To: Mayor and City Council
From: Aaron Rector, City Manager
Subject:
Title
Consider a resolution approving Amendment #1 to a Chapter 380 Economic Development Program Agreement pursuant to Chapter 380 of the Texas Local Government Code, and pursuant to the City’s Economic Development Policy, with ME Development, related to a proposed indoor recreational multi-sports facility on approximately 7.8 acres at 401 Golden Triangle Blvd, Keller, Texas; and further authorizing the City Manager to execute said documents on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution approving Amendment #1 to a Chapter 380 Economic Development Agreement with ME Development LLC., to extend the deadline by which the Applicant must obtain a building permit to July 1, 2025.
Background:
ME Development LLC., is proposing to build an approximately 84,000 square-foot indoor sports facility for basketball, volleyball, cheer, and futsal at the Keller Sports Park. The expected cost of the facility is approximately $17,000,000.00. City Council approved the original incentive agreement on May 7, 2024 in an amount not to exceed $396,461. The Applicant also has an existing ground lease with the city for undeveloped land at the northwest corner of the sports park.
Ground lease timeline:
- October 17, 2023: Council approved the Ground Lease 380 Agreement which included a due diligence period of six (6) months, with rent commencing on April 1, 2024.
- March 19, 2024: Council approved an extension to the due diligence period to June 17, 2024.
- May 7, 2024: Council approved Amendment No. 2 to the Ground Lease Agreement to extend the rent commencement date to July 1, 2024, to align with the new Due Diligence Period.
- Apr. 1, 2025: The Applicant is requesting a third amendment to the Ground Lease Agreement to extend the deadline by which they must obtain a building permit to July 1, 2025. That request is on the agenda as a separate item.
The Applicant is requesting to amend the incentive agreement so that the deadline for obtaining a building permit is extended from May 9, 2025 to July 1, 2025. This request aligns with the Applicant’s proposal to amend the Ground Lease Agreement.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial