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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | | AGENDA DATE: | February 28, 2017 |
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| | | | | | | | | SUBJECT: | Approve a First Amendment to the Tax Abatement Agreement with One Bethany Development Partners LP, to Establish February 20, 2017 as the Required Date for Commencement of Construction of an Approximately 125,000 Square Foot Class A Office Building Located North of Watters Creek at Montgomery Farm on Bethany Drive. [Kaizen] |
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| | | | | | | | | STAFF RESOURCE: | Daniel S. Bowman, AEDC Executive Director / CEO |
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| | | | | | | | | PREVIOUS COUNCIL ACTION: | On July 26, 2016, the City Council conducted a Public Hearing and adopted an Ordinance establishing Reinvestment Zone #32 and approved a Tax Abatement Agreement with One Bethany Development Partners LP. |
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| | | | | | | | | BOARD / COMMISSION ACTION: | On June 1, 2016, the Board of Directors of the Allen Economic Development Corporation (AEDC) approved a recommendation to the Allen City Council and the Collin County Commissioners Court for approval of a 50% tax abatement for 10 years on real property for One Bethany Development Partners LP in support of the construction of a 125,000 square foot Class A office building on Bethany Drive in Allen, Texas. |
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| | | | | | | | | ACTION PROPOSED: | Approve a First Amendment to the Tax Abatement Agreement with One Bethany Development Partners LP, to Establish February 20, 2017 as the Required Date for Commencement of Construction of an Approximately 125,000 Square Foot Class A Office Building Located North of Watters Creek at Montgomery Farm on Bethany Drive. |
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| | | | | | | | BACKGROUND
On June 1, 2016, the Board of Directors of the Allen Economic Development Corporation (AEDC) unanimously approved a recommendation to the Allen City Council for approval of a 50% tax abatement for 10 years on real property (building value only) for One Bethany Development Partners LP in support of the construction of a 125,000 square foot, 5-story Class A office building on Bethany Drive in Allen, Texas. On July 26, 2016, the Allen City Council approved establishing Reinvestment Zone #32 and approved a Tax Abatement Agreement with One Bethany Development Partners LP supporting construction of an approximately 125,000 square foot Class A Office Building located north of Watters Creek at Montgomery Farm on Bethany Drive.
The Tax Abatement Agreement approved by the City Council included a requirement that the project commence construction by November 30, 2016. Based on extended negotiations by and among One Bethany Development Partners, the capital partners for the project, and the Allen Economic Development Corporation (AEDC), commencement of construction on the project was delayed until February of 2017.
The AEDC already agreed to extend the deadline for commencement of construction in the other economic development agreements to February 20, 2017.
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| | | | | | | | STAFF RECOMMENDATION
Staff recommends the City Council approve a First Amendment to the Tax Abatement Agreement with One Bethany Development Partners LP, to establish February 20, 2017 as the required date for Commencement of Construction of an approximately 125,000 square foot Class A Office Building located north of Watters Creek at Montgomery Farm on Bethany Drive.
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| | | | | | | | MOTION
I make a motion to approve a First Amendment to the Tax Abatement Agreement with One Bethany Development Partners LP, to establish February 20, 2017 as the required date for Commencement of Construction of an approximately 125,000 square foot Class A Office Building located north of Watters Creek at Montgomery Farm on Bethany Drive.
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