Title
Consider/Discuss/Act on Authorizing the City Manager to Enter into a Development Agreement for a Downtown Parking Garage
Summary
COUNCIL GOALS: Direction for Strategic and Economic Growth
Enhance the Quality of Life in McKinney
MEETING DATE: November 15, 2016
DEPARTMENT: City Manager’s Office
CONTACT: Barry Shelton, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the resolution.
ITEM SUMMARY:
• Staff has negotiated a development agreement between the City of McKinney, Virginia@5, LLC and SP2 301 E Virginia, LLC for the construction of a parking garage providing approximately 300 parking spaces on the property located on the northeast corner of Virginia Street and Chestnut Street.
• The agreement provides for the design, construction and lease of the parking garage. The City would lease the privately constructed garage from the property owner with an option to purchase.
BACKGROUND INFORMATION:
• Upon entering into the development agreement, the property owner will hire a design firm to develop a schematic design for the parking structure. The schematic design will provide number of spaces, estimated costs and options for design that will allow the City Council to make an informed decision on whether or not to proceed with design and construction of the garage.
• If either the City or the property owner decides to discontinue the design and construction process, the costs incurred to date would be split evenly by the two parties.
• Additional public meetings will be held to discuss the parking structure once the schematic design has been completed.
FINANCIAL SUMMARY:
• The lease payments and purchase option will be based on the cost of construction, which will be determined during the initial schematic design phase. The City Council will decide whether or not to proceed with the project once these costs are known.