Title
Consider/Discuss the Historic Flour Mill Redevelopment Project Chapter 380 Economic Development Agreement
Summary
MEETING DATE: February 2, 2016
DEPARTMENT: Development Services - Planning
CONTACT: Matt Robinson, AICP, Planning Manager
Brian Lockley, AICP, Director of Planning
Michael Quint, Executive Director
RECOMMENDED ACTION:
• Consider and discuss whether or not the Board should enter into a new Chapter 380 Development Agreement for the Historic Flour Mill Redevelopment Project.
ITEM SUMMARY:
• Staff is seeking direction from the TIRZ #1 Board regarding entering into a new Chapter 380 Development Agreement for the Historic Flour Mill Redevelopment Project. The Chapter 380 Development Agreement that was previously approved by the board on April 19, 2011 lapsed in December of 2013.
• Subsequent to the execution of the Chapter 380 Agreement, the City entered into a grant funding agreement for $1,760,000 by and between the City of McKinney, The North Central Texas Council of Governments (NCTCOG), and the State of Texas for the construction of related public infrastructure in support of the Historic Flour Mill Redevelopment Project as designated by the Sustainable Development Infrastructure Grant Program of the NCTCOG.
• The Historic Flour Mill Redevelopment Project has not completed all phases/requirements that were outlined in the Chapter 380 Development Agreement. In addition, the requirements to satisfy the NCTCOG Sustainable Development Grant have not been completed, which had a deadline of December 31, 2015.
• The agreement with Bradley S. Kidwell Family LP and the City of McKinney was intended for the primary purpose of constructing, renovating and operating a mixed use historic project at the Flour Mill.
• As part of the terms of the Chapter 380 Agreement that was approved by the TIRZ #1 Board, the following items were to take place:
o Bradley S. Kidwell Family LP shall fund and complete construction of all private development phases of the project and satisfy all conditions of the private development, which are described in greater detail within the agreement.
o Reinvestment Zone Number One shall fund a one-time grant in the amount of $200,000 payable to Bradley S. Kidwell Family, LP upon the satisfaction of the express terms and conditions outlined in the agreement.
o Bradley S. Kidwell Family LP shall convey to the City, at no cost to the City, the triangular-shaped parcel of land on the south side of the subject project, and any additional strips of land owned by Bradley S. Kidwell Family LP to allow the City to make any required public infrastructure improvements in support of the Sustainable Infrastructure Grant Program of the NCTCOG.
o The City of McKinney shall waive any applicable roadway, water and wastewater impact fees and park dedication fees so long as no default exists at the time that Bradley S. Kidwell Family LP is required to pay such fees.
BACKGROUND:
• Redevelopment of the historic Flour Mill as a mixed-use project is identified as a TIRZ-eligible key catalyst project in the approved Project Plan of TIRZ No. 1.
• Additionally, paving/utility/streetscape improvements to key local streets surrounding the Flour Mill (Louisiana Street and Virginia Street) are also identified as TIRZ-eligible expenditures in the approved Project Plan.
• In response to the North Central Texas Council of Governments 2009-2010 Sustainable Development Call for Projects, the City of McKinney submitted an infrastructure project grant application to complete various public and streetscape improvements on key streets in conjunction with the private redevelopment of the Flour Mill site (known as the Historic Flour Mill Catalyst TOD Project).
• On June 3, 2010, the Regional Transportation Council (RTC) approved $2.2 million to complete public infrastructure improvements for the McKinney Historic Flour Mill Catalyst TOD Project.
o $1,760,000 Regional Toll Revenue (RTR) funds;
o $440,000 local match
• In July 2010, following RTC approval of the project, McKinney City Council approved a Resolution (2010-07-104) formally supporting the Historic Flour Mill Catalyst TOD Sustainable Development Grant Project and authorizing the City Manager to enter into an Interlocal Cooperative Funding Agreement with the NCTCOG.
• The Chapter 380 Economic Development and Project Plan Implementation Agreement was intended to ensure that Mr. Kidwell followed through on his commitment to adaptively redevelop the Flour Mill complex into a mixed-use site that incorporates urban-style loft living with complementary ground floor commercial uses.