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ParkW CC-1/FP-AG 901113AGENDA REQUEST FORM CITY COUNCIL MEETING Nove~ 13, 1990 ne ITEM CAPTION: Consideration and approval of tax abate~ent application for Thacker Container Cc~pany. Consideration and approval of waiver of fees Cc~pany. SUBMITTED BY: (Director'~ Signatnre) ~;ALUATION OF ITEM: (up to $12,000 ) for Thack~_~ STAFF REP.: ~''~nA]an D~ Pal]iff OT~ER /EP.: BL~DGET AMT.: COF~ENTS: AMT. ESTIMATED: AMT. +/- BUDGET: FINANCIAL REVIEW BY: LEGAL REVIEW AGE~q~A REQ FORM.O588DS REVIL~rED BY ~M: The City With A Beautiful Future November 2, 1990 P.O. Box 478 Coppell, Texas 75019 214-462-0022 Mr. James C. Tubb 5200 Renaissance Tower 1201 Elm Street Dallas, TX 75270 RE: Thacker Container Company/Park West Commerce Center Dear Mr. Tubb: We received your letter of October 4 and will be sending the request to the City Council for their consideration at the November 13 City Council meeting. Let me correct one impression I think you have; that is, that your application for tax abatement has been denied. This is of some concern to me as it was stated in your October 4 letter; however, I note that in the October 30 letter you have amended that statement to say that I told you I felt it had little opportunity for approval by City Council and suggested instead that we consider requesting waiver of the fees. I will stand by that statement. The application you submitted was processed and presented to the Finance Committee prior to that phone call and discussion. At that time, we had not made a decision but were in the process of securing additional information, which was the purpose of my call to you. In regard to the refund of the application fee, I do not believe the city of Coppell will refund the fee since the application was processed (econometric computer model run) and presented to the Tax Abatement Committee. Per our adopted policy, the Committee then recommends an action to the City Council which makes all final decisions as to tax abatement and/or waiver of fees. The city Council has not made a final determination in either case; however, as I expressed my opinion to you, the tax abatement appears to have little opportunity for approval, but the waiver of fees is more likely to receive Council's approval. To proceed to obtain these decisions, I will process your request(s), the tax abatement application and the request for waiver of fees, and present them to the City Council for their decision on November 13, 1990. You are hereby notified of that fact and are invited to attend to present your case. As City Manager, I, along with the Finance Committee, will recommend a waiver of $12,000 in fees. Mr. James C. Tubb November 2, 1990 Page 2 We are extremely pleased that Thacker Container has selected Coppell as the site for their new facility, and we look forward to having them as a corporate citizen. We intend to do everything we can to make their relocation to our City enjoyable and will promote their growth and prosperity. If you have additional questions, please give me a call. Sincerely, Alan D. Ratliff City Manager ADR/slt cc: Mr. Robert Thacker Mr. A1 Blaine Mr. Kevan Dilbeck Tubbwaiv. ltr 1990 CITY MANAGER J~,~Es C. TuB]~ ATTORNEY AND COUNSELOR AT LAW 5200 F~ENA~5$ANCE TOWER i2Oa ELM STREET DALLA_$, TEXA. S 75270 TELEPHONE {Zt4) 74~-1701 October 30, 1990 Mr. Alan D. Ratliff City Manager city of Coppell P. O. Box 478 Coppell, TX 75019 RE: Application for Tax Abatement from Robert J. Thacker and Thomas R. Thacker Dear Mr. Ratliff: Since it is certain we will not be able to secure a tax abatement following the purchase of 5.01 acres from the Prentiss Group, we wish to renew our request that the $1,250 application fee forwarded with our letter of August 13, 1990, be returned. As indi- cated in my letter to you October 9, had we known in advance the application had little or no possibility of being approved, we would never have made the application; and following your advice to me that tax abatement was very unlikely, we withdrew our application. Also, please refer to my letter of October 4, 1990, regarding the agreement of the City to waive $11,069 or more in fees as out- lined in your letter to me of September 24. This agreement to waive fees was a material inducement to the 2hackers to proceed to purchase the property. Please let me have your confirmation of the waiver of fees as outlined in your letter of September 24th. I enclose another copy of my letter of October 4, 1990, regarding these matters and request that you let me have an appropriately executed copy of that letter on behalf of the City of Coppell and enclose a self- addressed, stamped envelope for the return of an executed copy of the letter. Please call if you have any questions. tm cc: Mr. Robert Thacker Mr. Kevan Dilbeck Mr. A1 Blaine Very truly yours, ATTORNEY AND COUNSELOR AT LAW 5200 RENAISSANCE TOWER DALLA. 5,, TEX~.S 7,%270 TELEPHONE (2~) 7a247OI TELECOOtE~ (~14) 745'8935 October 4, 1990 Mr. Alan D. Ratliff City Manager City of Coppell P. O. Box 478 Coppell, TX 75019 RE: Application for Tax Abatement from Robert J. Thacker and Thomas R. Thacker Dear Mr. Ratliff: Following receipt of your letter of September 24, 1990, Messrs. Thacker elected to move forward with their plan to purchase 5.01 acres, more or less, in Park West Commerce Center, City of Coppell. In view of our discussions regarding the Application for Tax Abatement and your advice, which was confirmed by subsequent telephone conversations between myself and Mr. A1 Blaine, it became clear that the Application for Tax Abatement would not be favorably considered, and if favorably considered the benefits derived there- from would be minimal. The contents of your letter dated September 24, 1990, and the agreement of the City to waive $11,069.00 or more in fees was a material consideration to my clients. We are moving forward to close the purchase of the property on or about October 15. Prior to closing we need your confirmation in hand as to the waiver of the fees described in your letter of September 24th. We also hereby withdraw the Application for Tax Abatement transmitted to Gary Seib in my letter of August 13, 1990. Please return the application fee of $1,250.00. Had we known in advance the application had little or no possibility of being approved, we would never have made the application; therefore we feel the return of the application fee is required. Please let me hear from you if you have any questions. Be assured that Thacker Container Corporation is looking forward to becoming a good citizen of the City of Coppell and fully expects to expand its facilities in the future and materially contribute to the tax b~e uf you~ City. Mr. Alan D. Ratliff October 4, 1990 Page 2 A copy of your letter of September 24th is enclosed, and we request that you return a copy of this letter verifying that the fees described therein will be waived together with a refund of the tax abatement application fee. Very truly yours, Tub~ The City of Coppell agrees to waive all of the fees described in the attached letter dated September 24, 1990. The amount of such fee is not limited by the values assigned in said letter and the amount waived shall be the actual amount of each fee. CITY OF COPPELL BY Alan D. Ratliff, City Manager tm cc: Mr. Robert Thacker Mr. Kevan Dilbeck Mr. A1 Blaine The City With A Beautiful Fut September 24, 1990 P.O. Box 478 Coppell, Texas 75019 214-462-0022 Mr. James C.Tubb 5200 Renaissance Tower 1201 Elm Street Dallas, Texas 75270 Dear Mr. Tubb: After discussions with Mr. A1 Blaine and Councilman Bill $mothermon, it was decided that we should provide you with a detailed listing of all fees associated with the proposed Thacker Container Company Project. As you and I discussed, it doesn't appear that we can get the votes to approve tax abatement for this project. We have a better chance of getting certain fees waived. Below are the estimates anticipate would be applicable to the project: Planning & Zoning Plat Water & Sewer Impact Fee (1 i/2" Water, 8" Fire Line Service) Initial Construction Permit Deposit Cost of Water Meter (1 1/2" service) Water Inspection Fees Public Works Inspection Fee for the fees which we 105.00 7,060.00 104.00 3,300.00 - 200.00 300.00 $11,069.00 Certain fees are direct reimbursement of our costs and I do not believe we should or can waive these fees, but the others, listed above, are certainly subject to Council consideration and waiver. Please let us know if further information or clarification can be made. We would appreciate the opportunity to work thru this matter and have Thacker Container in Coppetl. Yours truly, City Manager ADR/GLS/lsg xc: A1 Blaine, Prentiss Properties Bill Smothermon, Councilman ?UBB J^~Es C. TUBB attORneY AND COUNSELOR AT LAW 5200 !~ENAISSANCE tOWER 12Oi EIM Sti~EEt DALLAS. TEXAS 7,~270 TELEPHONE (214) 742-1701 TELECOPIER (;:'~4) 745-8935 August 13, 1990 Mr. Gary Sieb Director of Planning and Community Service city of Coppell P. O. Box 478 Coppell, Texas 75019 RE: Application for Tax Abatement by Robert J. Thacker and Thomas R. Thacker Dear Gary: I submit herewith two copies of the Application of Robert J. Thacker and Thomas R. Thacker for tax abatement in the city of Coppell. Following purchase of this property they propose to build a 75,000 square foot facility to include approximately 3,500 square feet of office space and the remainder in a ware- house configuration. This is a new client for me; however, we understand that they have been in business since 1946 and operate two plants and five warehouses in four states with 260 employees. They have also operated a distribution warehouse in Dallas in the City of Carrollton since 1977. They plan to relocate the Carrollton facility to the property described in the application. Please let me know if I can be of any assistance in your review of this application and expediting the handling. Enclosed is Check No. 1004 dated August 8, 1990, payable to the City of Coppell in the sum of $1,250.00 in payment of the application fee. tm Enclosures truly yours, PAY TO THE ORDER OF R. J. THACKER T. R. THACKER 10900 S. PAINTER AVE. SANTA FE SPRINGS, CA 90670 CITY OF COPPELL One thousand two hundred fifty and no/lO0 August 8 1990 1004 16-351-1220-262 '1,250.00' DOLLARS ~KE AVENUE Sanwa Bank ..A.O. 171 SOUTH LAKE AVENUE Collfornlo PASADENA. CA ~1101 FOR A~li~ti~ f~ T~ A~te~nt APPLICATION FOR TAX ABATEMENT TO CITY OF COPPELL, TEXAS APPLICANT: Robert J. Thacker and Thomas R. Thacker P. O. Box 3007 Santa Fe Springs, California 90670 (213) 944-6121 APPLICANT'S REPRESENTATIVE: James C. Tubb, Attorney at Law 5200 Renaissance Tower 1201 Elm Street Dallas, Texas 75270 (214) 742-1701 FAX - (214) 745-8935 The property (reinvestment zone) is located within: City of Coppell Coppell ISD Dallas County Denton County X X X The following is a description of the property to be included in the reinvestment zone which is also shown on the attached plat: A tract containing 218,237 square feet more or less (5.01 acres) ("Property") being in Block 8 of the Park West Commerce Center ("Park West"), City of Coppell ("City"), Dallas County, Texas, and to be situated on the Southwest corner of the proposed intersection of Airline Drive and Enterprise Drive in Park West. The Property will have approximately 531 front feet on Airline Drive and approxi- mately 411.37 front feet on Enterprise Drive and is more particularly described by metes and bounds on Exhibit "A" attached. 1. AVAILABILITY OF TAX ABATEMENT. New facilities and structures will be constructed upon the Property by the Applicants and additional future expansion is contemplated. 2. MINIMUM STANDARDS FOR TAX ABATEMENT. The Applicant submits that the Property and all improvements to be placed thereupon (collectively "the Project") will contribute to the (1) retention or expansion of primary employment, (2) attract major investment into the zone, and (3) contribute to the economic development of the City and will meet the following criteria: A. The Project involves a minimum increase in property value of 300%. The Property is currently assessed as agricultural land on the tax rolls of the City. Based upon the cost of the land and the reasonable estimate of all proposed improvements in the first phase of development, the new value of the Property and the Project should exceed $1,700,000. B. The Project will have high visibility, image impact, and will be of a significantly higher level of development than currently exists. C. The Project can and is expected to serve as a prototype and catalyst for other development of a higher standard. D. The Project will stimulate concentrations of employment and/or commercial activity. E. The Project will generate substantially greater employment than the use to which the Property is currently dedicated and substantially in excess of residential or other similar usage. NARRATIVE STATEMENT. The estimated gross cost of the Property prior to development is $557,000 and the estimated minimum cost of improvements is $1,300,000 excluding taxable personal property for an estimated total cost of $1,857,000. The Property is currently assessed as agricultural land having a value substantially less than the estimated gross cost of the Property to the Applicants. The cost of improvements may vary after the preparation of final working drawings and the completion of the bidding process. It is not believed that the cost of the improvements would be less than $1,300,000; however, those costs include all labor and material and landscaping for the completion of the Project, some of which may not be directly attributable to an increase in the tax base, but nevertheless will substantially exceed the 300% minimum limit increase. The Project is planned to be an industrial office/warehouse distribution center, which will be constructed by the Applicants and occupied by the Thacker Container Co. ("Thacker"), a company wholly owned by the Applicants. The current size of the first phase of the Project is to be approximately 75,000 square feet, including approximately 3,000 square feet of air conditioned office space. Thacker currently occupies an office warehouse property as a tenant in the City of Carrollton, Texas, where it employs 16 persons working one shift a day. Those 16 employees include 6 who are equipment operators and 10 in sales, sales service and management. The Carrollton facility has been in operation 14 years. Thacker plans an aggressive expansion program into markets in the midwest and southeast in the immediate future. It is contemplated that second and third shifts will be employed in the future, and the improvements themselves will be expanded to a maximum footprint of 105,000 square feet, depending upon the success of the expansion plans. The potential growth and expansion to more than 30 employees and an overall investment in excess of approximately $2,500,000 would be a major and significant investment by Thacker and a substantial increase in the tax base over the Property as it now exists. The Project is not a speculative venture but is a project that will be owner-occupied. Further, it is the first owner- occupied building to be constructed in the Center; therefore, the -3- significance of this Project is substantial regarding other owner-occupied development. Thacker is headquarteres in Sante Fe Springs, California, and currently operates two plants and five warehouses in four states with 260 employees. They have been in business since 1946 and in the Dallas area since 1977. The construction and occupancy of an attractive structure of quality construction pursuant to the high standards required by the Restrictive Covenants and Building Standards of Park West will enhance Park West and, in all reasonable probability, generate additional interest in the construction of owner- occupied buildings. Thacker does not engage in manufacturing and its operation and the products it distributes are pollution free and without environmental hazard. Virtually all of the company's products are recyclable and are completely compatible with all desirable environmental standards. The structure itself, more particularly described hereafter, will be visible from nearby thoroughfares and freeways and will add momentum to the marketing effort of Prentiss/Copley Investment Group for Park West and generally encourage other users to move into Park West with reasonable certainty that growth and prosperity are returning to the real estate markets of Dallas County. 3. DESCRIPTION OF IMPROVEMENTS. The structures to be constructed within the reinvestment zone are: 1. A 75,000 square foot office/warehouse building designed by Mark Pross of the Pross Design Group, Inc., 2607 Walnut Hill Lane, Suite 100, Dallas, Texas 75225 (350-5602). 2. The building shall be a one-story structure with steel frame and roof struts and will be 100% sprinklered. The overall construction should qualify for the most desirable fire insurance rates for structures of this type. 3. The design calls for concrete wall panels of exposed aggregate and painted surfaces with reveals separating the aggregate from the painted surfaces, thereby creating an attractive and pleasing design and image to the naked eye. The roof will be a three-ply built-up roof, and the building will have a truck dock four feet high and other amenities customarily found with office/warehouse properties in the light industrial category. -4- 4. VALUE OF IMPROVEMENTS. The estimated cost of construction cannot be precisely determined at this time since the entire Project is still in the preliminary design stages. However, it is anticipated that the cost of construction of the first phase will range from $18 to $25 per square foot, depending upon the final design and the cost of construction will range from $1,300,000 to $1,800,000. 5. TAXABLE PERSONAL PROPERTY. Applicants also request tax abatement for all taxable personal property used at the Project. The precise description of personal property and its value has not yet been determined. 6. DATE PROJECT COULD START: Fourth quarter 1990. 7. DATE PROJECTED FOR OCCUPATION OF THE PROJECT/INITIATION OF OPERATIONS: First quarter 1991. 8. EXPECTED BENEFITS TO THE CITY. Applicants believe the City will benefit at least in the following ways: A. The taxable value of the completed Project will exceed the Minimum Standards for Tax Abatement described in the ordinances. B. The Project will stimulate additional construction in the Center and increase the probability of owner-occupied improvements which adds stability to the City and long-term commitment to becoming a contributing member of the community. C. The improvements will, in all likelihood, be of a higher quality and building standard than structures constructed for speculative purposes. D. The Project will indirectly serve to amortize and recoup the cost of abating and servicing roadways by increasing the taxable value of the land served by those abutting and servicing roadways. Application submitted this day of August, 1990. Robert J. Thacker and Thomas R. Thacker by James C. Tubb, their attorney -5- FIELD NOTES BEING A TRACT OF LAND IN THE JAMES A. SIMMONS SURVEY ABSTRACT NO. 1296, AND ALSO BEING PART OF BLOCK 9, ACCORDING TO THE FINAL PLAT OF GATE'WAY PARK AT COPPELL RECORDED IN VOLUME 88100, PAGE 8893, MAP RECORDS OF DALLAS COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS, COMMENCING AT A 1/2 INCH SET IRON ROD LOCATED AT THE INTERSECTION OF THE WEST RIGHT-OF-WAY LINE OF BELT LINE ROAD (180 FEET ~/IDE) WITH THE SOUTH RIGHT-OF- WAY LINE DF AIRLINE DRIVE (60 FEET WIDE)j THENCE NORTH 89' 06' 46' WEST ALONG THE SOUTH RIGHT-OF-WAY LINE OF SAID AIRLINE DRIVE, A DISTANCE OF 3368.52 FEET TO AN IRON ROD FOR CORNER SAID POINT BEING THE POINT OF BEGINNINGj THENCE SOUTH 89'06'46' EAST ALONG THE SOUTH R.O,~. OF AIRLINE DRIVE, 391.37 FEET TO A IRON ROD FOR CORNERj THENCE SOUTH 44'06'46' EAST 88.88 FEET TO AN IRON ROD FOR CORNERj THENCE SOUTH 0'53'14' WEST 531.00 FEET TO AN IRON ROD FOR CORNERI THENCE NORTH 89' 06' 46' WEST, 411.37 FEET TO AN IRON ROD FOR CORNERj THENCE NORTH 0'53'14' EAST 53i,00 FEET TO THE POINT OF BEGINNING AND CONTAINING 218,837~47 SQUARE FEET, OR 5.01 ACRES OF LAND MORE OR LESS. EXHIBIT A BLOCK 9.60 Acres /' /' /' / / ! /' ..f BLOCK (20.26 Acres) BLOCK 2 101.92 Acre'J RLOCK 1 2~.14 Acres 5,Or Acre Site BLOC]< 7 BLOCK 6 24.72 Acres BLOCK 5 2.1.15 Acres ! P ,A, RK WFST COM M F-R CI-- CFN TER Recycling Committee. He gave an update of the recycling pilot program which began in two neighborhoods on November 10, 1990. He reported that there was approximately 85% participation in both the Hunterwood and Meadows Sub-divisions. When asked by Council what the plans for the future as regards to the entire City, Mr. Brooks stated that the Committee anticipates a City-wide implementation of curbside recycling in early 1991. No further action was required on this item. At this time, Mayor Wolfe thanked the Student City Council for their participation in tonight's agenda. He presented them with Certificates of Appreciation. Following a brief recess, the Council adjourned into Open Session to consider the remainder of the Agenda. Item 16 A. Consideration and approval of tax abatement application and/or waiving of fees (up to $12,000) for Thacker Container Program. BJ Consideration and approval of waiver of fees (up to $12,000) for Thacker Container Company. Mayor Pro Tem Smothermon reported that the Tax Abatement Committee recommends that the application fee not be waived, but that a waiver of fees of up to $12,000 for Thacker Container Company be granted. The company is looking to locate in the Park West Commerce Center. Council expressed concern that there are no guidelines or consistency in granting waiver of fees. It was pointed out that existing business who are planning to expand should be given the same consideration as new businesses so far as waiver of fees is concerned. To date, each request for waiver of fees has been considered on a case-by-case basis. Council requested that Staff and/or Finance Committee develop a cohesive policy for consistent consideration of waiver of fees by new and existing businesses. Council Member Nelson moved that the Tax Abatement application from Thacker Container Company be denied and that the waiver of fees (up to $12,000) be approved. Mayor Pro Tem Smothermon seconded the motion. The motion carried 4-3, with Mayor Pro Tem Smothermon and Council Member Thomas, Morton and Nelson voting in favor of the motion and Council Members Weaver, Cowman and Robertson voting against the motion. Item 17 Consideration of a variance from Table II Appendix A of the City of Coppell Subdivision Ordinance which concerns requirements for maximum widths of driveways. This variance is being requested by Mark Webb of Lambert Landscape Co. for Max Andrews who resides at 235 Winding Hollow, Villages at Cottonwood Creek Subdivision. Building official Dale Jackson made the presentation. Mr. Mark Webb of Lambert Landscape Company was also present with plats of the proposed work. Following discussion of this item, Council Member Weaver moved that the consideration of a variance from Table II Appendix A of the City of Coppell Subdivision Ordinance which concerns the requirements for maximum widths ofdriveways be denied. Council Member Thomas seconded the motion. The motion to deny the variance carried 7-0 with Mayor Pro Tem Smothermon and Councilmen Weaver, Thomas, Morton, Cowman, Robertson and Nelson voting in favor of the motion.