Title
Consider/Discuss/Act on an Amendment to the Chapter 380 Economic Development and Project Plan Implementation and Loan Agreement with Casey Advisory Group, Inc. (and The Cotton Mill Partners, Ltd., as Intervenor and Owner) for the Historic Cotton Mill Redevelopment Project
Summary
MEETING DATE: January 20, 2015
DEPARTMENT: Development Services-Planning
CONTACT: Matt Robinson, AICP, Planning Manager
Michael Quint, Director of Planning
RECOMMENDED ACTION:
· Staff recommends approval of the amendment extending the deadline for the completion of the private parking lot area to March 31, 2015 as outlined in the proposed amendment.
ITEM SUMMARY:
· The proposed amendment to the Chapter 380 Economic Development and Project Plan Implementation and Loan Agreement with Casey Advisory Group, Inc. ("CASEY") and The Cotton Mill Partners, Ltd. ("COTTON MILL") is to extend the deadline of the obligation to construct a 150 space (minimum) parking lot by 90-days (from January 1, 2015 to March 31, 2015).
· Under the agreement approved by the TIRZ #1 Board on March 17, 2014, CASEY and the COTTON MILL were to:
1. Complete the partially complete draft construction documents for the western parking lot that was prepared by City Staff;
2. Construct the concrete private parking lot to include a minimum of 150 new or refurbished parking lot spaces together with lighting, landscaping and irrigation features; and
3. Receive a "green tag" inspection of the parking lot by January 1, 2015.
· Due to delays during the design phase, commencement of construction of the parking lot was delayed and as such was unable to be completed by the stated January 1, 2015 deadline. More specifically, amendments to the Stormwater Drainage Ordinance, related to detention pond requirements impacted the overall design of the parking lot and resulted in a redesign and resubmittal of construction plans. Amendments to the Stormwater Drainage Ordinance were approved by City Council at their September 2, 2014 meeting.
· To date, rough grading of the parking lot has been completed, along with electrical conduit for lighting poles. In addition, infrastructure related to the detention pond is currently underway.
· Under the proposed amendment, the specific obligations of CASEY and COTTON MILL to construct parking lot improvements are amended as follows:
1. Using the Loan advance proceeds received by CASEY and contributed to COTTON MILL, and not later than March 31, 2015, COTTON MILL shall fund and complete the private parking lot area within the Project, as generally depicted on Exhibit B, attached. The minimum private parking lot area requirements shall include a minimum of 150 new or refurbished parking lot spaces; all concrete paving; 26-foot wide fire lanes where required by the City's Fire Code; lighting, landscaping and irrigation features that comply with the City's codes and ordinances; and drainage and detention features that comply with the City's Storm Water Management Ordinance.
· Except as specifically amended above, all terms and provisions of the original agreement will remain in full force and effect. The specific obligations of CASEY and COTTON MILL that remain unchanged are:
1. COTTON MILL is required to complete 27,000 square feet of shell building improvements for future office space (the "27,000 Square Feet") and receive the appropriate certificates of occupancy therefor by January 1, 2017. The 27,000 Square Feet could be located anywhere indicated on Exhibit A (specifically excluding suite numbers 100, 200, 400, 700, 710, 800, 930, 1000, and Outbuilding D which are already improved and have certificates of occupancy).
2. COTTON MILL is required to have at least 30 new jobs occupying some portion of the 27,000 Square Feet by January 1, 2017.
3. Upon the satisfaction of the obligations listed above, the $500,000 loan shall be forgiven and allocated over three tax years.
4. If CASEY and COTTON MILL do not fully satisfy the aforementioned obligations by January 1, 2017, CASEY and COTTON MILL shall be required to pay back the prorated portion of the $500,000 grant loan plus interest.
BACKGROUND:
· The approved Chapter 380 Economic Development Agreement with CASEY and COTTON MILL was intended to incentivize a substantial phase of private site and building (shell) improvements required to make the eastern portion of the main building complex ready for tenant finish-out by the growing demand of office space.
· As shared by the City (Town Center Study), the MEDC (McKinney Economic Development Alliance Study), and the private owner, the vision/plan is to preserve, rehabilitate, and adaptively reuse the Historic Cotton Mill as the anchor of an "entrepreneurial village"--serving as a business development center that fosters a unique, inspiring, and collaborative environment for emerging entrepreneurs, technologists, and other types of creative professionals.
· COTTON MILL has owned the Historic Cotton Mill since 1997 and has made significant improvements over the years to save the existing main building complex from further deterioration. The main building complex contains an approximate total area of 149,000 square feet (and the four outbuildings contain an additional 40,000 square feet).
· Currently, approximately 23% (34,000 square feet) of the main building complex has been rehabilitated for occupancy (office space, studio space, and an event hall). One hundred percent of the 34,000 square feet of rehabilitated space is occupied. Approximately 77% (115,000 square feet) of the main building complex remains functionally obsolete in an unrehabilitated condition and is not suitable for occupation.