BM 2001-11-07 EcDevCOPPELL ECONOMIC DEVELOPMENT COMMITTEE
November 7, 2001
MINUTES
The Coppell Economic Development Committee met at 6:00 p.m. on Wednesday, November 7,
2001, at Coppell Town Center, 2nd Floor Conference Room, 255 Parkway Boulevard, Coppell,
Texas. The following were present: Chairman Bill Rohloff, Bruce Bradford, Jay Thompson,
Dennis Onalaja, Tim Brancheau, Bill Herries, Mary Ann Kellam, Robert Key, Councilmember
Marsha Tunnell, and Councilmember Jayne Peters, City Manager Jim Witt, Chad Beach, Gary
Sieb and Andrea Roy.
Call to Order.
The meeting was called to order at 6:10 p.m.
Approval of Minutes
It was moved by Mary Ann Kellam and seconded by Dennis Onalaja that the minutes of
the October 3,2001 meeting be approved as recorded. The motion passed unanimously.
Request by KPT Inc. for tax abatement for a 35,000 square-foot printing facility
within the Koll Center Coppell building (700 S. Freeport Parkway).
Mr. Kurt Pyka, President and CEO of KPT Inc. was present. Mr. Pyka spoke to the
Committee, describing the proposed printing facility, giving the background on the
company, which has been in business since 1977. The proposed printing facility will
contain approximately 7,000 square-feet of office, 17,000 square-feet of production, with
the remaining area serving as warehouse. KPT Inc. will be the first tenant in the recently
completed 240,000 square-foot Koll project. Mr. Pyka indicated that the site's close
proximity to the Mail Distribution facility is key factor. Mr. Pyka also indicated that the
value of the company's tangible personal property is approximately $2.5 million and the
company generates approximately $7 million in sales annually, with half ($3.5 million)
generating sales tax revenue.
Chad Beach followed with the review of a summary of the results of the econometric
model, indicating that KPT Inc. is requesting a tax abatement based on either a minimum
level of sales tax generated to the City or the value of Furniture, Fixtures, & Equipment
for KPT Inc. The Committee briefly discussed the item, expressing that the subject
company would be an asset to the community and generate a level of sales tax far beyond
the abatement amount.
Chad Beach indicated that the company would generate sales tax revenue; however,
linking the terms of the abatement to the sales tax is more difficult to monitor that linking
the abatement to the value of the personal property. While the applicant indicated that
the current value of the tangible personal property is $2.5 million, it is known that
equipment depreciates. It was recommended to lower the minimum personal property
value to $2 million, in order to prevent the applicant from becoming disqualified, due to
depreciation.
It was moved by Bill Herries and seconded by Jay Thompson that KPT Inc. be granted a
5-year, 50% abatement, based on a minimum personal property value of $2 million. It
was passed unanimously.
Chad Beach exited the meeting to inform Mr. Pyka of the Committee's decision,
explaining the terms of the agreement. At this time, Chairman Bill Rohloff swore in re-
appointed Committee member Bruce Bradford.
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Chad Beach rejoined the meeting to inform the Committee that item #3 needed to be re-
opened for further discussion. Item #3 was re-opened for discussion. Mr. Beach
indicated that the applicant's personal property will depreciate to a level below $2 million
and recommended that the terms of the abatement be linked to the level of sales tax
generated by KPT Inc.
It was moved by Tim Brancheau and seconded by Bill Herries that KPT Inc. be granted a
5-year, 50% abatement, provided the City receives a minimum $30,000 or more annually
from the collection of the one percent (1%) local sales and use tax. It was passed
unanimously.
Request by Centex Commercial Development to amend minimum requirements for
the tax abatement for a 71,144 square-foot office building (Vista Ridge Addition) on
a 7.017 acre portion of a 25.93 acre tract of land.
Jay Thompson exited the meeting due to a conflict of interest, as he is employed by
Centex. Dan Anderson with Centex Commercial Development again presented. The
applicant requested that the terms of the tax abatement for the proposed 71,144 square-
foot building, previously recommended for approval by the Committee, be revised.
Mr. Anderson indicated that the estimated value of the building may be approximately
$4-4.5 million, but could reach the $5.5 million minimum, depending upon leasing by
Centex. Mr. Anderson has requested a 60% abatement based on a minimum of $4
million and a 75% abatement if the $5.5 million is reached. Mr. Anderson indicated that
the other Centex divisions, which were to initially occupy half the building, have not yet
signed a lease and are still in negotiations. Mr. Anderson concluded and exited the
meeting.
The item was briefly discussed among Committee members and it was determined that
the Committee wished to remain consistent in its recommendations and maintain
abatement percentages of 25, 50, & 75, not to begin a trend of granting 60% abatements,
which also exceeds the standard for this improvement value and type of use. Chad Beach
followed with the review of a summary of the results of the econometric model.
It was moved by Tim Brancheau and seconded by Dennis Onalaja that Centex
Commercial Development be granted a 5-year, 50% abatement based on a minimum
improvement value of $4 million, or a 5-year, 75% abatement if the minimum
improvement value reaches $5.5 million. It was passed unanimously. The applicant was
informed of the Committee's decision.
Jay Thompson returned to the meeting.
Request by Spears Manufacturing to amend the existing tax abatement for 4250
Patriot Drive (Bldg. "F") within the D/FW Trade Center.
Andrea Roy briefed the Committee on the request made by Spears Manufacturing, who
purchased the subject property from the original owner and recipient of the tax
abatement. Spears has requested that the minimum value of improvements, as noted in
the tax abatement agreement, be decreased from $20 million to $10 million, still
exceeding the minimum $5.5 million investment value. As one year of the abatement has
passed, the amended value will be applied to the remaining four years of the abatement
period.
It was moved by Bill Herries and seconded by Bruce Bradford that Spears Manufacturing
(4250 Patriot Drive) be granted an amendment to the existing Tax Abatement Agreement
to reduce the minimum improvement value from $20 million to $10 million for the
reaming four years of the abatement period. It was passed unanimously.
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Discussion regarding possible incentives for existing building located at 500 Airline
Drive (formerly MJ Designs).
Andrea Roy briefed the Committee on the recent purchase of the former MJDesigns
facility by Ablah Enterprises. The owner is making numerous improvements to the
facility and actively marketing the property. Staff has been in contact with the new
owners, who have expressed that the area competitors are providing tax abatements and
extensive sign-on discounts; however, the original property owner received a tax
abatement which has already been utilized, placing the current owners at a disadvantage.
The Committee indicated their desire to occupy the facility, but wished to discuss
incentives with specific tenants that may individually qualify.
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Economic Development Topics of Consideration-Staffing, Chamber of Commerce,
Hot Spots, and Incentives.
The Committee briefly discussed Chamber of Commerce staffing, with the understanding
that the acting Chamber Director had officially been made the Director. The role of the
Chamber was also discussed and it was suggested that staff confirm the new Chamber
Director's appointment and invite her and the Chamber President to our next meeting to
discuss each entities goals and objectives, business retention (west side), and define the
roles of the Committee and the Chamber. Staff will put Bill Rohloff in contact with the
Chamber Director and President. Staff will formally invite the Chamber to the next
meeting.
Additionally, staff briefed the Committee on the four "Hot Spots" which were deemed
priorities at the October Meeting, further clarifying the recommended use according to
the Comprehensive Plan and indicating development obstacles. Staff will look into Ms.
Lesley's estate and Bruce Bradford will contact H.T. Ardinger regarding the status of his
property and report the findings at the December meeting.
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Update on development within the City
Staff briefed the Committee on new development in the City, informing the Committee of
upcoming development cases. The City Manager briefed the Committee on the status of
the possible relocation/consolidation of Staples, which has been placed temporarily on
hold. Mr. Witt also informed the Committee that a large carpet manufacturer/distributor
is considering relocation to Coppell and he is working with the developer in recruitment
efforts. It was also mentioned that the construction of S.H. 121 along the northern edge
of the City has been moved up.
Adjournment
With no further business to discuss, it was moved by Bill Herries and seconded by Tim
Brancheau that the meeting adjourn. By unanimous vote, the meeting was adjourned at
approximately 8:05 p.m.
Respectfully submitted,
Andrea L. Roy