Agenda Information Sheet
DEPARTMENT: Economic Development
DCM: Bryan Langley
Date: April 4, 2017
SUBJECT
Title
Consider adoption of an ordinance approving a fourth amendment to an 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
In 2007, the City entered into a Chapter 380 Economic Development Program Grant Agreement with Allegiance Hillview, L.P. for the Rayzor Ranch development, a 400-acre mixed use project located on the north and south sides of University Drive near I-35.
As a ground-up construction project, the development required significant public improvements by the developer, including widening University Drive from Bonnie Brae to I-35, water and wastewater infrastructure, and drainage. Using sales tax revenue generated by the project, the agreement reimburses the developer for costs incurred for the project's public improvements.
In 2010, RED Development became partners with Allegiance Hillview, L.P. in the project. To date, the developers have invested about $55 million in public improvements that are eligible for reimbursement, and another $8 million in reimbursable public improvements are under construction.
Currently, RED Development has a deadline of January 1, 2018, to meet 300,000 square feet of retail and commercial space in the Rayzor Ranch Town Center (on the south side of University Drive) in order to initiate its sales tax reimbursement for that portion of the development. If the deadline is not met, RED Development will not be reimbursed for any of the costs incurred for the public improvements it has made - or will make - for the Town Center.
RED Development has requested a Fourth Amendment to its agreement to extend its deadline to meet 300,000 square feet from January 1, 2018, to April 1, 2018.
Additionally, if at least 270,000 square feet have received a certificat...
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