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: May 5, 2015
DEPARTMENT: Development Services-Planning
CONTACT: Matt Robinson, AICP, Planning Manager
Michael Quint, Director of Planning
RECOMMENDED ACTION:
· Staff is not opposed to the requested extension of the deadline for completion of the private parking lot area to October 31, 2015.
ITEM SUMMARY:
· The proposed Second 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 repeal the existing First Amendment and extend the deadline of the obligation to construct a 150 space (minimum) parking lot to October 31, 2015.
· Under the agreement approved by the TIRZ #1 Board on March 17, 2014 and subsequently amended by the TIRZ #1 Board on January 20, 2015 meeting, 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 March 31, 2015.
· Per the applicant, because of delays caused by weather and long waits for concrete scheduling from the concrete plant, completion of the parking improvements were unable to be completed by the stated March 31, 2015 deadline extension. Delays to the project were initially encountered during the planning phase, which necessitated an extension of the original January 1, 2015 deadline. More specifically, amendments to the Storm Water Drainage Ordinance, related to retention/detention pond requirements, impacted the overall design of the parking lot and resulted in a redesign and resubmittal of construction plans. Amendments to the Storm Water Drainage Ordinance were approved by City Council at their September 2, 2014 meeting.
· To date, with the exception of landscaping, the western parking lot has been completed and all paving, striping and lighting are in place. Construction on the east parking lot has yet to commence.
· 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 October 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 and Project Plan Implementation and Loan Agreement with Casey Advisory Group, Inc. ("CASEY") and The Cotton Mill Partners, Ltd. ("COTTON MILL") as Intervenor and Owner of the Historic Cotton Mill Redevelopment Project. This agreement 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.
FINANCIAL IMPACT:
· N/A