To: Aaron Rector, Interim City Manager
From: Mary Culver, Director of Economic Development
Subject:
Title
Consider a resolution approving Amendment #1 to the Chapter 380 Economic Development Program Agreement, approved by the City Council by Resolution No. 4604 on December 6, 2022, with R&K Sales, Inc dba Penguin Patch, establishing new grant limits and deadline for substantial completion, and authorizing the City Manager to execute said amendment to said Agreement on behalf of the City.
Action Requested:
Consider a resolution amending the Chapter 380 Economic Development Program Agreement for the development of Penguin Patch, a 49,739 square-foot light industrial and warehouse building at 721 Chisholm Trail.
Background:
The Chapter 380 Economic Development Program Agreement was approved by City Council by Resolution No. 4604 on December 6, 2022 with a total of $91,311.13.
The project was initially estimated to be 36,010 sf at that time, but was constructed at 49,739 sf. The Grantee has requested that the Chapter 380 Economic Development Program Agreement be amended to include the increased cost of the building permit, commercial plan review fee, and impact fees associated with the increased square footage of the project. The City Council reviewed this request during executive session on November 19, 2024.
City staff have included an additional amendment to the substantial completion date of the project to allow for an additional month to avoid unexpected delays due to the holiday schedule and all necessary final inspections before a Certificate of Occupancy can be issued on the project. The new deadline for substantial completion will be February 3, 2024.
Financial Impact:
The increased incentive amount is $46,860.90. The FY25 ED pro renata incentive budget is $225,000. The remaining budget will be $178,139.10.
Legal Review:
The City Attorney’s office has reviewed the proposed Chapter 380 Agreement Amendment and Resolution.