Consideration to approve a Public Infrastructure Easement Acquisition Agreement by and between the City of Plano, Texas and Plano Mall Owner LP, a Delaware limited partnership; and authorizing the City Manager to execute all necessary documents. Approved

In 2013, the citizens of Plano approved the sale of bonds to support aging retail centers.  The bond referendum text is (the underlined section are the particulars for expending the bond funds):

“SHALL the City Council of the City of Plano, Texas, be authorized to issue general obligation bonds of the City in the principal amount of $15,000,000 for permanent public improvements and public purposes, to wit: construction, improvement, renovation, demolition and rehabilitation of public infrastructure improvements within the City related to revitalization of existing commercial facilities, including streets, utilities, open space and related public infrastructure and appurtenances; such bonds to mature serially or otherwise over a period not to exceed FORTY (40) years from their date, to be issued and sold in one or more series at any price or prices and to bear interest at any rate or rates (fixed, floating, variable or otherwise) as shall be determined within the discretion of the City Council at the time of issuance or sale of the bonds; and whether ad valorem taxes shall be levied upon all taxable property in the City sufficient to pay the annual interest and provide a sinking fund to pay the bonds at maturity?”           

The attached agreement complies with the 2013 Bond referenda. 

The Assembly is a mixed-use project that reimagines the Plano Market Square Mall.  Located near the intersection of K Avenue and Spring Creek, the Assembly is in accord with both the Comprehensive Plan and Envision Oak Point.  In addition, the removal of the obsolete retail space will strengthen the remaining four corner retail sites.  Likewise, adding modern office space to the US 75 corridor will shift the paradigm in a very beneficial way for Plano.

The Triten Real Estate Partners’ mission and vision for Assembly Park is to deliver a thoughtfully designed, family-friendly work/live/play destination with a vibrant sense of community for decades to come.  Triten’s vision includes creating a sense of place and community through the creation of a central park, large kids play area, landscaped hike and bike trail that connects to the coveted Oak Point Park and Nature Preserve, all fully integrated with the curated food & beverage retail, office and residences they plan to build.  Their goal is to have every Plano resident and office occupant benefit from what they are creating in an effort to further “assemble” the entire community.

Triten believes the only way to accomplish this vision is to construct and complete all aspects of this project.  Triten has endeavored through the entitlement, design, permitting and now construction phase of their project, to incur material cost escalations due to inflation out of their control.  To overcome these new hurdles, the 2013 Bond funds are a vital source of additional capital, and therefore critically important, to Assembly Park’s construction and completion. Acquisition of the improvements will only be completed, and funds transferred, upon completion of the project as originally proposed by Triten.

Staff sees this project as a catalyst in revitalizing the northeastern portion of the US 75 corridor. Creating development that activates spaces longer than the 8-hour workday is key to Plano’s sustainability and economic vitality.  Therefore, Staff recommends the approval of the attached agreement utilizing $2.3 million utilizing 2013 Bond Funds.  

It should be noted that $2.3 million represents fair market value of the easement's acquisition based on the cost to construct the improvements. 

The current assets for Fund 039 are $2,678,751.20, which includes interest. These funds can only be spent on eligible improvements as outlined above.

Approval of this item supports the City’s Strategic Plan Critical Success Factors of Residential and Commercial Economic Vitality and Excellent, Innovative, and Accountable City Government.