Title
Discuss the Investigation/Feasibility/Development Plan Establishment for the Proposed Collide Village (Innovation Village) a +/- 9.2 acre Tract of Land with Respect to a Potential Development Agreement
Summary
MEETING DATE: August 4, 2014
DEPARTMENT: Development Services and MEDC
CONTACT: Barry Shelton, AICP, Interim Deputy City Manager
Rick Leisner, AICP, Assistant Director of Development Services
John Valencia, Director of Business Retention and Emerging Technology, McKinney Economic Development Corporation
RECOMMENDED CITY COUNCIL ACTION:
· No action required.
ITEM SUMMARY:
· Jason Adams, CEO of Curious Complex, and anchor tenant of the existing Collide Center business incubator, has completed an exclusive 120-day period, which his team investigated the feasibility of, and related development activity for, the development potential of the +/- 9.2 acre tract of land located on the southwest corner of State Highway 5 and Davis Street.
· Mr. Adams has worked with City staff to develop a Preliminary Master Plan (attached) for the +/- 9.2 acre property in which the Collide Center would become a center piece and catalyst for the development program which includes new residential, commercial (in single use and/or mixed-use urban buildings) and open space/park land uses planned in a compact and pedestrian-walkable design.
· Mr. Adams provided the City of McKinney a letter defining his intention and agreement to negotiate exclusively with the City for this 120-day period, or until such time negotiations are terminated.
· The area in consideration includes only what has been considered the "primary site" for downtown redevelopment of City-owned property which is +/- 9.2 acres.
· Mr. Adams also used the 120-day timeframe to search for investment and real estate development partners for this downtown redevelopment opportunity.
· In relationship to Mr. Adams and team's development proposal the City has contracted with Catalyst Commercial (Catalyst) for market analysis, economic impact and return on investment (ROI) estimates related to the proposed development program and a finalized development agreement.
· The initial real estate market analysis findings by Catalyst are included under the attachment section for review.
· Mr. Adams and his Palladium team will present their development proposal and plan which will include their answers to the initial questions on August 4 to City Council which corresponds to the end of the 120-day period.
BACKGROUND INFORMATION:
· Since the adoption in 2008 of the Town Center Study Initiative Phase 1 Report and associated illustrative vision (together known as the "Town Center Master Plan"), the City of McKinney has been evaluating and implementing a comprehensive strategy of implementation tools (e.g. development policies, development ordinances, grants, public infrastructure investments, catalyst projects, etc.) in order to bring the vision to life and truly allow revitalization and economic redevelopment of the historic Town Center to be achieved and sustained over the long-term.
· In July 2012, as a proactive step to increase momentum for continued revitalization in the Town Center, the City issued a Request for Proposals (12-025RFP) seeking master development proposals from qualified private development firms for the redevelopment of City-owned downtown properties.
· After narrowing the proposals to two (2) finalists, the City was unable to agree upon terms with the potential development partners and negotiations were terminated.
FINANCIAL SUMMARY:
· Economic impact and return on investment (ROI) estimates by Catalyst will be completed as we work together with Mr. Adams and team on a draft and/or final development agreement. Economic impact data and return on investment (ROI) estimates will be brought back to City Council for discussion/consideration/action.
BOARD OR COMMISSION RECOMMENDATION: N/A