City Council
	Agenda Request
Agenda Of:	10/03/06	Agenda Request No:		IV A
Initiated By:	Joseph A. Esch Executive Director	Responsible Department:		Business and Intergovernmental Relations
Presented By:	Joseph A. Esch Executive Director	Department Head:		Joseph a. esch executive director
		Additional Department. Head (s):		N/A
Subject / Proceeding:	Performance Agreement between the city of sugar land, texas and lake pointe town center, ltd.
Exhibits:	Lake Pointe Performance Agreement
Clearances			Approval
Legal:	Joe M. Morris		Executive Director:	n/a
Purchasing:	N/A		Asst. City Manager:	N/A
Budget:	Jennifer l. Brown Assistant Fiscal Services Director		City Manager:	Allen Bogard
Budget
Expenditure Required: $			n/a
Amount Budgeted/Reallocation: $			N/A
Additional Appropriation: $			n/a- fiscal year 2007/08 impact
Recommended Action
Approve Agreement with Lake Pointe Town Center, Ltd.
Executive Summary
Provided for Council’s consideration and action is the Performance Agreement Between The City of Sugar Land, Texas and Lake Pointe Town Center, Ltd. A premier mixed-use corporate, retail, and residential development, Lake Pointe Town Center will serve as a focal point for the City, complementing existing development, attracting new quality development, and facilitating commerce in the City while augmenting sales tax revenues. Participation in this agreement will further the attraction of upscale development to the City of Sugar Land, which will perpetuate and enhance quality of life and vitality of the community. The project and deal points were as reviewed by the City’s Business Incentive Committee prior to bringing it forward for approval, and at that time, it was recommended that staff initiate a draft agreement similar to the performance-based First Colony Mall agreement. The First Colony Mall agreement was based on a percentage of applicable sales tax created under the Chapter 380 of the Texas Local Government Code, and generated by the retailers of First Colony Mall. The Agreement allocates infrastructure to the appropriate source of funding to aid in reimbursement, and serves to clarify and enhance the understanding that retail developments relocating from inside the City of Sugar Land to Lake Pointe Town Center do not qualify revenue source when calculating the infrastructure reimbursement under this performance agreement. A performance-based agreement, this instrument ensures no impact to City resources as the costs of incentives are funded from project revenues. Deal Points: 1. LPTC will construct an approximately 200,000 sq ft space for mixed-use development, similar in tenant quality to those at the Woodlands Mall and Highland Village in Houston, as those developments exist today. 2. This Agreement provides City written approval on the architecture and aesthetics of the Lake Pointe retail development, including the pedestrian bridge across Brooks Lake, sidewalks, parking lots and garages, outdoor lighting and landscaping, and infrastructure and building improvements; as well as guarantees City approval on the caliber of the general retail establishment. 3. A maximum total performance-based reimbursement on specifically identified infrastructure improvement costs of up to $2,000,000. The incentive requires construction and percent of occupancy of the identified retail development prior to the payment of incentives being made. 4. Incentive payments are calculated at $.0075 of new sales taxes generated from the development by tenants new to the Sugar Land area. 5. Rate of Reimbursement: Sales taxes collected beginning July 1, 2007, $.0075 cents of the City’s $.02 of sales tax revenue is collected on the total annual sales in the development, until the City has paid $2,000,000 or for a period not to exceed ten (10) years (June 30, 2017). 6. The City receives a purchase option on a 5.6052 acre tract of land on Lake Point Town Center. The purchase option sets a price the City may purchase the property for use in pursuit of the development a second full service hotel and is in effect through March 2007.
Exhibits