Agenda Information Sheet
DEPARTMENT: Economic Development
CM/ ACM: Bryan Langley
Date: March 8, 2017
SUBJECT
Title
Receive a report, hold a discussion, and make a recommendation to City Council regarding a fourth amendment to the economic development program grant agreement with Allegiance Hillview, L.P. (now Allegiance GL LLC, DB Denton II LLC, and Rayzor Ranch 380 Associates, LLC) for the Rayzor Ranch development.
Body
BACKGROUND
The City Council approved a Chapter 380 Economic Development Program Grant Agreement with Allegiance Hillview, LP, on May 15, 2007 (Ord. 2007-113). The agreement provides a sales tax reimbursement of a portion (currently 50%) of the City sales taxes generated by the project for public improvement costs, which included the widening of Highway 380, which bisects the project.
This document provides a brief summary of the incentive for the Rayzor Ranch development. Exhibit 3 provides a more detailed history of the development. In March 2009, the First Amendment to the original agreement was approved (Ord. 2009-064). The amendment separated the development into two phases. In June 2010, the City approved an Economic Development Program Grant Agreement with Allegiance Hillview, which replaced the original Agreement.
In July 2010, RED Development and Allegiance Hillview officially became partners in the project. The Amendment (2010-210) assigned a portion of the incentive grant payments to RED Rayzor Ranch, LLC (RED Development). The Second Amendment, which increased eligible improvements to cover an additional Texas Department of Transportation (TxDOT) access improvements and carrying costs, was approved in May 2014.
The Third Amendment in November 2015, facilitates the development, by O'Reilly Hotel Partners of a Hotel and Convention Center. The amendment compensates the grantee for the estimated revenue loss for the Hotel and Convention Center property that would no longer be available as retail acreage.
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