File #: 22-0405    Name: Hemphill Lease/Settlement Agreement
Type: Resolution Status: Regular Agenda Item
In control: City Council Regular Meeting
On agenda: 5/3/2022 Final action:
Title: Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Settlement Agreement and Mutual Release incident to Hemphill, LLC v. City of McKinney, Texas Civil Action No. 4:21-cv-00655, United States District Court, Eastern District of Texas (Sherman Division) and a related Land Option and Lease Agreement by and between Said Parties
Attachments: 1. Resolution, 2. Settlement Agreement, 3. Land Option and Lease Agreement
Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Settlement Agreement and Mutual Release incident to Hemphill, LLC v. City of McKinney, Texas Civil Action No. 4:21-cv-00655, United States District Court, Eastern District of Texas (Sherman Division) and a related Land Option and Lease Agreement by and between Said Parties

Summary

COUNCIL GOAL: Direction for Strategic and Economic Growth
(1C: Provide a strong city economy by facilitating a balance between industrial, commercial, residential and open space)

MEETING DATE: May 3, 2022

DEPARTMENT: Legal

CONTACT: Mark S. Houser, City Attorney

RECOMMENDED CITY COUNCIL ACTION: Approval of the Resolution

ITEM SUMMARY: The referenced litigation arose out of a land use denial in July 2021 relating to a cell tower application by Hemphill, LLC. The litigation parties recognized the benefits of pursuing alternative cell tower sites, and immediately commenced discussions on settling the litigation. A new site was identified on a parcel which was contractually obligated for conveyance to the City by the developer of the Custer West development. A special warranty deed to the parcel is currently being held in escrow by the City.

Over the next several months, the City Attorney's office and City staff worked on siting a new cell tower on the parcel to be conveyed, generally east of Furr Elementary school on Hidden Haven Dr. in McKinney. A lease was negotiated which allows the tenant to construct an 85' monopole cell tower structure with required screening and access drives. The lease will allow for 9 extensions totally 50 years w/lease payments to the City, including rent escalation clauses. The approval of the Lease requires the sequential approval of the two (2) prior zoning/SUP items, as well. Since the parcel will ultimately be a City park, staff worked closely with the Park's Director to integrate the structures into the future park design. To that end, Mike Kowski has approved...

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