Title
Consider/Discuss/Act on a Resolution Revising the Lease Agreement for the Downtown Parking Garage, Generally Located on the Northeast Corner of Chestnut Street and Virginia Street
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth (1B: Continue to develop a retail strategy for key areas of the community to further diversify revenue sources and expand entertainment, dining and shopping options and tourism)
MEETING DATE: November 19, 2018
DEPARTMENT: City Manager's Office
CONTACT: Barry Shelton, AICP, Assistant City Manager
RECOMMENDED CITY COUNCIL ACTION:
* Staff recommends approval of the resolution revising the lease agreement.
ITEM SUMMARY:
* This item is a request to amend certain provisions of the parking garage lease agreement between the City of McKinney and SP2 301 E Virginia, LLC.
* The proposed amendment will require the owner to obtain a Temporary Certificate of Occupancy (TCO) and deliver possession of the property to the City by January 1, 2019.
* The permanent certificate of occupancy will be required by February 1, 2019.
o The previously approved lease agreement has a completion date of December 1, 2018.
BACKGROUND INFORMATION:
* On November 15, 2016 the City Council approved a development agreement with the owners of the property on the northeast corner of Chestnut Street and Virginia Street for the design, construction and lease of a parking garage.
* On April 4, 2017, the City Council approved a Resolution authorizing the City Manager to execute a lease agreement with the property owners, Virginia@5, LLC and SP2 301 E Virginia, LLC.
* On January 16, 2018 the City Council approved a resolution revising the lease agreement for the downtown parking garage to extend the completion date until December 1, 2018.
* The project completion has been delayed by the relocation of Oncor power poles adjacent to the site and the unusual amount of rain over the past couple of months.
* The Oncor pole relocation was...
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