City Council
	Agenda Request
Agenda Of:	12/16/08	Agenda Request No:		IV-I
Initiated By:	regina morales	Responsible Department:		economic development
Presented By:	regina morales	Department Head:		regina morales, director of economic development
		Additional Department. Head (s):		n/a
Subject / Proceeding:	consideration of and action on amendment no.1 to tax abatement agreement between the city of sugar land and town center lakeside, ltd.
Exhibits:	amendment no 1 to tax abatement agreement between the city of sugar Land and town center lakeside, ltd.
Clearances			Approval
Legal:	eugenia cano, assistant city attorney		Executive Director:	joe eschbusiness & intergov. relations
Purchasing:	n/a		Asst. City Manager:	n/a
Budget:	n/a		City Manager:	Allen Bogard
Budget
Expenditure Required: $			n/a
Current Budget: $			n/a
Additional Funding: $			n/a
Recommended Action
Approve Amendment No. 1 to Tax Abatement Agreement between the City of Sugar Land and Town Center Lakeside, Ltd.
Executive Summary
Planned Community Developer (PCD) is beginning to construct a Class A office building in Sugar Land Town Square on the remaining site along the northeast side along Hwy. 6 on 2.4053 acres. The 175,000 sq.ft building will divide the uses into 15,000 sq.ft for retail and 160,000 sq.ft for office and is being built as speculative. The building improvements are estimated to be $13 million. The speculative office creates an opportunity for 500-600 new corporate jobs for the community. On July 1, 2008, City Council approved tax abatement agreement for 750% over 8-years with a schedule of 100% through the first 7-years and 50% in year 8 for the office use only with a construction completion date of January 1, 2010. Since that approval, PCD has continued to move forward with site / building approvals and site work has already begun. However, the contractor now estimates the construction timeline has increased from their original assumption due to the delays created by Hurricane Ike and the small size and physical constraints on this site. They now expect to complete the building by March 2010 and are requesting a new construction completion deadline of June 1, 2010. The Amendment being proposed extends the construction completion deadline to June 1, 2010, but does not change any other obligations required by the Tax Abatement Agreement. The value hurdles and tax abatement years would remain the same. PCD’s Town Center Lakeside project would still be required to have at least $13 million in value by 1/1/10 and the tax abatement would commence 1/1/10. As a result there will be no financial impact to any of the entities as a result of this extended deadline. Staff is recommending approval of the Amendment to the Tax Abatement Agreement to extend the construction completion deadline only to June 1, 2010.
Exhibits