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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 8/26/2024 | | DEPARTMENT: | Special Projects | | DIRECTOR: | Peter Braster, Director of Special Projects | | AGENDA ITEM: | Approval of a Development Agreement for TRQ (fka EDS) | | RECOMMENDED ACTION: | Approval of Contract / Agreement |
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| | | | | | | | ITEM SUMMARY To approve an Economic Development Agreement between the City of Plano and NexPoint Development Company, LP, a Delaware limited partnership for the Texas Research Quarter Project; and authorizing the City Manager to execute all necessary documents. Approved |
| | | | | | | | PREVIOUS ACTION/PRESENTATION On July 10, 2024, the TIRZ#5 Board of Directors unanimously voted to recommend an the use of $15 million in TIRZ#5 funds to support the project. |
| | | | | | | | BACKGROUND The Texas Research Quarter is the site of the former EDS Headquarters in Legacy Business Area. The existing office buildings on the 99-acre site have been vacant since 2018. NexPoint intends to redevelop the property into a life-science campus. Redevelopment will be in several phases. Those phases are planned to include a research hospital, or other marquee feature, which will distinguish the Texas Research Quarter as a significant destination for life sciences organizations. In addition, additional lab, scientific research, pharmaceutical, medicinal, manufacturing, residential, hotel, retail, and other mixed-use components are planned.
The attached agreement provides TIRZ funding for only the first phase of the project. Phase 1 includes the conversion of a significant portion of the main building and construction of a new pharmaceutical manufacturing facility. The agreement grants TIRZ funds (65% increment for 25 years) by reimbursing development/ redevelopment costs. The yearly reimbursements will be limited to no more than the actual increment generated by the Phase 1 property with an overall cap of $15 million. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS This item approves an Economic Development Agreement between the City of Plano and NexPoint Development Company, LP. Future grants will be provided for the project equal to the Available Tax Increment in the TIRZ #5 Fund and will not exceed $15,000,000. All funds will be distributed over 25-years in accordance with this agreement.
Approval of this item supports the City's Strategic Plan Critical Success Factors of Excellent, Innovative, and Accountable City Government. |
| ATTACHMENTS: | | Description | Upload Date | Type | | Agreement | 8/16/2024 | Agreement |
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