Freeport NIP(7.6)-AG000222 ' ' ~ '- AGENDA R_k-~UEST FORM
(~..~~ ~TYT(~7~ETING: Febma~ 22, 2000 ITEM #_~
ITEM C~TION: Rehew and consider a recommendation from Coppe~ Economic Development
Com~ee for pa~icipafion ~ the cons~ction of Freepo~ P~ay t~ough a 380 grant to Duke-Wee~
Real~ Co~orafion.
SUBMITTED BY: Jim Witt
TITLE: City Manager
STAFF COMMENTS:
BUDGET AMT. $ AMT. EST. $ +k-BID
FINANCIAL COMMENTS:
Funds ~111 be provided by the Roadway Impact Fund.
DIR. INITIALS: FIN. REVIEW: ~ CITY MANAGER REVIE'~
Agenda Request Form - Revised 2/99 Document Name: !EDC
MEMORANDUM
Date: February 17, 2000
To: Mayor and Council r~..Q~~
From: Jim Witt, City Manage '-2:, ~-~.~<~
Subject: Freeport Parkway 380
On February 2, Duke-Weeks made a proposal to the Coppell Economic Development Comn~e~e~arding
participation in development of Freeport Parkway. The Committee has reviewed their propXo~sal, and on
February 16 at a special meeting made a recommendation to participate in the construction of Freeport
Parkway in an amount equal to 43.75% of the cost of the paving and water line construction, not to exceed
$593,936. Funds will be derived from the Street Impact Fee Fund and the Water Fund.
The following conditions were also attached to the recommendation:
1. The commencement of the Freeport Parkway construction begin no later than October I of
calendar year 2000, and be completed no later than July I, 2001. Also at that time, upon
completion of the street, 50% of the funds be granted to Duke-Weeks.
2. Building construction commence no later than October 1, 2001.
3. The Committee also attached a condition that the remaining 50% be released to Duke-Weeks
upon commencement of the construction or the completion of construction of 150,000 square feet
on the property in question.
we also attach the following conditions:
Staff
recommends
that
1. That development credits shall not be given on the firs 56.2~~of street ijl:t~lactxfees due to the
City, and that those fees be 100% payable to the City. For-F~e remalning/~t~ct fees, a
reduction of 75% credit shall be given.
Essentially this becomes a short-term loan, since our present policy allows a 100% credit of street impact
fees. We will be fronting money to Duke-Weeks to complete this street, which will serve as a main gateway
to Wagon Wheel. This appears to be an excellent way to fund the street without affecting our cash flow,
and to be repaid as development occurs. A parmership between the developer and the City will be a benefit,
not only in terms of economic development, but also to our general citizenry with regard to access to Wagon
Wheel Park. We have enclosed backup materials from the Economic Development Committee meetings, as
well as the estimated construction cost. Just a reminder that this project was reviewed by the Bond
Committee, but due to financial constraints was not included.
Staff will be available, of course, at the meeting to review this with you. If you have any questions or
comments, please do not hesitate to contact me. We will be reviewing this item in Work Session.
Wagon
0
el<view Drive Proposed c.)
Freeport Alignment
~osed
Befhel Rom
CZTY
EXHIBIT 1
Duke- ¢ks
REALTY CORPORATION
Ill
City Manager
City of Coppell CITY MANAGl:R
255 Parkway Boulev~d Cl~ OF C0~F/~ , ~
Coppell, Texas 75019
Re: Freeport Parkway Extension
Duke-Weeks proposed 141 acre development southeast of Wagon Wheel Park.
Dear Jim:
Thanks again to your office for giving me the opportunity to meet with the Coppell Economic
Development Committee on February 2"d. As the largest mixed-office / industrial company in the United
States, Duke-Weeks Realty Corporation is committed to continuing our high quality development program
in Coppell while working with your city government to provide a nice "fit" in the community. It is our
goal to develop a Class "A" park at Freeport Parkway and Bethel Road that will be welcomed by your
citizens, while attracting high quality users to the area. In addition, we anticipate a total development value
of over $72,000,000.00 (not including personal property or inventory) resulting in a huge tax base increase
to your city.
In order to move forward on this development and be competitive in the marketplace, it is important that
we receive the monetary assistance outlined at our last meeting. The cost of Freeport Parkway (and the loss
of net acreage attributed to that street) is too financially burdensome to a high-end park environment to
make the economics feasible. Thus, it is important that the City of Coppell assist us in the cost of this
thoroughfare. Hopefully, you will also benefit tremendously by improving access to your new park to the
northwest.
Please let me know if we can be of further assistance on this matter. Also, pass on my thanks to the other
members of the committee at tonight's meeting and call if you have any questions.
/_Senior,]Vi'ce President
~eeks Realty Corporation
5495 Belt Line Rd.
Suite 360
Dallas, TX 75240
Phone: 972.687.0006
SUMMARY OF FREEPORT PARKWAY CONSTRUCTION COST~
February 2, 2000
Freeport Parkway Paving: $995,793.85
Freeport Parkway Wastewater Service: $271,365.50
Freeport Parkway Water Service: $361,755.50
Freeport Parkway City Inspection Fees(4%): $65,156.59
Freeport Parkway Engineering Fees: $125,000.00
Total Project Cost: $1,819,071.44
COPPELL ECONOMIC DEVELOPMENT COMMITTEE
SPECIAL CALLED MEETING
Wednesday, February 16, 2000
Meetin~ Time: 6:00 p.m. (Open to the Public)
Meetin~ Place: 2nd Floor Conference Room
Coppell Town Center
Notice is hereby §iven that the Economic Development Committee will meet in a special called session on
Wednesday, February 16, 2000 at 6:00 p.m., in the 2nd Floor Conference Room at the Coppell Town Center,
255 Parkway Boulevard, and Coppell, Texas. The purpose of the meeting is to consider the followin§ items:
Item 1: Call to Order
Item 2: Approval of Minutes: February 2, 2000
Item 3: Discussion ora Loan Under Local Government Code Chapter 380 to Duke-Weeks Realty
Corporation for the construction of the extension of Freeport Parkway (Witt/Sieb)
Item 4: Discussion and Possible Adoption of Cornerstone Contract (Sieb)
Item 5: Discussion and Update on Triple Freeport Tax Exemption (Sieb/Witt)
Item 6: General Discussion and Other Business (Sieb)
Adjournment
CERTIFICATE
I certify that the above notice of meeting was posted at 12:00 p.m. on the bulletin board at the Town Center of
the City of Coppell, Texas, on Friday, February 12, 2000.
Scarier Hovland, Secretary
Public Notice Statement for ADA Compliance
The City of Copp¢ll acknowledges its responsibility to comply with the Americans with Disabilities Act of 1990. Thus, in order to
assist individuals with disabilities who require special service (i.e., sign interpretative services, alternative audio/visual devices, and
amanuenses) for participation in or access to thc City of Coppcll sponsored public programs, services and/or meetings, thc City
requests that individuals make requests for meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator, or other
designated official at (972) 462-0022 or (TDD 1-800-RELAY,TX, 1-800-7352989)
In Compliance with City of Coppell Ordinance No. 95724
Carrying of a concealed handgun on these premises or at any official political meeting in the City of Coppell is illegal.
Es ilegal Ilcvar consigo un anna dc fucgo oculta, adcntro dc cste edificio, o en cualquicr junta oficial dc politica cn la eiudad dc
Coppell.
COPPELL ECONOMIC DEVELOPMENT COMMITTEE
February 2, 2000
MINUTES
The Coppell Economic Development Partnership met at 7:05 p.m. on Wednesday,
February 2, 2000 at the Coppell Town Center, 2aa Floor Conference Room, 255 Parkway
Boulevard, Coppell, Texas 75019. The following were present: Tim Brancheau, Bruce
Bradford, Mary Ann Kellam, Pamela Kurtzman, Isabelle Moro, Start Morton, Gary
Roden, Bill Rohloff, Gary Sieb, Jay Thompson, City Manager Jim Witt, and
Councilmember Jayne Peters.
1. Call to Order
Chairman Bill Rohloff called the meeting to order at 7:05 p.m.
2. Approval of Minutes
It was moved by Start Morton and seconded by Tim Brancheau that the minutes of
the January 5, 2000 meeting be approved. The motion was passed unanimously.
3. Presentation by Duke-Weeks Realty Corporation
Jeff Turner of Duke-Weeks Realty Corporation, introduced himself and his
colleague Paul Brown to the Economic Development Committee. Jeff Turner
explained that Duke-Weeks is the nation's largest office and industrial developer.
The company has a broad presence in a number of metropolitan areas, including
the Dallas/Fort Worth area. In Coppell, Duke-Weeks has a prominent presence in
the Freeport North Industrial Park. Their company has under contract a 140-acre
tract of land that is bounded by Ruby Road to the north, Coppell Road to the east
and Bethel Road to the south. They intend to build 2,000,000 square feet of
industrial and flex tech space, a $72 million investment. In order to develop this
site as a first class industrial park with proper amenities, landscape buffers and
design features the building coverage of the project goes down which affects their
financials. Duke-Weeks Realty Corp. is requesting financial relief from the City
with regards to the cost of construction of Freeport Parkway required by the City
to be able to develop the 140-acre site. The City would benefit to have Freeport
Parkway extended because it will provide additional access to the City's Wagon
Wheel Park presently under construction.
Jeff Turner explained that the cost burden to extend Freeport Parkway should be
offset by the $72 million investment Duke-Weeks Corporation will be making in
the community. A member of the partnership posed the question if tax
abatements will be sought for tenants of this development. Jeff responded tax
abatements play a pivotal role in trying to attract quality tenants. Another
question posed to applicant related to the project's time line. According to the
representative, this project will be phased, and anticipated built-out will be in the
year 2004 or possibly 2005. Currently all of Duke-Weeks space is 100% leased
in the Dallas area. Duke-Weeks strategy is to build either speculative space,
build-to-suit or build for a fee. Mr. Turner then distributed to the Committee a
summary sheet detailing the total cost to extend Freeport Parkway to State Road.
He requested that the Partnership study the $1.8 million figure and possibly make
a recommendation this evening so it could be forwarded to City Council on
February 22aa .
Tim Brancheau mentioned that the Bond Committee had the extension of Freeport
Parkway from Bethel Road to State Road in the bond package because it gave
additional access to Wagon Wheel Park. The bond committee at the last minute
dropped the extension of Freeport Parkway and opted instead to include the
extension of Creekview Drive eastward in the bond package. City Manager Jim
Witt mentioned that he would like the City Engineer to review the cost summary
submitted by Duke-Weeks. Based on a very cursory review, staff could, at best,
only support up to 40% city participation. He did reiterate that the extension of
Freeport Parkway could provide the City another access to Wagon Wheel Park
and it would spur economic development.
Pam Kurtzman stated if the City decided to participate in the cost of extending
Freeport Parkway, she recommends the Economic Development Committee to
consider a 50% tax abatement rather than a 75% tax abatement should Duke-
Weeks apply for any tax abatements.
City Manager Jim Witt suggested the Committee may want to consider calling a
special meeting prior to the February 22nd City Council. Members of the
Committee agreed that a special meeting was necessary and it was set for
February 16, 2000 at 6:00 p.m. in the second floor conference room.
It was moved by Gary Roden and seconded by Mary-Ann Kellam that the City
might participate up to 40% of the cost to extend Freeport Parkway from Bethel
Road to State Road.
4. Discussion of Cornerstone Contract
Gary Sieb informed that Committee that the subcommittee had met last week with
Scott Williams and reviewed the final contract with him. Yesterday, Gary
received a rcdlincd contract from Scott that had a number of changes that the City
Attorney has not had time to review. Bill Rohloff stated that the subcommittee
expected to present a final negotiated document for the Committee's review and
adoption. Unfortunately it was not the case. Gary reviewed the proposed changes
of the contract. Some discussion followed with regards to the role of an
Economic Development Consultant. The Committee also expressed some
concerns with the changes made to the contract. Para Kurtzman mentioned she
was becoming uncomfortable with the contract. Gary Roden expressed a concern
for lack of performance standards. Tim Brancheau had trouble with Section 3A
of the contract and also mentioned the need for some performance measures to bc
included in thc contract. Jay Thompson stated some concern that thc fiduciary
duty to the CEDC and Cornerstone had been eliminated from thc contract. Hc
expressed the need for it and suggested the document be refined. He volunteered
to discuss the changes to the contract with the City Attorney.
5. Discussion and Update on Triple Freeport Tax Exemption
Gary Sieb reported that the City is still hoping to get the CISD Board to pass the
freeport tax exemption in February. Next week, Jim Witt, Gary Sieb, Chad Beach
and Bill Rohloff will be meeting with Buddy Echols the CISD Superintendent to
discuss the issue. The development community has told staff that if Coppell does
not pass the school's portion of the freeport tax exemption by the early part of this
year it will be loosing its competitive edge.
6. Update on Current Commercial and Industrial Projects
Isabelle Moro reported on several development projects. Burger King restaurant
is proposing to build a 4,000 square foot drive-through restaurant along the west
side of Denton Tap Road, approximately 135' from SH 121 Bypass. A retail
center is being proposed at the southwest comer of Denton Tap Road and W.
Town Center Blvd. immediately south of the Sonic restaurant. A daycare facility
is also being proposed directly to the west of the retail center. The owner of
Bruno's restaurant in Valley Ranch is looking to lease 3,000 sf of space in the
Riverchase Plaza at the northeast comer of MacArthur Blvd. and Beltline Road.
The request is also for a private club to serve beer and wine. Dr. Tom Sherill is
proposing a veterinary hospital along the south side of Beltline Road immediately
east of Blooming Colors Nursery. A 12,500 square foot office/warehouse facility
is also being proposed on the backside of the veterinary hospital. PSInet is
proposing to build a service yard behind the vacant office building at the
southeast comer of Lakeshore and Crestside Drives.
7. General Discussion and Other Business
With no other business to report, the meeting was adjourned at 9:05 p.m. by
unanimous vote.
Isabelle Moro