Title
Consider/Discuss/Act on Authorizing the City Manager to Execute an Agreement Transferring Obligation to Construct Certain Street Parking Spaces Between Developers and Amendment to a Master Development Agreement by and between the City of McKinney, Texas, Columbus Realty Partners, Ltd., and Playful Building One, LLC
Summary
COUNCIL GOAL: Direction for Strategic Growth
MEETING DATE: December 19, 2017
DEPARTMENT: City Manager
City Attorney
CONTACT: Paul G. Grimes, City Manager
Barry Shelton, Assistant City Manager
Mark S. Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Authorization to the City Manager.
ITEM SUMMARY:
• Downtown McKinney PT MFA, L.P. (“Downtown McKinney”) and Playful Building One, LLC (“Playful”) desire to enter into an Agreement that will transfer the obligation to construct 22 public street parking spaces along the eastern side of Chestnut Street and 8 public parking spaces along the southern side of Davis Street, which are the responsibility of Downtown McKinney, as the “Developer Sponsor SPE” of Columbus Realty Partners, Ltd., (“Columbus”) under the Master Development Agreement with the City of McKinney, from Downtown McKinney to Playful to reduce the potential duplication of the cost of the construction of those 30 street parking spaces. Downtown McKinney is also paying Playful the amount of Eighty Thousand Dollars ($80,000) as consideration of Playful’s assumption of the obligation to construct such street parking spaces.
• The Agreement also amends the Master Development Agreement by and between the City of McKinney, Texas, Columbus Realty Partners, Ltd., and Playful Building One, LLC by reducing the number of street parking spaces required with the “Residential/Retail Development Improvements,” defined below, from 119 street parking spaces to 89 street parking spaces and transfers the obligation to construct the remaining 30 street parking spaces under the Master Development Agreement to the “Office Building Development Improvements” component thereof, also defined below, being constructed by Playful. While the Agreement changes the timing on completion of the 30 street parking spaces and the responsibility for the construction of those street parking spaces, it does not change the City incentives described below.
BACKGROUND INFORMATION:
• In February 2016, the City approved an economic development agreement with Columbus covering a City-owned, 9-acre parcel in downtown McKinney. The Project involves the development of multi-family residential/retail building improvements with structured parking for its residents and the public. The City provided conditional, cash incentives and land conveyances to Columbus to complete the Project, subject to the developer performing under the economic development agreement. The conditions require the construction of 320 Class A, residential units, 20,000 square feet of retail, 200 public parking spaces in the parking garage, and 119 public street parking spaces (collectively the “Residential/Retail Development Improvements”). The conditions also require the construction of 45,000 square feet of Class A office space in an office building having at least three stories, including 125 public parking spaces for use during evenings and weekends (collectively the “Office Building Development Improvements”). The construction of the Residential/Retail Development Improvements and the Office Building Development Improvements have defined commencement and completion dates which are also conditions to receiving incentives. The Residential/Retail Development Improvements are under construction with an expected completion of fall 2018.
• The City previously approved an agreement between Columbus and Playful whereby Columbus assigned its obligations and benefits for the Office Building Development Improvements under its Chapter 380 Agreement with the City to Playful to allow Playful to construct its Corporate World Headquarters in McKinney. The Office Building Development Improvements component has a required commencement date of February 1, 2018 with a completion date of January 15, 2020.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A