Amberpoint BP2-AG021008~.~A~ENDA REQUEST FORM
CO?PELL
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.
APPROVED BY
CITY COUNCIL
ON ABOVE DATE
~otion to Approve
~ - Tunnell
5 - Raines
Vote - 6-0
Stover absent
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:
ViEW
DIR : ? ... FIN. REVIEW: ? CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $Staples- 1 Agenda Request
DRAFT
October 2, 2002
3.2 Annual Payment 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 ftrst 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 ~ Fees. The City agrees to waive building permit and
development pennit fees (excluding impact fees) associated with construction of the
Improvements by Company not to exceed One Hundred Thousand 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 ~. The Cc, m~a::y Owner agrees to enter into an agreement with
Amberpoint for the construction the Improvements, and for the purchase of the Land and
Impmvemants upon Completion of Construction. Ccr..~a.':y 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 Certiflcat . Beginning February 1 of the calendar year immediately
following the first Grant Year and continuing on February 1 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
43772