Duke Lesley-CS060726
(12/18/2009) Ken Griffin - Duke incentive letterPage 1
From: Mindi Hurley
To:Beach, Chad; Griffin, Ken; Phillips, Clay; Witt, Jim
Date: 7/26/2006 4:21 PM
Subject: Duke incentive letter
Attachments:Lesley Tract - Incentive offer(2).doc
Here is the revised incentive letter to Duke that now includes the rebate of up to $600,000 in rollback taxes and the 75%
waiver/credit of Roadway Impact Fees. I'm not sure how to address the 4-lane divided versus 4-lane undivided issue in this
letter, which also impacts the reduction of required right of way issue so I will probably leave that out of the letter so it
can't be used against us at a later point if it isn't explained clearly. I figure those items can be addressed verbally, and they
are already aware that we are willing and prefer for them to have undivided for the truck traffic.
I did add that the construction of the hotel must begin within the first 5 years of development. I did not address the issue
of the monetary penalty if it does not. Do you want me to address that in this letter?
Let me know if you see any changes that need to be made or if there is anything I have left out of the letter.
Mindi Hurley
Economic Development Coordinator
City of Coppell
255 Parkway Blvd.
Coppell, TX 75019
(972) 304-3677
(972) 304-3673 (fax)
www.ci.coppell.tx.us
July 26, 2006
Jeff Turner
Senior Vice President
Duke Realty Corporation
5495 Belt Line Road, Suite 360
Dallas, TX 75254
RE: Lesley Tract
Dear Jeff,
As previously discussed, City Council reviewed your proposed site plan for the Lesley
Tract, and Council is excited about the plan you all have put together as well as the
potential development that will soon take place at this site. Based on preliminary
discussions, the city is prepared to offer the following incentives:
The city will provide water/sewer utility assistance of up to $3,000,000 to be
reimbursed as work is completed and must include the looping of a 16” water line;
The city will provide a signal at the intersection of Dividend and Belt Line Rd., which
equates to a value of $200,000 in savings for Duke;
The city will adjust the Major Thoroughfare Plan as well as provide assistance in
discussions with TxDOT to facilitate a connector road to IH635E, which equates to a
value of $1,000,000 in savings for Duke;
The city will rebate back to Duke up to $600,000 of the city’s portion of rollback
taxes as they become payable to the city;
The city will waive 75% of the Roadway Impact fees for the site;
The city will support and provide assistance in establishing a Public Improvement
District (PID) for the area, which will enable Duke to issue up to $2,500,000 in tax
exempt bonds for public improvements to the site. Although a PID is the city’s
preference, staff is open to discussions on the creation of a Tax Increment Financing
District (TIF) in lieu of the PID if desired by Duke.
All incentives outlined above will be contingent upon final approval by City Council and
the following conditions:
1) Reimbursement for the construction of utilities must be water/sewer related and must
include the looping of a 16” water line, and
2) The development must include a full-service hotel that has self-contained meeting
space. The preference of City Council is to have a conference facility attached to the
hotel, but at a minimum, the hotel must provide some meeting space if the market does
not demand a full conference/banquet facility. Construction of the hotel must begin
within the first 5 years of development.
Once you review these incentives, our City Attorney will be advised of the preliminary
offer to begin work on final documents that will need to be approved by City Council. If
you have any questions, please don’t hesitate to call me or Mindi Hurley at (972) 304-
3677.
Sincerely,
Clay Phillips
Deputy City Manager
CC: Jeff Thornton, Duke Realty
Alex Bennett, Duke Realty
Ken Griffin, City of Coppell
Chad Beach, City of Coppell
Jim Witt, City of Coppell
Mindi Hurley, City of Coppell