the
merger, Verizon is requesting additional time to complete the proposed Building `B".
Verizon wishes to extend the deadline from December 31, 2000 to April 1, 2002.
Discussion by the Committee followed. The Committee determined that it did not want
to continue granting extensions and wished to add a condition to the approval that this
extension shall be granted only once.
It was moved by Karen Hunt and seconded by Jay Thompson that GTENerizon be
granted an extension for completion of building `B" until April 1, 2002, as noted in both
the Tax Abatement and Economic Development Incentive Agreements, with the
condition that this is the only extension granted. It was passed unanimously.
9. Update on development
Gary Sieb updated the Partnership on some of the current development applications
scheduled for Planning Commission and City Council.
Adjournment
With no further business to discuss, it was moved by Karen Hunt and seconded by Gary
Roden that the meeting adjourn. By unanimous vote, the meeting was adjourned at 8:45
p.m.
Respectfully submitted,
Andrea L. Roy
COPPELL ECONOMIC DEVELOPMENT COMMITTEE
Wednesday, September 6, 2000
Meeting Time: 7:00 p.m. (Open to the Public)
Meeting Place: 2nd Floor Conference Room, Coppell Town Center
Notice is hereby given that the Economic Development Partnership will meet on Wednesday September 6,
2000 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:
WORK SESSION (Open to the Public)
Item 1: Call to Order.
Item 2: Approval of Minutes: August 2, 2000 and August 21, 2000
Item 3: Consideration of a request by Catellus Commercial Group for tax abatement for a
100,000 sq. ft. office building on 7.3 acres located at the NE corner of LBJ Freeway and
Freeport Parkway.
Item 4: Consideration of a request by Lincoln Property Company for tax abatement for a 115,200
sq. ft. oflicelwarehouse development on 8.6 acres located at the comer of Wrangler and
Lakeshore Drives.
Item 5: Consideration of a request by Prentiss Properties to amend the tax abatement agreement
for 1177 Belt Line Road (IBM Call Center) located at the SW corner of Belt Line Road
and Airline Drive. (Tax Abatement Reinvestment Zone #22)
Item 6: Consideration of a request by Prentiss Properties to amend the tax abatement agreement
for 1199 Belt Line Road (Lakeview Center) located at the NW Corner of Belt Line Road
and Wrangler Drive. (Tax Abatement Reinvestment Zone #23)
Item 7: Consideration of a request by Beck Realty Group to transfer the tax abatement agreement
for GTE to an affiliate or new party by GTE located at the NE comer of S.H. 121 and
Canyon Drive. (Tax Abatement Reinvestment Zone #21)
Item 8: Discussion and Update on Triple Freeport Tax Exemption (Witt)
Item 9: Update on development within the City (Planning).
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 Friday September 1, 2000.
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Scarlett Hovland, Secretary