AGENDA ITEM # 57

KEY FOCUS AREA:

Economic Vibrancy

AGENDA DATE:

December 8,2010

COUNCIL DISTRICT(S):

1

DEPARTMENT:

Office of Economic Development

CMO:

A. C. Gonzalez, 671-8925

MAPSCO:

44X-Z, 45W, 54 8-0, 54 F-H, 55A, 55E

SUBJECT

Authorize an economic development grant agreement pursuant to Chapter 380 of the Texas Local Government Code in accordance with the City's Public/Private Partnership Program - Business Development Grant Program with Bishop Arts Village, LLC, related to the acquisition of real estate and development of certain property within the City of Dallas - Not to exceed $2,000,000 - Financing: 2006 Bond Funds

BACKGROUND

Bishop Arts Village, LLC (BAV) seeks City Council approval of an economic development grant in an amount not to exceed $2,000,000 related to the acquisition of real estate and project development of certain property within the North Oak Cliff area of the City of Dallas. BAV has plans to develop a mixed-use residential and commercial development exceeding 1 million s.f. and resulting in an investment exceeding $100 million. The company has already secured several properties for the proposed development and the requested funding will support the acquisition of additional properties, project planning and due diligence. The proposed Chapter 380 agreement represents Phase I of the City's proposed relationship with BAV. Subject to the successful implementation of Phase I, strategies and public incentives to support future phases of private development may be considered. If BAV does not implement the project beyond Phase I by December 31, 2015, BAV agrees to provide the City collateral interest in real property equal to $2 million, or the cash equivalent. The proposed development meets minimum eligibility requirements of the Public/Private Partnership Program as adopted by the City Council on June 23, 2010.

PRIOR ACTION/REVIEW (COUNCIL. BOARDS, COMMISSIONS)

On December 6, 2010, a memo was submitted to the Economic Development Committee regarding the proposed Chapter 380 economic development grant agreement with Bishop Arts Village, LLC.

FISCAL INFORMATION $2,000,000 - 2006 Bond Funds

OWNER DEVELOPER

Bishop Arts Village, LLC Bishop Arts Village, LLC

Farrokh Nazerian Farrokh Nazerian

MAP

Attached.

Agenda Date 12/08/2010 - page 2

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COUNCIL CHAMBER

December 8,2010

WHEREAS, the City recognizes the importance of its role in local economic development; and

WHEREAS, the City, pursuant to Resolution No.1 0-1721 approved by the City Council on June 23, 2010: (1) adopted revised Public/Private Partnership Program - Guidelines and Criteria, which established certain guidelines and criteria for the use of City incentive programs for private development projects; and (2) established programs for making loans and grants of public money to promote local economic development and to stimulate business and commercial activity in the City of Dallas pursuant to the Economic Development Programs provisions under Chapter 380 of the Texas Local Government Code, (the "Act"); and

WHEREAS, on June 23, 2010, the City Council elected to continue its participation in economic development grants pursuant to Chapter 380 of the Texas Local Government Code by Resolution No. 10-1721, as amended; and

WHEREAS, on November 7, 2006, Dallas voters approved $41,495,000 in bond funding to promote economic development activities which include the construction of certain public improvements including, but not limited to, street improvements, utility and other infrastructure improvements in Southern Dallas; and

WHEREAS, the City desires to enter into a Chapter 380 economic development grant agreement with Bishop Arts Village, LLC related to the acquisition of real estate and development of certain property within the City of Dallas.

NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

Section 1. That the City Manager, upon approval as to form by the City Attorney is hereby authorized to execute an economic development grant agreement pursuant to Chapter 380 of the Texas Local Government Code in accordance with the City's Public/Private Partnership Program - Business Development Grant Program with Bishop Arts Village, LLC, related to the acquisition of real estate and development of certain property within the City of Dallas.

Section 2. That the City Controller is hereby authorized to encumber and disburse funds from: Fund 9T52, Department ECO, Unit T808, Object 3016, Activity INFS, Encumbrance No. ECOT808B103, Vendor No. VS0000059741, in an amount not to exceed $2,000,000.

Section 3. That if Bishop Arts Village, LLC does not implement the project beyond Phase I by December 31, 2015, Bishop Arts Village, LLC agrees to provide the City collateral interest in real property equal to $2 million, or the cash equivalent.

COUNCIL CHAMBER

December 8, 2010

Section 4. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Dallas, and it is accordingly so resolved.

Distribution: Office of Economic Development - Tenna Kirk, 5CS

Office of Economic Development - J. Hammond Perot, 5CS Office of Economic Development - Karl Stundins, 2CN Office of Economic Development - Sajid Safdar, 2CN

City Attorney's Office - Barbara Martinez

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