Title
Consider/Discuss/Act on the Second Amendment to Chapter 380, Grant, and Development Agreement by and among City of McKinney, Texas, McKinney Economic Development Corporation, McKinney Community Development Corporation, and VENU Holding Corporation, Successor-by-Name-Change to Notes Live, Inc.
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5A: Create Affordable Recreational and Cultural Arts Activities For
All Ages Throughout the City)
MEETING DATE: December 3, 2024
DEPARTMENTS: City Manager’s Office
Legal Department
McKinney Economic Development Corporation (MEDC)
McKinney Community Development Corporation (MCDC)
CONTACTS: Paul Grimes, City Manager
Mark Houser, City Attorney
Michael Kowski, MEDC President & CEO
Cindy Schneible, MCDC President
RECOMMENDED CITY COUNCIL ACTION: Approval of the Second Amendment to Chapter 380, Grant, and Development Agreement.
ITEM SUMMARY:
• On April 16, 2024, the City of McKinney approved a Chapter 380, grant, and Development Agreement with Notes Live, Inc. (the “Agreement”), for the development of a 20,000-seat open-air amphitheater located on 46 acres at the northeast corner of U.S. 75 and S.H. 121. On October 15, 2024, the City of McKinney approved a First Amendment to the Agreement. This item will consider a Second Amendment to that Agreement (the “Second Amendment”).
BACKGROUND INFORMATION:
• On March 12, 2024, the City of McKinney and Notes Live, Inc., announced that preliminary terms were reached to deliver a 20,000-seat open-air amphitheater.
• On April 16, 2024, the City of McKinney approved a Chapter 380, Grant, and Development Agreement with VENU.
• The Project is located on 46 acres at the northeast corner of U.S. 75 and S.H. 121.
• The Project - called Sunset at McKinney amphitheater - represents an investment of $220 million by VENU.
• The Project is estimated to bring over 1,300 direct and indirect jobs to the community and an economic impact of roughly $3 billion to the area over the first ten (10) years.
• The Project is a joint effort by the city, the MEDC and the MCDC.
• The Sunset at McKinney amphitheater will serve as the flagship music venue for Notes Live and represents the largest venue among its locations.
• The amphitheater will include luxury fire pit suites, a reserved seating area, and a landscaped grass berm, all under an iconic roof structure.
• VENU anticipates the project will open for the 2026 touring season.
• A First Amendment to the Agreement (the “First Amendment”) was approved on October 15, 2024 to modify the i) purchase terms for the land and the correlative incentives for the timely completion of the Project, ii) the eligible Operators of the Project and the obligations of said Operator(s), iii) changes to certain aspects of the design of the Project, iv) the use of eminent domain for public infrastructure benefitting the Project, and v) conditions of any assignment of the Agreement.
• The primary modifications in the proposed Second Amendment relate to the i) eligible Operators of the Project which shall include a wholly-owned subsidiary of VENU and the obligations of such Operator, ii) the City Parties’ default remedies incident to actions by a wholly-owned subsidiary of VENU acting as Operator, and iii) the date by which VENU must contract with an Operator.
FINANCIAL SUMMARY:
• The amended terms of the Agreement are contained in the Second Amendment.
BOARD OR COMMISSION RECOMMENDATION:
• The MEDC and MCDC will consider the Amendment concurrently with the City Council at this Special Joint Meeting to be held on December 3, 2024.