Title
Consider/Discuss/Act on a Resolution Approving a Chapter 380 Economic Development and Incentive Agreement by and between the City of McKinney and BBV Texas Development, L.L.C. and Authorizing the City Manager to Execute the Agreement
Summary
MEETING DATE: November 6, 2012
DEPARTMENT: City Manager
CONTACT: Jason Gray, City Manager
Rob Daake, Deputy City Manager
RECOMMENDED CITY COUNCIL ACTION:
· Approval
ITEM SUMMARY:
· The City Manager's office has completed negotiations with BBV on the terms of the incentive agreement for BBV to construct a healthcare facility near Baylor Hospital. The terms are embodied in a Chapter 380 Economic Development Agreement having the following primary terms:
· BBV shall complete construction of the Project consisting of approximately 70,000sf of healthcare and office space and receive a Certificate of Occupancy on or before December 31, 2014
· The Project shall have a valuation of not less than $8M including real property, business personal property and real property improvements on January 1, 2015.
· Not less than 90 full time equivalent employees will be employed in association with the project with a minimum of 40% of the employees earning $20/hr.
· City agrees to provide a lump sum $100,000 incentive payable upon receipt of a Certificate of Occupancy. A proportionally-reduced disbursement may be earned if BBV fails to either meet the $8M valuation requirement or the staffing/compensation metric completely.
· BBV's failure to comply with the terms described above within the prescribed timelines will trigger financial clawbacks detailed in the agreement.
BACKGROUND INFORMATION:
· The Project has received previous approval on the following items:
o Rezoning request-8/6/12
o Access Management Plan-8/14/12
o Site Plan-8/14/12
o Preliminary-Final Plat-9/25/12
FINANCIAL SUMMARY:
· Included in Item Summary
BOARD OR COMMISSION RECOMMENDATION:
· N/A