Title
Consider/Discuss/Act on the First 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: October 15, 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 First 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. This item will consider a First Amendment to that Agreement. Notes Live, Inc. has recently changed its corporate name to VENU Holding Corporation (“VENU”).
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.
• VENU has requested a First Amendment to the Agreement (the “Amendment”) to modify certain business terms in the Agreement.
• The primary modifications in the proposed Amendment relate to 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.
FINANCIAL SUMMARY:
• The amended terms of the Agreement are contained in the Amendment.
BOARD OR COMMISSION RECOMMENDATION:
• The MEDC will consider the Amendment on October 15, 2024, at its Regular Board Meeting, and the MCDC has previously approved the terms of the Amendment at its September 26, 2024, Regular Board Meeting conditioned upon the City Council’s approval on October 15, 2024.