Amberpoint BP 2-CS020916 (2)T H E C 1 T Y O F
C~PPELL
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MEMORANDUM
DATE: September 16, 2002
TO: Ken Griffin, Director of Engineering
Gary Sims, Director of Parks & Recreation
Greg Jones, Chief Building Official
FROM: Andrea Roy, Economic Development
SUBJECT: Staples Economic Development Incentive A ear ement
As you are aware, the Staples® organization is currently seeking development approval for a new
228,500 squaze-foot warehouse/distribution center in Transwestem's AmberPoint Business Park.
In order for Coppell to sewwe the Staples® project in this extremely competitive industrial real
eshate market, the City offered a variety of financial and other development related incentives.
Part of the incentive package offered to Staplesm included a $100,000 permit and development fee
waiver. To satisfy this commitment, the following Departments will he responsible for w~
all development fees associated with the Staples® project, capped at $100,000:
^ Engineering-sewer, water, early grading, inspection, etc.
^ Planning & Community Services-development applications
^ Leisure Services-Tree Mitigation
At the time fees are due, staff members will assess and then waive those fees. The exact dollar
amount of the assessed fees must be forwarded to me for recordation. Once the balance reaches
S 100,000, alt related departments will be notified and any additional required fees should be
collected in the traditional manner. Based on staffs estimates, the project fees will likely reach
$100,000 with the waiver of the Engineering, Planning, and Tree Mitigation Fees. For this reason,
only the Building Inspectloos Department will collect all nermit and inspection fees related
to this project. If, at the completion of the project, the balance has not reached the $100,000
limit, the City will then rebate the remaining portion to Staplesm or it's designee.
Please forwazd this information to the affected staff' members within yow department. Should
you have any questions, please call me at extension 3677. Once complete, a copy of the formal
incentive agreement will be provided to you for yow records.
cc: Jim Witt, City Manager C
Chad Beach, Asst. Director of Finance 1 fl ' b' L
Gary Sieb, Director of Planning
Marcie Diamond, Asst. Director of Planning
233 PARKWAY * P. O.SOX 47^ * COPPE LL TX 75019 * TEL 972/462 0022 * FAX 97Z/]04 ]67]
DRAFT
October 2, 2002
3.2 Annual Pavment Date. The Annual Sales Tax Grants shall be paid on April 1 of
each calendar year this Agreement is in effect beginning on April 1, of the calendar year
immediately following the first Grant Year (the "Annual Grant Payment Date"). For example, if
the final certificate of occupancy for Company's occupancy of the Improvements is issued
August 1, 2003, the first Grant Year shall be from January 1, 2004 through and including
December 31, 2004, and the first Annual Sales Tax Grant Payment Date would be April 1, 2005.
3.3 Current Revenue. The City's obligations each Grant Year shall be payable from
current revenue, and under no circumstances shall the City's obligation hereunder be deemed to
create any debt within the meaning of any provision of the Texas Constitution or statute. The
Annual Sales Tax Grants shall be paid from lawfully available funds that have been appropriated
by the City. Further, City shall not be obligated to pay any commercial bank, lender or similar
institution for any loan or credit agreement made by the Company. None of the City's
obligations under this Agreement shall be pledged or otherwise encumbered in favor of any
commercial lender and/or similar financial institution.
3.4 Grant Limitation. Under no circumstances shall City be obligated to pay any
Annual Sales Tax Grant unless there is available Sales Tax Receipts. City shall not be required
to provide any Annual Sales Tax Grant during the term of this Agreement for which City has not
received the Sales Tax Receipts from the State of Texas for such Grant Year attributed to sales
and are tax paid as a result of the sale of a Taxable Item by Company consummated at the
Improvements.
3.5 Buildine Permit Fees. The City agrees to waive building permit and
development permit fees (excluding impact fees) associated with construction of the
Improvements by Company not to exceed ne un reaThousand Dollars ($100,000). ~ ,
ARTICLE IV
CONDITIONS TO ANNUAL GRANTS
Company shall during the term of this Agreement strictly comply and satisfy each of the
following conditions.
4.1 Improvements. The ~ Owner agrees to enter into an agreement with
Amberpoint for the construction the Improvements, and for the purchase of the Land and
Improvements upon Completion of Construction. ~ Owner shall cause Commencement
of Construction of the Improvements to occur on or before December 31, 2002 and subject to
events of Force Majeure to cause Completion of Construction to occur on or before December
31, 2003. Company agrees to lease the Improvements and occupy the Improvements on or
before December 31, 2003.
4.2 Sales Tax Certificate. Beginning February 1 of the calendar year immediately
following the first Grant Year and continuing on February I of each calendar year thereafter
during the term of this Agreement, the Company shall provide the City with a Sales Tax
Certificate. For example if the final certificate of occupancy for Company's occupancy of the
STAPLES ECONOMIC DEVELOPMENT INCENTIVE -Page 5 assn
AGENDA REQUEST FORM
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COPPELL
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DEPT; Planning
DATE: October 8, 2002
ITEM #: 8!D
ITEM CAPTION: Consider approval of an Economic Development Incentive Agreement between the City of
Coppell and Staples Contract and Commercial, Inc., and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: This proposed agreement is part of an economic development incentive package
being offered to Staples for constructing and relocating into a new facility within the City of Coppell. This
proposed agreement provides Staples with an annual sales tax rebate program, as well as, the waiver of building
construction fees not to exceed $100,000. A separate agreement, the property tax abatement agreement, will come
forward at the October 22, 2002 City Council meeting, after the legal notification requirements have been satisfied.
FINANCIAL COMMENTS:
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Agenda Request Form -Revised 09102 Document Name: $Staples-]Agenda Reques[