Title
Consider/Discuss/Act on a Term Sheet for the Development of Jefferson Verdant as a Partnership between JPI Companies and the McKinney Public Facilities Corporation
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements.
MEETING DATE: September 27, 2022
DEPARTMENT: City Manager’s Office & Housing and Community Development
CONTACT: Kim Flom, Assistant City Manager
Cristel Todd, Affordable Housing Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Approve the Memorandum of Understanding (MOU)
ITEM SUMMARY:
• City Council approved a resolution authorizing the City Manager to negotiate terms with JPI Hardin Development, LLC for a Public Facilities Corporation partnership on August 2, 2022.
• The attached Term Sheet includes proposed partnership terms for the development of Jefferson Verdant, an approximately 383-unit multifamily residential project, located on approximately 15 acres of property.
BACKGROUND INFORMATION:
• City Council approved a Request for Qualifications (RFQ) for a future public private partnership development for workforce/affordable housing on May 17, 2022
• The RFQ sought an experienced real estate developer for a Public Facility Corporation (PFC) partnership.
• An evaluation team recommended JPI based on their response and development experience. City Council approved a resolution authorizing the City Manager to negotiate terms with JPI Hardin Development, LLC for a potential Public Facilities Corporation partnership on August 2, 2022.
• City Staff and the City’s Consultant team have been working with JPI to establish partnership parameters that are reflected in the attached Term Sheet.
• If the Term Sheet is approved, the parties will complete a more definitive agreement that will be brought back to the Public Facilities Corporation Board for review.
FINANCIAL SUMMARY:
• The City of McKinney will recognize financial gain from the transaction per the terms established in the Term Sheet and subsequent agreement.
• The PFC Board will establish the use of the financial gain at a future date.
BOARD OR COMMISSION RECOMMENDATION:
• N/A