Title
Consider/Discuss/Act on a Resolution Authorizing a Deputy City Manager to Negotiate an Agreement with Jason Adams, CEO of Curious Complex for the Redevelopment of City-Owned Real Property (Primary Downtown Site of approximately 9.2-acres) in the Downtown Area for a period of 120-days.
Summary
MEETING DATE: March 4, 2014
DEPARTMENT: Development Services
CONTACT: Rick Leisner, AICP
Assistant Director of Development Services
Barry Shelton, AICP
Executive Director of Development Services
RECOMMENDED CITY COUNCIL ACTION:
· Approve the Resolution.
ITEM SUMMARY:
· Jason Adams, CEO of Curious Complex, an anchor tenant of the existing Collide Center business incubator, has requested an exclusive 120 day period, during which he plans on investigating the feasibility of, and searching for investment partners in, the development 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 plan 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 and commercial uses (in single use and/or mixed use urban downtown buildings) within a compact and pedestrian-walkable design.
· Mr. Adams will provide the City of McKinney a letter defining his intention and willing agreement to negotiate exclusively with the City for this 120-day period, or on till such time negotiations are terminated.
· This area in consideration includes only what has been considered the "primary site" for downtown redevelopment of City-owned property which is +/- 9.2 acres.
· If granted the exclusive negotiation period, Mr. Adams will use the 120 days to search for investment and development partners. By the end of the 120 days, he will be required to provide answers to the following questions:
1. Who are the equity team/partners and what level of participation and/or funding are they committing to the project?
2. Who are the development partners for the project and what will their role be in the project?
3. What form of city investment or participation is needed and in what form is this participation (funding, land, fee waivers, etc.)?
4. What form of land deal is being proposed? Will this be a fee simple land transaction, land lease, or some other proposal?
5. What is the proposed development program (land uses, square footage, number and type of residential units, retail, etc.)?
6. What are the general numbers of parking spaces being proposed and what is the split between public and private parking (garages and on-street)?
7. What are the proposed schedule and/or timing of development phases?
8. What type of special maintenance organization (BID, PID, etc.), if any, will be proposed to maintain public improvements including open space, streets and/or parking structures?
· City staff will work throughout the negotiation period to prepare the following informational items in order to better understand the real-estate market along with potential costs and benefits of the proposal:
1. A market analysis will be prepared to determine the demand for, and potential success of, the proposed land uses within the downtown McKinney submarket.
2. An economic impact analysis will be completed to better understand the value of the proposed project to the City of McKinney.
3. An updated land appraisal will be obtained to determine the value of the land in question.
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 finalists, the City was unable to agree upon terms with the potential development partners and negotiations were terminated.
FINANCIAL SUMMARY:
· Detailed financial analysis of specific City participation elements will be performed during the 120-day negotiation process. City Council's approval of the Resolution does not obligate the City to participate in a public/private partnership.
BOARD OR COMMISSION RECOMMENDATION:
· N/A