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HomeMy WebLinkAbout09/26/2012 City Council-SS September 26, 2012 MINUTES SPECIAL SESSION JOINT MEETING AGENDA OF THE CITY OF THE COLONY CITY COUNCIL ECONOMIC DEVELOPMENT CORPORATION (TYPE A) COMMUNITY DEVELOPMENT CORPORATION (TYPE B) THE COLONY LOCAL DEVELOPMENT CORPORATION SEPTEMBER 26, 2012 The Joint/Special Session was called to order at 7:03 p.m. on the 26th day of September 2012, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: 1.0 CALL TO ORDER: City Council (7:03) Joe McCourry Mayor Present Kirk Mikulec Councilmember Absent Richard Boyer Councilmember Present (7:27) Jeff Connelly Councilmember Present David Terre Councilmember Present Perry Schrag Cotulcilmember Present Joel Marks Mayor Pro-Tem Present Economic Development Corporation (Type A Board) (7:04 p.m.) Tom Tvardzik President Present David Smith Member Present David Peerson Member Absent Ferri Omonije Member Present (7:05) Kevin Braby Member Present Community Development Corporation (Type B Board) (7:05 p.m.) TeRon Lawrence President Absent Steve Sohn Vice-President Present Don Becket Member Present Lisa Leary Member Present Kathy Braby Member Present Susana Perez Member Present (vacant position) Local Development Corporation 7:06 p.m Joe McCourry President Present Troy Powell Member Present Kirk Mikulec Member Absent Richard Boyer Member Present (7:27) Jeff Connelly Member Present September 26, 2012 David Terre Member Present Perry Schrag Member Present Joel Marks Member Present Tod Maurina Member Present Discussion of Nebraska Furniture Project Timeline- Tod Maurina gave a brief overview of the possible meeting schedule for the Public Improvement District public hearings and public notices, etc. All matters should be completed by November. He added that in the future the city will try to hold meetings for the EDC and CDC on their regular meeting days. 2.0 REGULAR ECONOMIC DEVELOPMENT CORPORATION (TYPE A) AGENDA ITEMS 2.1 Discuss and consider real estate appraisal performed on the approximately 433 acre tract or tracts of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. City attorney Jeff Moore explained that the boards have four items to consider. First is the preliminary draft appraisal that was received today. The total appraisal amount is $63M. He said that HB 782 for cities and Type B corporations says that before property is purchased with Type B proceeds an independent appraisal must be performed (approved by the boards May 2012). A copy of the appraisal document was provided. Motion to approve the real estate appraisal by Crosson Dannis, Inc., on the approxirrrately 433 acre tract or tracts of land as presented- Srnith; second by Braby; motion passed with all ayes. 2.2 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, a Texas limited liability company, an undivided interest in an approximately 82 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Jeff Moore advised that this resolution authorizes the execution of all real estate and closing documents (closing statement not received yet) to acquire the 82 acre tract of land. He reviewed that the bond validation suit judgment received in January stipulated that the property would be conveyed from 121 Acquisition to the Economic Development Corporation, Community Development Corporation, and the Local Development Corporation. This would remain in place until the construction of Nebraska Furniture Mart is completed, then the ownership would revert back to 121 Acquisition. Also, if bonds don't get issued then the property could revert back then as well (tear up September 26, 2012 provision). Jeff further explained that the separation of the 82 acres from the total (433 acres) is because of the permissible projects for Type A and Type B (by percentage) for each section. Jeff then reviewed the legal descriptions that had been revised since the packet was printed. To be exact on the acreage the city owned property and the McKamy cattle trail had been removed from the acreage leaving exactly 79.613 acres. All documents will be amended to reflect that acreage change. Contract includes a tear up provision that states that if bonds are not issued by December 31, 2012 the borrowers could elect not to pay the interest payments and deed the property back to 121 Acquisition. Motion to approve the resolution, and authorize the president to execute the real estate contract of sale, proinissmy note, special wmrranty deed, deed of trust, and all necessary documents to acquire fi°ont 121 Acquisition Company, LLC, an undivided interest in the approximately 82 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Smith; second by Braby; motion passed with all ayes. 2.3 Discuss and consider a petition received from 121 Acquisition Company, LLC, a Texas limited liability company, concerning the creation of a public improvement district for approximately 439.12 acres of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project, and authorize the execution of waivers for of the 15-day notice for the public hearing on the creation of the public improvement district to be held on October 8, 2012, and waiver of the 20-day protest period after the public improvement district is created. Jeff Moore discussed the PID structure and process, and the public hearing process. The Tax Increment Finance District has been created but the PID is the back up if necessary to pay the bond payments in the event that the sales and property taxes do not generate enough to make said bond payments. All property owners were notified, however, this item authorizes a waiver of the 15 day notice for the public hearing on the PID. The public hearing will be held on October 8, 2012. Jeff reviewed future items that will be presented for board approval. It was noted that the city council will oversee the PID and that the assessment can change from year to year. Misty Ventura, attorney for the developer, further explained how a PID works, and stated that it is anticipated that the PID will stay in place in the future since it will be attached to a geographic area and not an entity. Lastly, with the waiver of the 20 day protest period (required before public improvements can start), construction can commence. Motion to approve the petition for the creation of the public improvement district from 121 Acquisition Company, LLC, on the approximately 439.12 acres on land as presented, and authorize the execution of waivers fir the 15-day notice of the October 8, 2012 public hearing, and for the 20-day protest period following the creation of the public improvement district- Onionije; second by Smith; motion passed with all ayes. September 26, 2012 2.4 Adjourn Economic Development Corporation- 7:38 p.m. 3.0 REGULAR COMMUNITY DEVELOPMENT CORPORATION (TYPE B) AGENDA ITEMS 3.1 Discuss and consider real estate appraisal performed on the approximately 433 acre tract or tracts of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Motion to approve the real estate appraisal by Crosson Dannis, Inc., oft the approximately 433 acre tract or tracts of land as presented- Leary; second by Beckel; motion passed with all ayes. 3.2 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, a Texas limited liability company, an undivided interest in an approximately 82 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Jeff Moore reiterated the tear up provision included in the real estate contract [December 31, 2012.] (See EDC above.) Purchase price is $11,561,787.57 [President Lawrence absent.] Motion to approve the resolution, and authorize the president or vice president to execute the real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, an undivided interest in the approximately 82 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented-Beckel; second by Perez; motion passed with all ayes. 3.3 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, a Texas limited liability company, an undivided interest in an approximately 351 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Jeff Moore stated that Type A is not involved with the purchase of this portion of the property. These documents are similar to the previous (82 acres) documents except for it being for 351 acres. Purchase price is $51,018,368.18. If bonds are not issued by March 31, 2013 the property can be conveyed back to 121 Acquisition. September 26, 2012 Motion to approve and authorize the president or vice president to execute the real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire front 121 Acquisition Company, LLC, an undivided interest in the approximately 351 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Braby; second by Perez; motion passed with all ayes. 3.4 Discuss and consider a petition received from 121 Acquisition Company, LLC, a Texas limited liability company, concerning the creation of a public improvement district for approximately 439.12 acres of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project, and authorize the execution of waivers for of the 15-day notice for the public hearing on the creation of the public improvement district to be held on October 8, 2012, and waiver of the 20-day protest period after the public improvement district is created. (Same item as EDC 2.3 above.) Member Don Beckel questioned the fact that "trails" were not specifically listed in Section IA as other uses are. City Attorney Jeff Moore stated that Tax Code Chapter 311 and Chapter 372 of the Texas Local Government Code includes this language and though it doesn't use the word "trail", it does include "parks" and can be funded. It was clearly stated by Misty Ventura that a trail system/parks will be included. Motion to approve the petition for the creation of the public improvement district from 121 Acquisition Company, LLC, on the approximately 439.12 acres on land as presented, and authorize the execution of waivers for the 15-day notice of the October 8, 2012 public hearing, and for the 20-day protest period following the creation of the public improvement district- Perez; second by Beckel; motion passed with all ayes. 3.5 Adjourn Community Development Corporation 7056 p.m. 4.0 REGULAR LOCAL DEVELOPMENT CORPORATION AGENDA ITEMS 4.1 Discuss and consider real estate appraisal performed on the approximately 433 acre tract or tracts of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Motion to approve the real estate appraisal by Crosson Dannis, Inc., on the approximately 433 acre tract or tracts of land as presented - Connelly; second by Powell; motion passed with all ayes. September 26, 2012 4.2 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, a Texas limited liability company, an undivided interest in an approximately 82 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Member Perry Schrag asked whether there are any delinquent taxes on the property. Misty Ventura, attorney representing the developer, advised that any that were due previously were settled with the original closing in November of 2011. Any due at present will be settled at the upcoming closing and are the responsibility of the seller. Motion to approve the resolution, and authorize the president to execute the real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, an undivided interest in the approximately 82 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Connelly; second by Boyer; motion passed with all ayes. 4.3 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, a Texas limited liability company, an undivided interest in an approximately 351 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Motion to approve and authorize the president to execute the real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, an undivided interest in the approximately 351 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Terre; second by Powell; motion passed with all ayes. 4.4 Discuss and consider a petition received from 121 Acquisition Company, LLC, a Texas limited liability company, concerning the creation of a public improvement district for approximately 439.12 acres of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project, and authorize the execution of waivers for of the 15-day notice for the public hearing on the creation of the public improvement district to be held on October 8, 2012, and waiver of the 20-day protest period after the public improvement district is created. September 26, 2012 Motion to approve the petition for the creation of the public improvement district from 121 Acquisition Company, LLC, on the approximately 439.12 acres on land as presented, and authorize the execution of waivers for the I5-day notice of the October 8, 2012 public hearing, and for the 20-day protest period following the creation of the public improvement district- Connelly; second by Powell Member Joel Marks confirmed with the city attorney that any assessments will be contained within the geographical area of the NFM development, and will not be applicable to any other properties outside that area. President Joe McCourry confirmed that any new businesses moving into the development in the future will be subject to the assessment. Motion passed with all ayes. 4.5 Adjourn Local Development Corporation- 8:10 p.m. 5.0 REGULAR CITY COUNCIL AGENDA ITEMS 5.1 Discuss and consider real estate appraisal performed on the approximately 433 acre tract or tracts of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Motion to approve the real estate appraisal by Crosson Dannis, Inc., on the approximately 433 acre tract or tracts of land as presented- Schrag; second by Marks; motion passed with all ayes. 5.2 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents by and between The Colony Local Development Corporation, The Colony Economic Development Corporation, The Colony Community Development Corporation, and 121 Acquisition Company, LLC, a Texas limited liability company, to acquire an undivided interest in an approximately 82 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project, Motion to approve resolution authorizing The Colony Economic Development Corporation, The Colony Community Development Corporation, and The Colony Local Development Corporation to execute the real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, an undivided interest in the approximately 82 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Terre; second by Marks; motion passed with all ayes. September 26, 2012 5.3 Discuss and consider a resolution authorizing and approving a real estate contract of sale, promissory note, special warranty deed, deed of trust, and all necessary documents by and between The Colony Local Development Corporation, The Colony Economic Development Corporation, The Colony Community Development Corporation, and 121 Acquisition Company, LLC, a Texas limited liability company, to acquire an undivided interest in an approximately 351 acre tract of land generally located along the south side of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway, concerning the Nebraska Furniture Mart Texas project. Motion to approve resolution authorizing The Colony Community Development Corporation, and The Colony Local Development Corporation to execute the real estate contract of sale, promissory note, special ;varranty deed, deed of trust, and all necessary documents to acquire from 121 Acquisition Company, LLC, an undivided interest in the approximately 351 acre tract of land, with the insertion of the updated legal description of the property, and updated title exceptions, as presented- Connelly; second by Marks; motion passed with all ayes. 5.4 Adjourn City Council And with no further business to discuss the meeting was adjourned at 8:15p.m. APPROVED: Jo cCour Mayor ty of The Colony ATTEST: C iristie Wilson, TRMC F3 t' City Secretary '`~azza;~~p