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AGENDA ITEM SUMMARY

Meeting: 4/3/2014 DOC ID: 6028Recommending Department: Development Services LSR No:15948

Resolution -- Approving an Economic Incentive Agreement Between the

City of Irving and Crow-Billingsley 635 Beltline, LTD. in an AmountDependent Upon Annual Qualification

Administrative Comments

1. This item supports Strategic Goal No. 3: Economic Development.

2. Impact: Approval of this incentive agreement will assist in relocating 7-Eleven Inc.sNorth American Headquarters to Irving.

3. The city, along with the Greater Irving/Las Colinas Chamber of Commerce haveworked with 7-Eleven and the developer of Cypress Waters to create an incentivepackage to relocate 7-Eleven Inc. to a new 300,000 square foot office campus with

a 500 car parking garage plus adequate surface parking at the northwest corner ofRanch Trail and IH635.

4. Crow-Billingsley 635 Beltline, LTD, (the developer) will construct a 300,000 squarefoot office building with a 500 space parking garage, make improvements toHackberry Road as well as install necessary sidewalks, irrigation and potentiallyfund a new traffic signal at Cypress Waters Boulevard and Hackberry Road.

5. At minimum qualification levels, the City receives an estimated $10.0M during theterm of the agreement. The incentive generates $2.4M in real property rebates plus$4.0M in infrastructure reimbursements to the developer during the same term. TheDeveloper will continue to receive reimbursements against the remaining balance of

$3.0M related to the 2004 infrastructure reimbursement agreement.

6. The incentive is made up of two elements:

a. The first element is a rebate of an average of 87% of the real property taxgenerated over the first 13 years of the 7-Eleven lease.

b. The second element is the reimbursement of the developerscosts of (1)constructing the infrastructure improvements to Hackberry Road,sidewalks and irrigation to serve the development and (2) a portion of theparking garage in excess of 300 parking spaces plus interest capped at10 years at the rate of 1.84%. The total reimbursement is capped at$3,960,112.00. This reimbursement will be paid by a rebate of a 20%portion of the sales tax generated as calculated under an existing 2004reimbursement agreement whereby the developer is being reimbursed aportion of the developers cost of constructing the IH635 frontage road.Once the 2004 agreement has fully refunded the developer those initialIH635 frontage road costs, then the sales tax reimbursement increases to60% until such time that the current costs are repaid.

7. 7-Eleven must meet the minimum qualifications annually in order for Crow-Billingsley 635 Beltline, LTD. to receive the incentives.

8. 7-Eleven must occupy the facility by December 31, 2016 to qualify for the incentives

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to begin.

9. This item is a companion item to the Incentive Agreement with 7-Eleven, Inc.,concerning the rebates of a portion of the sales tax generated by 7-Eleven Inc. attheir national headquarters and a portion of 7-Elevens business personal propertytax.

10. This incentive agreement was discussed at the March 18th joint meeting of thePlanning and Development Committee and the Audit and Finance Committee.

Recommendation

The resolution be approved.

ADDITIONAL COMMENTS:

Contract Required: Yes Review Completed By:Previous Action: N/A Council Action: N/A

.

ATTACHMENTS:

380 - Billingsley 4-3-2014 (PDF)

CURRENT YEAR FINANCIAL IMPACT:

N/A

REVISION INFORMATION:

Prepared: 3/6/2014 10:59 AM by Cynthia CastroLast Updated: 3/28/2014 10:55 AM by Cynthia Castro

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CITY OF IRVING

COUNCIL RESOLUTION NO. RES-2014-129

WHEREAS, pursuant to Chapter 380 of the Texas Local Government Code, the City Council

has adopted a program for granting public funds to promote local economic development, and stimulatebusiness and commercial activity in the City of Irving; and

WHEREAS, the City Council finds the economic development incentive offered in the attached

agreement will promote economic development and stimulate business and commercial activity in theCity of Irving;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OFIRVING, TEXAS:

SECTION I. THAT the City Council hereby approves the attached Economic Incentive Agreementbetween the City of Irving and CROW BILLINGSLEY 635 Beltline, LTD., a Texas

limited partnership, and the Mayor is authorized to execute said agreement.

SECTION II. THAT this resolution shall take effect from and after its final date of passage, and it isaccordingly so ordered.

PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF IRVING, TEXAS,

on April 3, 2014.

________________________________

BETH VAN DUYNEMAYOR

ATTEST:

_______________________________

Shanae Jennings

City Secretary

APPROVED AS TO FORM:

_______________________________

Charles R. Anderson

City Attorney

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