Title
Consider/Discuss/Act on a Resolution Approving Modifications to the Guarantor's Obligations Under the Chapter 380 Economic Development Program and Agreement with 380 Towne Crossing, L.P.; Authorizing the City Manager to Execute a First Amendment to the Agreement; and Providing an Effective Date
Summary
MEETING DATE: November 5, 2013
DEPARTMENT: City Manager
City Attorney
CONTACT: Jason Gray
Mark Houser
RECOMMENDED CITY COUNCIL ACTION:
· Approval of the First Amendment
ITEM SUMMARY:
· The City has an existing economic development agreement with 380 Towne Crossing, L.P., which has an effective date of November 15, 2006.
· This Agreement was subsequently assigned to the Collin County Community College District (the "District").
· Under the terms of the Agreement, J.P. Weber d/b/a Weber & Company ("Weber") served as the guarantor for a grant in the amount of five million dollars ($5,000,000.00) to be paid by the City to the District based upon sales tax revenues received from the Towne Crossing shopping center over a 5-year term.
· As of July 1, 2013, there was a shortfall of $937,292.00, requiring the City to pay the District a lump sum payment, which in turn triggered Weber's obligation to pay the City.
· The City Manager has negotiated with Weber to withdraw any contractual default and extend the deadline for the measurement of sales tax payments from July 1, 2013 to February 1, 2015, as well as clarify that Weber is obligated to pay any shortfall below $5,000,000.00, if such exists on February 1, 2015.
· The adoption of the modifications and the execution of the Amendment would carry out the original intent of the parties.
BACKGROUND INFORMATION: N/A
SPECIAL CONSIDERATIONS: N/A
FINANCIAL SUMMARY: N/A
BOARD OR COMMISSION RECOMMENDATION: N/A