The Farm in Allen is a mixed-use development located at the southeast corner of Alma Drive and SH 121 for which zoning was previously approved by the Allen City Council.  The project is being master developed by The Farm Development Co. to contain uses including office, retail, corporate headquarters, restaurants and entertainment.  The project will also contain numerous amenities designed specifically for the communities that surround it, including family-friendly parks, hike and bike trails, a lake with overlook seating and dining, play areas and nature trails.  Over 30 acres of open space will be provided and the 16 acres of greenbelt area along Watters Creek will remain a natural wooded area.

City and Allen Economic Development Corporation staff have been negotiating the terms of an incentive package for the purpose of spurring the development of significant infrastructure and a structured parking garage required for the project to move forward.  The overall incentive package for the project is valued at $9 million.  Of that total, $5 million is being provided to assist with the cost of infrastructure items such as roadways, water, sewer and storm drainage, and another $4 million is provided to assist with the cost of a structured parking garage with a minimum of 300 parking stalls.  As a condition of the grant, the developer is required to construct the following components of the project:  

Phase 1 Infrastructure:  This includes streets, sanitary sewer mains, storm drainage facilities, sidewalks, water mains, parks and other improvements needed for the +/- 55-acres comprising Phase 1 of the Project.  The required capital investment for this component is approximately $16 million.  The developer is required to commence construction on the Phase 1 Infrastructure by April of 2021 and complete construction by December of 2022.       

Phase 1 Parking Garage:  This is a 300-car structured parking garage that provides public access to portions of Phase 1 of the Project.  The required capital investment for this component is approximately $4.5 million.  The developer is required to commence construction on the Phase 1 Parking Garage by January  2022 and complete construction by December 2022.       

Phase 1 of the Project:  The commercial development that contains, at a minimum, an office building of at least three (3) stories in height containing a minimum of 100,000 square feet of gross rentable office space, and 50,500 square feet of rentable retail and restaurant space.  The required capital investment for this component is approximately $45 million.  The developer is required to complete construction on Phase 1 of the Project by December of 2023.       

The $9 million incentive package for the project would be provided from three separate funding sources:  

1. City of Allen Reserve Funds:  Approximately $4 million to fund the Parking Garage is proposed to be paid in cash using City of Allen Reserve Funds.  The City would provide these funds under its Chapter 380 Economic Development Authority.
2. City of Allen CO Bonds: Approximately $3 million (not to exceed 30% of the cost of public infrastructure) to be issued and paid in 2021. 
3. AEDC Sales Tax Revenue Bonds: Approximately 2 million to be provided to assist with infrastructure in the development.  The City of Allen will reimburse the AEDC for the cost of servicing these bonds through a separate agreement.

The attached agreements reflect the significant deal points listed above.  Contract language is still being negotiated and updated.  As such, non-material changes to the contracts may be made subject to ongoing City Attorney and City Manager negotiations.

Staff recommends that the City Council Authorize the City Manager to Negotiate and Execute an Economic Development Incentive and Easement Agreement and Project Development Agreement with The Farm Development Co.

I make a motion to authorize the City Manager to Negotiate and Execute an Economic Development Incentive and Easement Agreement and Project Development Agreement with The Farm Development Co.