[3.A. Consider approval of the minutes from the March 20, 2023 Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary)]

THE FIRST ITEM ON OUR AGENDA WE'LL GO AHEAD AND DISPENSE WITH THAT IS TO CONSIDER APPROVAL OF THE MINUTES.

THIS IS ITEM 3A, APPROVAL OF THE MINUTES FROM THE MARCH 20TH, 2023 ECONOMIC DEVELOPMENT CORPORATION TYPE A MEETING.

I REALIZE I'M THE ONLY ONE IN THE MEETING THAT WAS THERE, SO IF GENTLEMEN HAVE ANY PARTICULAR EXCEPTION TO ANYTHING ON THE MINUTES, THEN PLEASE SIGNIFY OTHERWISE.

THEN I'LL MAKE A MOTION TO APPROVE THE MINUTES OF THE MARCH 20TH, 2023 TYPE A MEETING.

I'LL SECOND. ALL RIGHT.

I HAVE A MOTION BY MYSELF.

A SECOND BY ADAM RUSSELL.

ALL THOSE IN FAVOR? ARE WE VOTING WITH THE, WE'RE GOOD WITH THAT? OKAY. BY SHOW OF HANDS, I BELIEVE WE HAVE UNANIMOUS VOTE.

[5. EXECUTIVE SESSION]

WE DO HAVE THE NEED FOR EXECUTIVE SESSION PRIOR TO ANY OTHER ACTIVITY TONIGHT.

SO IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE, WE WILL CONVENE IN EXECUTIVE SESSION PURSUANT TO SECTION 551.071 AND OR 551.072 OF THE TEXAS GOVERNMENT CODE.

I'LL NEED A MOTION TO..

MR. CHAIR IT'LL ALSO BE 551.087.

087, OKAY.

OKAY. YEAH. THE LAST THREE LIST.

THANK YOU. 551.087.

IS THERE A MOTION? SO MOVED.

SECOND MOTION BY RUSSELL.

SECOND BY SCOTT. ALL THOSE IN FAVOR? ALL RIGHT, MOTION PASSES BY UNANIMOUS VOTE.

WE ARE IN EXECUTIVE SESSION AT 3:02.

SESSION. SO MOVED.

SECOND. ALL RIGHT.

MOTION BY RUSSELL. SECOND BY SCOTT TO RECONVENE IN OPEN SESSION.

ALL THOSE IN FAVOR? MOTION PASSES BY.

UNANIMOUS VOTE.

[3.B. Consider approval of a Performance Agreement between the Burleson 4A Economic Development Corporation and Craftmasters for a development located within Hooper Business Park in Burleson, Texas. (Staff Presenter: Alex Philips, Economic Development Director)]

THE NEXT ITEM ON OUR AGENDA IS ITEM THREE B, TO CONSIDER APPROVAL OF A PERFORMANCE AGREEMENT BETWEEN THE BURLESON 4A ECONOMIC DEVELOPMENT CORPORATION AND CRAFT MASTERS FOR DEVELOPMENT LOCATED WITHIN HOOVER BUSINESS PARK IN BURLESON, TEXAS.

THIS WILL BE PRESENTED BY ALEX PHILLIPS, OUR HOME RUN OUT OF THE PARK ECONOMIC DEVELOPMENT DIRECTOR.

APPRECIATE IT. GOOD EVENING BOARD PRESIDENT AND BOARD MEMBERS.

ALEX PHILLIPS HERE TO PRESENT TO YOU AN AGREEMENT WITH, I WOULD SAY, A VERY CHANGING LANDSCAPE PROJECT FOR THE CITY OF BURLESON WITH CRAFT MASTERS.

I KIND OF WANT TO GO OVER THE PRESENTATION, THE OVERVIEW OF THE PRESENTATION, GO BACK IN TIME A LITTLE BIT TO TALK ABOUT THE WEST SIDE DEVELOPMENT AND HOW IT BECAME TO WHAT IT IS TODAY AND HISTORY THAT WE'VE HAD WITH CRAFT MASTERS.

GO THROUGH THE CRAFT MASTER'S PRESENTATION.

I'LL INTRODUCE YOU TO ONE OF THEIR EXECUTIVES AND HE'LL GO OVER DETAILS OF WHAT CRAFT MASTERS IS AND WHAT THEY WANT TO DO IN OUR CITY.

DETAILS OF THE DEVELOPMENT AND THEN KIND OF FEEDBACK NEXT STEPS GOING FORWARD.

SO ON THE WEST SIDE, DEVELOPMENT, BACK IN JULY OF 2020, CITY COUNCIL APPROVED A MASTER PLAN COMMUNITY POLICY, AND THAT WAS TO OUTLINE BIGGER DEVELOPMENTS, AMENITY CENTERS FOR PLANNED DEVELOPMENTS OVER CERTAIN ACREAGE SIZE, DIFFERENT THEMES THAT SUBDIVISIONS WOULD HAVE OVER CERTAIN NUMBER OF HOMES.

IN 2020, IN OCTOBER 2020, THE CITY COUNCIL APPROVED AND THE 4A BOARD APPROVED THE EDC STRATEGIC PLAN THAT INCLUDED A MEDICAL PROFESSIONAL OFFICE PARK AS A GOAL. IN JUNE OF 2021, THE 384 CHISHOLM SUMMIT DEVELOPMENT, ALONG WITH AT THE SAME TIME THE EDC PURCHASED HOOPER BUSINESS PARK.

THAT WAS KIND OF A JOINT EFFORT AND PUTTING THAT CHISHOLM SUMMIT 380 TOGETHER THAT THE EDC WOULD PURCHASE THAT PROPERTY FOR A FUTURE MEDICAL OFFICE PARK . TRADE SCHOOL WAS IDENTIFIED AS A TOP PRIORITY FOR CITY COUNCIL THAT WAS ADOPTED BY CITY COUNCIL IN SEPTEMBER 2022.

IN MARCH OR I'M SORRY, SEPTEMBER 20TH, 22, WE DID RECEIVE AN LOI FROM TEXAS HEALTH TO DISCUSS A POTENTIAL DEVELOPMENT AT HOOPER BUSINESS PARK THAT HAS EXPIRED IN EARLIER THIS YEAR.

IN MARCH WE DID CITY COUNCIL APPROVED THE DESIGN CONTRACT FOR THE REGIONAL DETENTION POND IN OCTOBER OF 2022 FOR HOOPER BUSINESS PARK.

SO LOOKING AT WHAT WE CALL PROJECT WORKFORCE AKA CRAFT MASTERS, WE GOT OUR FIRST PHONE CALL FROM CRAFT MASTERS IN MEETING WITH THEM IN SEPTEMBER OF 2021.

WE HAD OUR FIRST EXECUTIVE SESSION WITH CITY COUNCIL ABOUT THE PROJECT AND RECEIVED DIRECTION TO KEEP MOVING FORWARD.

[00:05:02]

IN JANUARY OF 2022, EDC STAFF VISITED FULL SAIL UNIVERSITY, WHICH IS ONE OF THEIR OTHER OPERATIONS THAT THEY HAVE IN ORLANDO, FLORIDA.

WE MET WITH REPRESENTATIVES AND GOT A FULL TOUR OF FULL SAIL UNIVERSITY.

CITY STAFF AND WORKFORCE REPRESENTATIVES WORKED ON SITE DUE DILIGENCE FROM FEBRUARY TO SEPTEMBER OF 2022.

WE DID HAVE AN EXECUTIVE SESSION TO DISCUSS POTENTIAL FOR $6 MILLION IN INCENTIVES WAS TOLD TO MOVE FORWARD BY CITY COUNCIL IN OCTOBER.

IN DECEMBER OF 2022, WE WERE INFORMED BY PROJECT WORKFORCE THAT THE SITE OFF OF 917 WAS TOO COSTLY DUE TO THE OFF SITE COST OF TAKING SEWER DOWN THERE. TXDOT REQUIREMENTS WITH 917, BETHESDA WATER REQUIREMENTS.

SO IN JANUARY OF 2023 WE HAD ANOTHER EXECUTIVE SESSION WITH CITY COUNCIL TO DISCUSS A NEW SITE AT HOOPER BUSINESS PARK AND RECEIVED DIRECTION TO MOVE FORWARD.

AT THAT TIME, WE ENGAGED TISCHLER BICE TO CONDUCT A THIRD PARTY FINANCIAL IMPACT ANALYSIS AND THEN WE RECEIVED THAT REPORT BACK AND PRESENTED THAT TO CITY COUNCIL IN EXECUTIVE SESSION, ALONG WITH THE INCENTIVE PACKAGE TOTALING 4.45 MILLION AND GAINED FULL SUPPORT FROM CITY COUNCIL AT THAT TIME.

THE TERM SHEET IN MARCH EARLIER THIS YEAR WAS EXECUTED BY PROJECT WORKFORCE AND THE CITY AND WE BEGAN WORK ON THE 380 AGREEMENT.

SO AT THIS TIME, I WANT TO INTRODUCE CHAD TURNBULL WITH CRAFT MASTERS MANAGING DIRECTOR.

THAT BUTTON? YEAH. ALL RIGHT. YEAH.

WELL, THANK YOU FOR HAVING ME HERE.

IT'S GOOD TO SEE YOU ALL.

WE CONTINUE TO BE GRATEFUL TO BE HERE.

WE CONTINUE TO BE IMPRESSED AND SO HAPPY TO TO WALK THROUGH AND TELL YOU A LITTLE BIT MORE ABOUT WHAT WE'RE DOING.

CRAFTMASTERS IS FOCUSING ON SOLVING THE COUNTRY'S DESPERATE NEED FOR SKILLED TALENT IN EVERY AREA OF CONSTRUCTION BY REIMAGINING HOW TOMORROW'S WORKFORCE IS EDUCATED. SO YOU GUYS ARE AWARE THE CONSTRUCTION INDUSTRY GLOBALLY IS MASSIVE? 10.5 TRILLION IS THE ESTIMATE FOR THIS YEAR, AND IT'S EXPECTED TO GROW BY 37% OVER THE COURSE OF THE NEXT SEVERAL YEARS, PUTTING THE ESTIMATE AT 14.4 TRILLION GLOBALLY IN 2030.

THE CHALLENGE WITH THAT GROWTH IS HOW DO YOU STAFF IT? SO WE ALREADY HAVE AN INCREASE THIS YEAR IN JOB OPENINGS YEAR OVER YEAR OF 18%.

THE ANNUAL THE ADDITIONAL CONSTRUCTION HIRING NEED OVER NORMAL PACE IS OVER A HALF A MILLION.

AND WHEN YOU TAKE THE GROWTH OF THE CONSTRUCTION INDUSTRY AND THE AGING OF THE WORKFORCE AND THE LACK OF NEW FOLKS COMING IN BEHIND, YOU GET TO SOME STAGGERING STATISTICS.

AND SO THAT'S WHERE YOU SEE THE CHAMBER OF COMMERCE STUDY THAT SAYS 45% OF COMPANIES TURN DOWN PROJECTS BECAUSE THEY AREN'T ABLE TO STAFF IT.

AND YOU START TO SEE THE ANALYSIS THAT SAYS BY 2028, WE COULD HAVE A JOB, A PERSON SHORTFALL IN ABILITY TO FILL 3 MILLION JOBS.

SO IT'S DIRE, IT'S SCARY WHICH IS WHY WE HAVE REALLY LOOKED AT HOW DO WE FILL THIS NEED, HOW DO WE ADDRESS THIS ISSUE.

AND SO THE QUESTION THAT WAS POSED TO JOHN A FEW YEARS AGO, JOHN PHELPS, THE FOUNDER OF FULL SAIL UNIVERSITY, WAS WHAT IF YOU APPLIED YOUR 40 YEARS OF OF GROUNDBREAKING EDUCATION EXPERIENCE TO THIS NEED? IF YOU AREN'T FAMILIAR WITH FULL SAIL, IT WAS FOUNDED IN 1979 BY JOHN PHELPS, WAS A PIONEER IN THE EDUCATION FIELD.

IT WAS A STYLE OF EDUCATION.

HE CALLS IT POSITIVE REBELLION THAT REALLY LOOKS TO TO BE INNOVATIVE AND DISRUPTIVE IN THE WAY THAT FOLKS ARE EDUCATED.

AND SO TODAY, YOU CAN GET A LITTLE GLIMPSE OF WHAT A COUPLE OF THE EDUCATION ENVIRONMENTS TODAY IT'S AN INDUSTRY LEADER.

86,000 PLUS GRADUATES HAVE NOW LEFT THEIR MARK ON THE INDUSTRY.

IT'S A 210 ACRE CAMPUS WITH OVER 110 DIFFERENT STUDIO AND LAB ENVIRONMENTS.

22,000 STUDENTS FROM ALL 50 STATES AND 67 COUNTRIES.

AND FULL SAIL GRADUATES HAVE REALLY LEFT THEIR MARK ON THE INDUSTRY.

YOU GUYS THINK KNOW MY STATEMENT.

IF YOU'VE WATCHED A MOVIE OR IF YOU'VE LISTENED TO MUSIC OR YOU'VE PLAYED A VIDEO GAME, THEN YOU'VE SEEN FULL SAIL STUDENTS WORK.

YOU MAY NOT HAVE KNOWN IT.

AND THESE NUMBERS RIGHT HERE JUST HIGHLIGHT THOSE SPECIFICALLY THAT ARE CREDITED ON THESE AWARD WINNING PROJECTS.

[00:10:02]

SO OVER 40 YEARS IT HAS BEEN A LEGACY OF INNOVATIVE EDUCATION EXPERIENCES.

AND SO NOW WE WANT TO TAKE THAT KNOWLEDGE AND WE WANT TO SOLVE THIS PROBLEM.

WE WANT TO FIGURE OUT A NEW WAY TO TRAIN THE WORKFORCE.

AND WE ALSO WANT TO ADDRESS IN THE MIDST OF DOING THAT, EVEN TO REWRITE THE PERCEPTION OF WHAT IT MEANS TO BE A CRAFTS PERSON AS A RESPECTED CAREER, WHICH UNFORTUNATELY AND CURIOUSLY HAS DECLINED OVER THE LAST MAYBE 70 YEARS.

YOU GET A LOOK AT THE CAMPUS RENDERING OF WHAT WE WANT TO BUILD THERE IN HOOPER BUSINESS PARK.

YOU GET MORE UP CLOSE VIEW.

IT'S NOT YOUR TYPICAL EDUCATIONAL APPROACH.

IT'S AN INNOVATIVE APPROACH TO EDUCATION AND APPLIES THE THINGS THAT WE'VE LEARNED IN FULL SAIL OVER THE LAST 40 YEARS AND EXPANDS UPON THAT.

AND SO THE CAMPUS IS DESIGNED DIFFERENTLY.

THE PROJECTS ARE DESIGNED DIFFERENTLY, THE SCHEDULE IS DESIGNED DIFFERENTLY ALL AROUND THE STUDENT AND THE MOST EFFECTIVE AND EFFICIENT WAY TO EDUCATE A STUDENT.

WE WANT TO TEACH TIMELESS SKILLS.

ROCKS ARE HARD, WATER IS WET.

THAT'S NOT CHANGING.

YOU KNOW, WE WANT TO MAKE SURE THAT THEY KNOW THE BASICS OF HOW THE FUNDAMENTALS OF THEIR INDUSTRY WORK.

BUT WE ALSO WANT TO TEACH THE LATEST TECHNOLOGY TO MAKE SURE THAT STUDENTS HAVE THE OPPORTUNITY TO UNDERSTAND THE ABSOLUTE LATEST TOOLS OF THE TRADE, THE LATEST TECHNIQUES WE WANT TO TEACH THEM IN REAL WORLD PROJECTS.

SO WE REALLY START WITH THAT IN MIND.

WHAT IS THE INDUSTRY, WHAT IS THE FIELD THAT THEY'RE GOING TO WORK IN? HOW DO WE DESIGN AN EDUCATION THAT TAKES THEM THROUGH THAT SO THAT THEY'RE SPECIFICALLY READY TO GRADUATE AND ENTER THE WORKFORCE AND CONTRIBUTE? SO IT'S HANDS ON EDUCATION.

IT'S PROJECT BASED WORK IN PROFESSIONAL ENVIRONMENTS.

PROGRAMS START MONTHLY SO A STUDENT CAN ENROLL AT ANY POINT, MORNING OR AFTERNOON CLASSES TO FIT WHAT THEIR SCHEDULE PREFERENCES ARE.

AND THEN MOST PROGRAMS CAN BE COMPLETED IN A YEAR.

IN TERMS OF WHAT OUR AREAS OF STUDY WILL BE, IT'S KIND OF THE THE GAMUT.

WE LOOK AT ALL AREAS FROM WOOD, AIR, POWER, STONE, WATER, EARTH METAL, AND THEN THE LOGIC OF HOW ALL THAT COMES TOGETHER.

AND WE DO THAT FOR A COUPLE OF REASONS.

WE KNOW THAT A VERSATILE EMPLOYEE IS A VALUABLE EMPLOYEE.

THE ABILITY TO DO MORE FOR THE COMPANY THAT THEY WORK FOR.

AND WE ALSO WANT TO CREATE AN ENVIRONMENT WHERE STUDENTS HAVE AN OPPORTUNITY TO GET EXPOSURE TO A LOT OF DIFFERENT THINGS AND THEN FIGURE OUT WHAT THEY'RE GOOD AT, FIGURE OUT WHAT THEY LOVE, FIGURE OUT WHAT THEY WANT TO PURSUE, AND THEN GO ON AND SPECIALIZE FROM THERE.

WE OFFER THAT VERY TYPICALLY IN A FOUR YEAR BACHELOR'S TYPE ENVIRONMENT, IN A TRADE SCHOOL TYPE ENVIRONMENT, WE ASK STUDENTS TO SPECIALIZE IN ADVANCE OF ARRIVING AT THE SCHOOL.

WE WANT TO GIVE STUDENTS AN OPPORTUNITY TO LEARN AND GROW AND AND CHANGE.

EACH CAMPUS WILL HAVE THE ABILITY TO GRADUATE 5000 STUDENTS PER YEAR.

THAT WILL BE OUR GOAL OF ENROLLMENT AND GRADUATES.

AND OUR VISION IS TO PUT 20 CAMPUSES ACROSS AMERICA GRADUATING 100,000 SKILLED CRAFT MASTERS PER YEAR, WHICH, AS YOU KNOW, THAT CAN SEEM LIKE A BIG NUMBER WHEN YOU NOTE THAT 3 MILLION SHORTFALL.

IT FEELS LIKE A DROP IN THE BUCKET.

BUT WE WANT TO BEGIN TO DO OUR PART TO MAKE A DENT IN THAT.

AND STILL BURLESON, ORLANDO AND PHOENIX WERE OUR PRIMARY TARGETS FOR OUR CORPORATE HEADQUARTERS AND OUR VERY FIRST FLAGSHIP CAMPUS.

WE STILL LOVE BURLESON.

THAT'S IT FOR ME. THANKS.

SO WE KIND OF GO THROUGH THE DEVELOPMENT DETAILS OF THE PROJECT.

IT'S LOCATED OUT HERE AT HOOPER BUSINESS PARK, CLOSE TO 1902 AND THE CHISHOLM TRAIL TOLLWAY JUST ON THE NORTH SIDE OF THE CHISHOLM SUMMIT DEVELOPMENT AND LAKEWOOD BOULEVARD THAT'S UNDER CONSTRUCTION.

SO THE PROPOSAL FROM CRAFTMASTERS THAT CRAFTMASTERS TO PURCHASE 62 ACRES IN TWO PHASES, LOCATED OUT AT HOOPER BUSINESS PARK FOR THE CAMPUS HEADQUARTERS.

HEADQUARTERS EXPANSION, COFFEE SHOP AND A STUDENT EXPERIENCE CENTER.

CRAFTMASTERS IS PROPOSING THE CAMPUS CORPORATE CAMPUS OF CONSTRUCTION TRADE SKILLS WITH AN ENROLLMENT LIKE CHAD SAID, 5000 STUDENTS BY 2031 PHASED IN SIX EQUAL PORTIONS.

THAT CAPITAL INVESTMENT WOULD BE $90 MILLION BY THE 2026 TAX YEAR.

THE HEADQUARTER EXPANSION OF MINIMUM OF 400 NEW EMPLOYEES WITH AN AVERAGE WAGE OF 57,000 BY 2031 PHASED IN THAT SAME SIX YEAR PERIOD BEGINNING IN 2026.

AND THAT HEADQUARTERS BEING DONE WITH A CAPITAL INVESTMENT OF AN ADDITIONAL $25 MILLION BY THE 2029 TAX YEAR.

[00:15:07]

ALSO PART OF THIS CRAFT MASTER'S PROGRAM, NOT A PART OF THE PERFORMER THAT WE PUT TOGETHER WITH THE INCENTIVES WAS THEY'RE GOING TO BE BUILDING RESIDENTIAL COMMUNITY OF AT LEAST 100 SINGLE FAMILY UNITS ON A PROPERTY IN THE VICINITY AS PART OF THE TRADE SCHOOL TRAINING PROGRAM.

HE MENTIONED THE HANDS ON TRAINING.

THEY'RE GOING TO BE BUILDING HOUSES.

THE STUDENTS WILL BE BUILDING THESE HOMES.

CAPITAL INVESTMENT OF THOSE WOULD BE ABOUT $35 MILLION BY THE 2033 TAX YEAR PHASED AGAIN, SIX EQUAL PORTIONS.

TOTAL CAPITAL INVESTMENT AT FULL BUILD OUT IS $150 MILLION.

SO KIND OF LOOKING AT THEIR FULL TIME EMPLOYEES AND ENROLLMENT BUILD UP CAMPUS IS THE LARGEST PHASE IN SIZE AND CAPITAL INVESTMENT.

YOU KNOW THAT $57,000 ANNUAL SALARY IS ABOVE THE BURLESON AVERAGE OF 54,000, AND IT'S PRETTY GOOD CLIP ABOVE THE JOHNSON COUNTY AVERAGE.

SO KIND OF GO THROUGH THE INCENTIVE OUTLINE OF HOW WE'RE GOING TO INCENTIVIZE THE PROJECT.

THESE ARE ALL OBLIGATIONS OF CRAFT MASTERS PRIOR TO CONSTRUCTION AUGUST OF THIS YEAR TO EXECUTE THE CONTRACT ON THE PHASE ONE, THE 54 ACRE PROPERTY AND THE AMOUNT OF $2.5 MILLION AND THE PHASE TWO PROPERTY IN THE AMOUNT OF $360,000.

AT THE SAME TIME, THE EDC IS GOING TO BE WORKING ON THE WATER AND WASTEWATER, MAKING SURE WHAT WE'RE DOING AT HOOPER BUSINESS PARK, THE WATER AND SEWER LINES THAT ARE UP THERE AND BEING CONSTRUCTED ARE BEING CONSTRUCTED IN A WAY THAT THAT CAN SERVE CRAFT MASTERS.

REGIONAL DETENTION POND ALSO WOULD START BEING CONSTRUCTED OFF SITE FOR HOOPER BUSINESS PARK LATER THIS YEAR OR EARLY PART OF NEXT YEAR REALLY.

THE DESIGN CONTRACT IS GETTING FINALIZED AND THEN ONCE PUBLIC WORKS WILL BE BRINGING THOSE PLANS FORWARD FOR THAT PROJECT.

BY THE END OF THE YEAR TO COMPLETE A PREDEVELOPMENT MEETING WITH THE CITY.

THEY'VE ALREADY HAD ONE PREDEVELOPMENT MEETING WITH THE CITY, I WOULD ASSUME THEY WOULD PROBABLY HAVE ANOTHER ONE WITH OUR GROUP BEFORE THEY SUBMIT PLANS.

DECEMBER 1ST OF THIS YEAR, SUBMIT AN APPLICATION FOR PLATING AND ZONING APPROVAL BY THE END OF MARCH OF NEXT YEAR TO SUBMIT THE BUILDING PLANS OF AT LEAST 190,000FT² DEVELOPMENT FOR THE CAMPUS AND CRAFTMASTER'S HEADQUARTERS AND THEN MAY OF NEXT YEAR PURCHASE THE PROPERTY, THE PHASE ONE PROPERTY 54 ACRE WITH THE DOWN PAYMENT OF 125,000 AND THEN WITHIN 30 DAYS OF CRAFT MASTERS GETTING THEIR BUILDING PERMIT, THE EDC PROVIDE A CASH GRANT OF 500,000.

SO OBLIGATIONS DURING CONSTRUCTION BY JUNE, THE END OF JUNE OF NEXT YEAR, THEY WOULD HAVE TO COMMENCE CONSTRUCTION OF THE CAMPUS AND CRAFTMASTER'S HEADQUARTERS.

ONCE THE DEVELOPER SUBMITTED PLANS FOR THE FULL DEVELOPMENT AND HAS EXPENDED MORE THAN A MILLION DOLLARS IN DEVELOPMENT FEES THE EDC PROVIDE A CASH GRANT OF $500,000 WITHIN 30 DAYS.

TOTAL FEES APPROXIMATE FEES THAT CRAFT MASTERS WILL INCUR WITH THEIR FULL DEVELOPMENT IS 2.5 MILLION.

UPON VERIFYING CAMPUS AND CRAFTMASTER'S HEADQUARTER CONSTRUCTION EXPENDITURES IN THE AMOUNT EXCEEDING $4 MILLION, THE EDC WILL PROVIDE A CASH GRANT OF $2.5 MILLION WITHIN 30 DAYS.

SO ONCE WE PAY THIS 2.5 MILLION, THE CRAFTMASTERS WOULD HAVE TO PAY THE BALANCE OF THE NOTE ON THE LAND WITHIN 90 DAYS OF THE 2.375 MILLION.

SO WE'D HAVE 2.5 GOING OUT EARLIER, THE 2.375 BACK ONCE WE CUT THEM THIS CHECK IN THE INCENTIVE PROGRAM.

AND THEN BY THE END OF SEPTEMBER OF 2026, THEY WOULD HAVE TO MAKE A MINIMUM CAPITAL INVESTMENT OF $90 MILLION.

AND THAT'S THE OPENING OF CRAFTMASTERS DATE AS WELL BY THAT TIME.

SO AFTER OPENING, IT'S ALL JOB COUNTS UPON 20 QUALIFIED JOBS BEING THERE FOR ONE CONSECUTIVE YEAR.

THE EDC PROVIDE A CASH GRANT OF 50,000 UPON 100 FULL TIME JOBS.

PHASE ONE AGAIN, ALL THESE ARE VERIFICATION OF ONE YEAR EMPLOYMENT ON SITE PRIOR TO THE INCENTIVE PAYMENT, $100,000 AFTER 100 JOBS AFTER 200 JOBS, IT'S ANOTHER 100,000.

UPON 380 FULL TIME, IT'S 50,000.

UPON 1000 PEOPLE BEING ENROLLED AT THE SCHOOL, IT'S 100,000 UPON 5000 PEOPLE BEING ENROLLED IN SCHOOL, IT'D BE ANOTHER 100,000 . PHASE TWO OBLIGATIONS FOR THE HEADQUARTERS EXPANSION BY THE END OF FEBRUARY OF 2028 COMPLETE THAT PRE-DEVELOPMENT MEETING APRIL OF 28, COMPLETE THE ZONING APPLICATION FOR THE PHASE TWO OF THE PROPERTY THE END OF MAY OF 2028.

[00:20:03]

THE PLATING APPLICATION FOR THE PHASE TWO SUBMIT THE BUILDING PLANS FOR THE HEADQUARTER EXPANSION BY THE END OF JULY OF 2028.

CLOSE AND PURCHASE THE PHASE TWO PROPERTY BY THE END OF AUGUST OF 2028.

SEPTEMBER 2028, COMMENCE CONSTRUCTION OF THAT HEADQUARTERS EXPANSION AND THEN COMPLETE THAT BY THE END OF 2029.

FOUR A OBLIGATIONS HERE ON THIS EXPANSION UPON RECEIVING THE CO AND THE CAPITAL INVESTMENT MEETING OR EXCEEDING THE 25 MILLION, THE EDC SHALL MAKE A PAYMENT OF $100,000.

SO SOME OF THE KEY TERMS IN THE AGREEMENT, ONCE THE VERIFICATION OF THE 4 MILLION IN CONSTRUCTION EXPENDITURES IS COMPLETE AND THE EDC IS ISSUED, THE $2.5 MILLION INCENTIVE, LIKE I SAID EARLIER, THAT WOULD TRIGGER THE 90 DAYS ON THE BALLOON PAYMENT OF THE 2.375 ON THE LAND PURCHASE.

WITHIN THE REAL ESTATE CONTRACT FOR PHASE ONE AND PHASE TWO INCLUDES THE RIGHT TO REPURCHASE THE LAND IF CRAFTMASTERS DOES NOT COMMENCE CONSTRUCTION AS DETAILED IN THE AGREEMENT. THE DEED DOES INCLUDE A RESTRICTION THAT THE LAND WILL NOT BE USED FOR A NON PROFIT SCHOOL FOR THE TERM OF THE AGREEMENT.

IN THE EVENT THE CITY BREACHES THE CONTRACT WITH CRAFTMASTERS AND THE AGREEMENT TERMINATES, THIS RESTRICTION IS NULL AND VOID.

DEVELOPMENT STANDARDS FOR THE CAMPUS HEADQUARTERS AND HEADQUARTERS EXPANSION ARE INCLUDED IN THE CONCEPT PLAN.

ZONING ON THE PROPERTY WOULD BE IN PLACE PRIOR TO THE PROPERTY PURCHASE AS THEY WOULD BE PLANNED FOR THE ZONING PRIOR TO THE END OF THE YEAR.

THE EDC WOULD HAVE TO BE A CO-APPLICANT IN THAT CASE BECAUSE WE WOULD STILL OWN THE LAND AT THAT TIME.

SO SOME DETAILS AND SUMMARY OF THE FINANCIAL IMPACT OF CRAFT MASTERS THAT WE DID WITH TISCHLER BICE.

CRAFTMASTERS ADDS AN ADDITIONAL $114 MILLION IN TAXABLE VALUE TO THE GENERAL FUND.

THIS EXCLUDES ANY FUTURE RESIDENTIAL DEVELOPMENT.

IT ADDS AN ADDITIONAL $335,000 ANNUALLY TO THE GENERAL FUND, ADDS AN ADDITIONAL 6.6 MILLION IN DIRECT BENEFIT IN 20 YEARS.

AFTER ALL THE COST AND INCENTIVES BETWEEN CRAFTMASTERS AND CHISHOLM SUMMIT, THE CITY BENEFITED OVER 20 YEARS IS $72 MILLION.

AND THIS FINANCIAL IMPACT ANALYSIS DID NOT INCLUDE ANY KIND OF INDIRECT IMPACT, WITH 5000 STUDENTS BEING ON CAMPUS.

SO HERE'S OUR PERFORMER LOOKING OVER TEN YEARS AND 20 YEARS.

YOU CAN SEE OUR TEN YEAR RETURN IS 128% OR A LITTLE BIT OVER ALMOST $6 MILLION.

5.8. OUR 20 YEAR RETURN IS 313% AND A LITTLE BIT OVER $14 MILLION THAT THE CITY RECEIVES OVER 20 YEARS.

TOTAL INCENTIVES OF THE PROJECT IS $4.54545 MILLION.

TOTAL DEVELOPMENT COST IS A LITTLE BIT OVER ALMOST 5.5 MILLION FOR THE PROJECT.

SO FEEDBACK IN NEXT STEPS.

TONIGHT, WE HAVE THE AGREEMENT IN FRONT OF YOU FOR APPROVAL.

STAFF RECOMMENDS THE APPROVAL OF THE PERFORMANCE AGREEMENT WITH CRAFT MASTERS.

IF THE BOARD WANTS TO AND APPROVES THIS AGREEMENT, THE PREDEVELOPMENT WOULD OCCUR BY THE END OF THE YEAR.

DEVELOPMENT SERVICES IS WORKING CURRENTLY WITH CRAFTMASTERS TEAM ON A PLANNED DEVELOPMENT ZONING THAT WILL COME FORWARD TO CITY COUNCIL APPROVAL IN 2024.

THE SITE PLAN AND PLAT TO BE SUBMITTED IN MAY OF NEXT YEAR FOR APPROVAL IN FIRST QUARTER OF 2024.

CIVIL AND BUILDING PLANS TO BE SUBMITTED FIRST QUARTER OF NEXT YEAR.

CONSTRUCTION TO BEGIN SECOND QUARTER OF NEXT YEAR AND CONSTRUCTION TO BE COMPLETE BY THE END OF SEPTEMBER OF 2026.

HERE TO ANSWER ANY KIND OF QUESTIONS THAT YOU MAY HAVE.

AND ASKED AND ASK AND ASK AND ANSWER IS ALL ALONG THE WAY HAVE BEEN GOOD, CONCISE, UNDERSTANDABLE.

I KNOW THE MEMBERS THAT ARE NEW HERE BESIDES MYSELF HAVEN'T BEEN IN ON ALL OF THAT, BUT THIS THING HAS BEEN THOROUGHLY VETTED FROM THE GET GO.

I THINK THE BIGGER PICTURE IS WHAT DOES THIS LOOK LIKE ON THE MAIN ENTRANCE TO THE CITY? WHAT HOW DOES THIS SET THE TONE FOR WHAT COMES WHEN A PERSON PULLS IN OFF THE CHISHOLM TRAIL PARKWAY AND SEES THIS AS THE FIRST MAJOR THING THAT THEY'LL SEE. THIS AND THE CHISHOLM SUMMIT DEVELOPMENT HAVE BOTH BEEN CRAFTED WITH THAT VIEWPOINT IN MIND THAT THIS IS OUR OUR FIRST LOOK THAT A LOT OF PEOPLE WILL HAVE IN THE CITY. IT'S AN ENTRY, IT'S A GATEWAY.

IT AND IT'S NEW, IT'S EXCITING.

SO I'M VERY PROUD TO TO HAVE THIS AND GLAD THAT THERE ARE PEOPLE LIKE JOHN PHELPS OUT THERE THAT CAN LOOK AT A NEED ON SUCH A GRAND SCALE AND HAVE THE ABILITY AND THE WILL AND RESOLVE TO ADDRESS IT.

[00:25:01]

AND IT'S UNIQUE.

IT'S GROUNDBREAKING IN THAT INDUSTRY.

I'M IN THE CONSTRUCTION INDUSTRY.

I KNOW THESE THINGS. AND THIS IS A NEW THING.

AND I HOPE IT'S A NEW NORMAL IN THE CONSTRUCTION INDUSTRY THAT WE DO HAVE TRAINED PEOPLE COMING OUT OF A FACILITY LIKE CRAFTMASTERS.

SO THAT'S ALL I CAN SAY OTHER THAN CONGRATULATIONS AND THANK YOU TO ALEX AND HIS TEAM AND TO THE CRAFT MASTER'S FOLKS.

I WILL ADD TO THAT WITH TOMMY'S HELP, TOMMY LUDWIG, MATT RIBITZKI, THE ATTORNEYS OVER AT TOSE RA REDEVELOPMENT WITH HELPING WITH THAT DREW PENNYWELL IN MY OFFICE.

IT'S BEEN A HUGE TEAM EFFORT.

OUR PLANNING DEVELOPMENT TEAM, OUR PUBLIC WORKS TEAM, LOOKING AT THE ENGINEERING AND COST OF ALL OF THESE THINGS.

IT IS A FULL TEAM EFFORT TO BE STANDING HERE IN FRONT OF YOU TODAY, HOPEFULLY GAIN APPROVAL ON THIS PROJECT.

AND A VERY FINE TEAM, I'D ADD THAT LOOKS GOOD IN EVERY LIGHT.

SO THERE'S NO OTHER QUESTIONS.

AND I SUPPOSE WE'RE READY FOR A MOTION.

I'D LIKE TO MAKE A MOTION TO APPROVE THE PERFORMANCE AGREEMENT WITH CRAFTMASTERS.

I'LL SECOND. OKAY.

I HAVE A MOTION BY SCOTT AND A SECOND BY RUSSELL.

ALL THOSE IN FAVOR? THAT MOTION PASSES BY A VERY STRONG, AFFIRMATIVE, UNANIMOUS VOTE.

THANK YOU, GENTLEMEN, VERY, VERY MUCH.

MR.. AND WE'RE NOT DONE.

NEXT ON OUR AGENDA FOR THIS EVENING IS ITEM THREE C TO CONSIDER APPROVAL OF A MEMORANDUM OF UNDERSTANDING FOR AUTHORIZATION FOR

[3.C. Consider approval of a Memorandum of Understanding for authorization for grading, stormwater infrastructure, and roadway construction for R.A. Development, Ltd., pursuant to an existing Chapter 380 and Economic Development and Performance Agreement. (Staff Presenter: Errick Thompson, Deputy Director Public Works - Engineering)]

GRADING STORMWATER INFRASTRUCTURE AND ROADWAY CONSTRUCTION FOR RA DEVELOPMENT LIMITED PURSUANT TO AN EXISTING CHAPTER 380 AND ECONOMIC DEVELOPMENT AND PERFORMANCE AGREEMENT.

THIS WILL BE PRESENTED BY ERIC THOMPSON, DEPUTY DIRECTOR OF PUBLIC WORKS.

GOOD AFTERNOON.

I'VE GOT A LITTLE BIT OF A PRESENTATION, BUT I WILL BE RELATIVELY QUICK TO SAVE AS MUCH TIME AS POSSIBLE FOR YOUR QUESTIONS.

WE'RE HERE BEFORE YOU THIS AFTERNOON TO SEEK ADDITIONAL AUTHORIZATION FOR RA DEVELOPMENT TO CONTINUE CONSTRUCTION ON LAKEWOOD DRIVE CONNECTED TO THE PROJECT YOU JUST WERE PRESENTED ON.

IT'D BE NICE TO FINISH THIS ROAD SO THAT THEY WOULD HAVE FULL ACCESS TO THEIR SITE.

THERE'S A LOT OF HISTORY IN THIS PRESENTATION, BUT I'LL I'LL TRY TO SHORTEN SOME OF THAT.

BUT IT REALLY IS IMPORTANT, I THINK, TO NOTE THAT THIS ALL STARTED WITH A MASTER PLAN, COMMUNITY POLICY THAT COUNCIL CREATED BACK IN 2020.

LATER, ABOUT A YEAR LATER, CHISHOLM SUMMIT CAME FORWARD AS THE FIRST MASTER PLAN COMMUNITY TO FOLLOW THAT POLICY.

IT WAS ECONOMIC ANALYSIS DONE THAT INDICATED THIS DEVELOPMENT WOULD ADD ABOUT A OVER $1 BILLION IN NEW TAX VALUE OVER 20 YEARS.

AND FOR EVERY DOLLAR THAT THE CITY PARTICIPATED IN THE COST, THE CITY WOULD RECEIVE A RETURN OF ABOUT $1.66.

FAST FORWARD TO JUNE OF 2021.

THIS BOARD AND THE CITY COUNCIL APPROVED AN ECONOMIC DEVELOPMENT AGREEMENT FOR THE CHISHOLM SUMMIT DEVELOPMENT . IN SEPTEMBER OF 21, YOU AGAIN, YOU APPROVED A RESOLUTION AUTHORIZING REIMBURSEMENT FOR DESIGN COSTS AND SANITARY SEWER AND ALSO A CONTRACT FOR KIMLEY-HORN TO PROVIDE SOME DESIGN REVIEW OF THAT PAVING AND SANITARY SEWER WORK.

OCTOBER 20TH, 21, YOU APPROVED THE DESIGN OF THE GRAVITY SEWER CONSTRUCTION.

THAT WAS PHASE ONE, OCTOBER OF 22.

APPROVAL FOR THE CIVIL PLANS FOR LAKEWOOD DRIVE WERE APPROVED BY COUNCIL AND YOU ALSO APPROVED THE LIMITED AUTHORIZATION.

SO THE GRADING AND STORMWATER INFRASTRUCTURE AND ROADWAY CONSTRUCTION COULD BEGIN FOR A PORTION OF THE PROJECT.

THERE WILL BE A COUPLE EXHIBITS THAT SHOW UP HERE IN A MINUTE, BUT WE BASICALLY PHASE THIS AUTHORIZATION BECAUSE WE NEEDED TO HAVE TIME FOR THE SOME OF THE SEWER DESIGN TO GET FURTHER ALONG SO WE KNOW EXACTLY WHERE THOSE THINGS NEEDED TO BE.

SO AUTHORIZATION WAS GIVEN INITIALLY FOR ONLY A PORTION OF THE WORK.

AND BASICALLY TODAY WE'RE ASKING FOR ALMOST THE REMAINING PORTION OF THE PROJECT TO BE AUTHORIZED.

KEY COMPONENTS OF THE DEVELOPMENT FOR CHISHOLM SUMMIT ARE ROUGHLY 1000 ACRES AT FULL BUILD OUT ABOUT 3000 RESIDENTIAL UNITS OVER TEN MILES OF TRAILS, OVER 100 ACRES OF PARKLAND.

AND THEN THERE WAS ALSO CONTEMPLATION FOR A BUSINESS PARK OF ABOUT 106 ACRES.

[00:30:09]

AND THE 380 AGREEMENT DEALT WITH HOW THE LAND WOULD BE ANNEXED INTO THE CITY.

IT GAVE THE DEVELOPER RESPONSIBILITY FOR COORDINATING DESIGN AND THEN CONSTRUCTING ALL THE PUBLIC INFRASTRUCTURE AND THEN OUTLINE HOW THE CITY WOULD REIMBURSE FOR LAKEWOOD DRIVE AND SANITARY SEWER IMPROVEMENTS.

OVERALL BUDGET FOR THE PROJECT IS ABOUT IS 25 MILLION.

THE LARGE MAJORITY OF THAT IS FOR LAKEWOOD DRIVE.

THE ROADWAY.

IT'S ABOUT 18 MILLION.

UH, WE ALSO HAVE A $3 MILLION CONTINGENCY ON THAT PROJECT.

THERE'S AN ALLOWANCE FOR LANDSCAPING AT 2.5 MILLION AND THEN STREET LIGHTING AND BURYING SOME OVERHEAD ELECTRIC LINES AT ANOTHER 3.5 MILLION.

THIS PICTURE ON THE RIGHT.

WAS MONTHS AGO.

THERE WAS A TON OF GRADING THAT NEEDED TO BE DONE TO LAY THE FOUNDATION FOR FOR THE ROADWAY THAT'S TAKING SHAPE NOW.

WE ALSO HAD SANITARY SEWER AS A MAJOR PART OF THE PROJECT IN THREE PHASES, REALLY.

SO THERE WAS A GRAVITY SEWER ON MOCKINGBIRD LANE TO 914 A.

THAT'S ALMOST COMPLETE.

WE'VE GOT A FEW ISSUES THAT WE'RE BUTTONING UP IN THE NEXT SEVERAL WEEKS, AND THEN PHASES TWO AND THREE INCLUDE LIFT STATIONS AND OR A LIFT STATION AND FORCE MAIN.

THAT DESIGN WILL LIKELY COME BEFORE YOU IN THE NEXT MONTH ISH, AND THEN CONSTRUCTION PROCUREMENT WOULD FOLLOW AND CONSTRUCT AND CONSTRUCTION LATER THIS SUMMER.

THE CITY IS ESTIMATED TO CONTRIBUTE ABOUT $8 MILLION FOR WATER FROM WATER AND SEWER BONDS FOR SANITARY SEWER IMPROVEMENTS.

SO, LAKEWOOD DRIVE, WE'VE GOT TO KIND OF COLOR CODED HERE.

THE GREEN IS REALLY IT'S THE 1.6, 1.7 MILE ROAD THAT'S UNDER CONSTRUCTION RIGHT NOW.

IT'LL BE A FOUR LANE DIVIDED ARTERIAL, AS MENTIONED BEFORE, IS ABOUT $18 MILLION CONSTRUCTION CONTRACT.

THIS IS FUNDED BY THE 4A ECONOMIC DEVELOPMENT CORPORATION.

PHASE ONE IS WHAT'S UNDER CONSTRUCTION NOW, BASICALLY FROM FM 1902 TO ABOUT 100FT NORTH OF COUNTY ROAD, 1016.

AND THEN PHASE THREE WOULD FOLLOW LATER.

PURPLE AND PURPLE IS SHOWN THE LAKEWOOD EXTENSION, WHICH IS A SEPARATE PROJECT, BUT IT WOULD TAKE THE PROJECT FROM ITS CURRENT END AT FM 1902 AND EXTEND IT THROUGH THE CHISHOLM TRAIL PARKWAY.

AS MENTIONED BEFORE, THE DEVELOPER IS CURRENTLY AUTHORIZED TO CONSTRUCT AND BE REIMBURSED FOR THE WORK BETWEEN FM 1902 AND JUST NORTH OF COUNTY ROAD 1016.

AND WE'RE TENTATIVELY LOOKING AT ABOUT A MARCH 24TH COMPLETION.

UH. AGAIN, I SAID THAT WE PHASED THE AUTHORIZATION BECAUSE THE LIFT STATION DESIGN PRIMARILY.

WELL, THAT'S THAT DESIGN IS IMMINENTLY COMPLETION OF THAT DESIGN IS IMMINENT.

SO AGAIN, WE ANTICIPATE BRINGING THAT BACK BEFORE YOU IN JULY OR NEXT MONTH.

SO THAT THAT PORTION CAN CONTINUE.

THAT BEING THE CASE, WE FEEL COMFORTABLE SUPPORTING THE DEVELOPER'S REQUEST TO EXTEND THE AUTHORIZATION.

AND AGAIN, THAT EXTENSION WOULD BE FROM THE CURRENT LIMIT AT 1016 FOR THE ADDITIONAL ROUGHLY, I THINK 1500 FEET TO COUNTY ROAD 1020. SO WE OBVIOUSLY, AGAIN, WOULD RECOMMEND THAT YOU APPROVE THE MODIFICATION OF THE AUTHORIZATION.

BE HAPPY TO TAKE ANY QUESTIONS.

DRIVING THE SIDE OUT TODAY.

I SEE THAT THERE ARE SEVERAL SKIPS AND UNCOMPLETED AREAS BEGINNING.

I BELIEVE OUR ORIGINAL AUTHORIZATION ALLOWED CONSTRUCTION TO UP CLOSE TO TEN, TEN, 16, BUT IT'S ACTUALLY STOPPED FARTHER NORTH THAN THERE PRIOR TO A ROUNDABOUT.

IT LOOKS LIKE TO BE BUILT IN THERE.

IS THERE A REASON CONNECTED TO WHAT WE'RE TAKING ACTION ON TONIGHT, WHY THAT HASN'T BEEN DONE OR? NOT CONNECTED TO WHAT YOU'RE TAKING ACTION ON TONIGHT.

THERE IS SOME SOME ACQUISITION THAT'S STILL IN PROGRESS.

I'M SORRY. ACQUISITION.

ACQUISITION. OKAY.

[00:35:01]

SO A SMALL PIECE OF RIGHT OF WAY THAT'S WORKING THROUGH ITS PROCESS.

AND IT'S A FAIRLY COMPLEX, A LOT OF MOVING PARTS, DIFFERENT UTILITIES, PRIVATE UTILITIES.

SO THE DEVELOPER'S BEEN FAIRLY DILIGENT ABOUT WORKING AS MUCH AS THEY CAN, WHERE THEY'RE WHERE THEY DON'T HAVE CONFLICT.

SO EVERYONE'S PUSHING HARD TO GET A NICE QUALITY PRODUCT DONE AS SOON AS POSSIBLE AND THEY WORK WHERE THEY WHERE THEY HAVE CLEARANCE TO WORK.

THIS AUTHORIZATION TONIGHT OR EXTENDING THE AUTHORIZATION WILL ALLOW THEM TO CONTINUE ON.

AND STILL THOSE PIECES THAT ARE PENDING, OTHER PROCESSES THAT WE NEED TO CONTINUE THROUGH THIS GIVES THEM OTHER WORK THAT THEY CAN CONTINUE ON UNTIL WE'RE CLEAR COMPLETELY TO GO BACK AND FILL THOSE GAPS IN.

OKAY. ANY OTHER QUESTIONS? SO ALL THE RIGHT OF WAY AND EVERYTHING IS IS IT PRETTY MUCH GOOD TO GO ON THE NEW PART? YES. OKAY.

BECAUSE I KNOW THE ONE YOU'RE TALKING ABOUT WAS THE EMINENT DOMAIN.

YES. OKAY.

THE QUESTIONS. OKAY.

THERE ARE NO OTHER QUESTIONS. THEN I WILL ENTERTAIN A MOTION ON ITEM THREE C.

MR. CHAIR, I MOVE TO.

MR. PRESIDENT. MOVE TO APPROVE ITEM THREE C.

SECOND, THE MOTION. MOTION BY RUSSELL.

SECOND BY ANDERSON TO APPROVE ALL THOSE IN FAVOR.

THAT MOTION PASSES BY UNANIMOUS VOTE.

THANK YOU, ALEX. NEXT UP, ITEM THREE D, TO CONSIDER APPROVAL OF A FIRST AMENDMENT TO PERFORMANCE AGREEMENT

[3.D. Consider approval of a First Amendment to the Performance Agreement between the Burleson 4A Economic Development Corporation and 2525 FTG - Tulsa, LLC for a development located at 700, 708, 712, 714, 716, and 720 SW Wilshire Blvd in Burleson, Texas. (Staff Presenter: Alex Philips, Economic Development Director)]

BETWEEN BURLESON 4A ECONOMIC DEVELOPMENT CORPORATION AND 2525 FTG TULSA, LLC FOR DEVELOPMENT LOCATED AT 700, 708, 712, 714, 716 AND 720 SOUTHWEST WILSHIRE BOULEVARD, AKA PROJECT FACELIFT.

THIS WILL BE PRESENTED BY ONCE AGAIN MR. ALEX FORBES. YES, I FEEL LIKE THIS THIS PROJECT NAME IS THE MOST APPROPRIATE FOR THIS PARTICULAR PROJECT.

SO THIS IS THE CORNER OF SUMMER CREST AND WILTSHIRE.

IT'S APPROXIMATELY A TWO ACRE SITE.

IT HAS FOUR LOTS THAT HAVE BEEN VACANT FOR OVER A YEAR.

THE DEVELOPERS ARE GOING TO BE DOING ALL THE ENVIRONMENTAL AND DEMO OF THE SITE.

THAT'S THE OLD GAS STATION, THE OLD SONIC AND THE OFFICE BUILDING WHERE DR.

ERICKSON'S PRACTICE WAS FOR YEARS.

DEVELOPER IS PROPOSING THREE NEW TO MARKET SALES TAX USERS AND A PRIMARY JOB TENANT.

IT'S ACTUALLY BEEN A LITTLE CHANGED WITH THAT FOURTH USER.

IT'S ACTUALLY GOING TO BE ANOTHER SALES TAX USER, WHICH IS TO THE BENEFIT TO BOTH PARTIES.

DEVELOPERS, LIKE I SAID, PROPOSING THE THREE MARKET SALES TAX USERS.

THREE OF THEM HAVE BEEN IDENTIFIED.

FATBURGER, IT'LL BE THE SIXTH LOCATION.

COOLGREENS, IT'S A SALAD CONCEPT AND HAWAIIAN BROS., THAT WILL BE ACTUALLY ON THE CORNER.

THE SITE IMPROVEMENTS WILL INCLUDE THE FOLLOWING ACCESS.

THEY'RE IMPROVING THE ACCESS.

YOU KNOW, IT'S KIND OF A RUNWAY OUT THERE RIGHT NOW ONTO WILSHIRE.

THEY'LL BE SHARED ACCESS DOWN CLOSER TO THE BANK.

ENVIRONMENTAL CLEANUP WITH THE TANKS BEING PULLED FROM THE SITE.

DRAINAGE IMPROVEMENTS, ESTHETICS.

I MEAN, WE CAN ALL AGREE THAT IT WILL IMPROVE THE ESTHETICS OF THE CORNER AND HAVE IT NEW TO MARKET USERS.

THE APPROVED AGREEMENT THAT COUNCIL PREVIOUSLY APPROVED, THE DEVELOPER RECEIVES 425,000 UPON SUBSTANTIAL COMPLETION OF THE DEVELOPMENT AS A REIMBURSEMENT OF DEVELOPER RELATED EXPENSES RELATED TO THOSE SITE IMPROVEMENTS THAT I JUST MENTIONED.

AND THEN ONCE THEY GET THEIR FOURTH CO CERTIFICATE OF OCCUPANCY ON THE TENANT, THEY WOULD RECEIVE ANOTHER 425,000.

SO AGAIN, THESE ARE THE USERS.

ATHLETICO SINCE I PUT THE PRESENTATION IN THE PACKET TOO TODAY, ATHLETICO IS NOT THAT FOURTH USER.

IT'LL BE SOMEBODY ELSE IN THE FUTURE.

THAT'S A PHYSICAL THERAPY OFFICE.

IT WILL BE A SALES TAX USER THAT GOES INTO THAT FOURTH SPOT.

BUT AS YOU CAN SEE, HAWAIIAN BROS, THEY'VE BEEN RAPIDLY GROWING.

IT'S ACTUALLY THEY'LL BE THEIR 12TH LOCATION IN DFW.

FATBURGER SIXTH LOCATION IN DFW.

COOLGREEN'S, FOURTH LOCATION IN DFW.

I THINK WHEN YOU START TO SEE, YOU KNOW, WE'RE IN THE 10TH LOCATION OR LOWER, YOU START TO SEE HOW VIBRANT OUR MARKET IS FOR THESE NEW USES.

SO THIS IS THE PERFORMER THAT WAS APPROVED BY COUNCIL IN FEBRUARY EARLIER THIS YEAR, THAT 850,000 FOR THE SITE IMPROVEMENTS, TEN YEAR RETURN, 111%. 20 YEAR RETURN WAS OVER 300%.

SO WHAT WE'RE ASKING FOR IN THIS AMENDMENT IS THE TIA CAME BACK WITH AN ADDITIONAL $447,000 IN TRAFFIC CONCERNS AND TRAFFIC IMPROVEMENTS THAT NEEDED TO BE DONE TO THAT INTERSECTION IN AND AROUND THE SITE.

[00:40:01]

THESE IMPROVEMENTS WOULD AID IN THE DEVELOPMENT OF THE SITE, BUT IT WOULD ALSO HELP AS FUTURE SUMMER CREST DEVELOPMENTS HAPPEN EITHER OVER ON CAPTAIN D'S OR DOWN THE ROAD BY THE BRICK OR ANYWHERE ELSE ON SUMMERCREST.

THE DEVELOPER WOULD CONSTRUCT ALL THE ADDITIONAL SIDE IMPROVEMENTS AND AFTER ACCEPTANCE, THE CITY AFTER THE IMPROVEMENTS HAVE BEEN ACCEPTED BY THE CITY, THE EDC WOULD PROVIDE A REIMBURSEMENT OF HALF OF THE $223,560.

THIS AMENDMENT WOULD ADD THE ADDITIONAL INCENTIVE FOR INFRASTRUCTURE IMPROVEMENTS, AND THERE'S NO OTHER DATE CHANGES IN THE PERFORMANCE AGREEMENT THAT WOULD BE THERE READY TO ROCK AND ROLL AND GO.

SO THIS IS THE NEW PROFORMA LOOKING AT A TEN YEAR RETURN, 67% AND A 20 YEAR RETURN BEING 245%.

SO TONIGHT, THE OPTIONS APPROVED THE PROPOSED AMENDMENT PERFORMANCE AGREEMENT TO INCLUDE THE ADDITIONAL SIDE IMPROVEMENTS OR DENY THE PROPOSED AMENDED PERFORMANCE AGREEMENT TO INCLUDE THE ADDITIONAL SIDE IMPROVEMENTS.

OUR RECOMMENDATION IS TO APPROVE IT.

I THINK THE THE ADDED INCENTIVE THAT WE'RE PUTTING IN THERE, IT'S JUST GOING TO ADD TO THE DEVELOPMENT TO MAKE IT A BETTER DEVELOPMENT IN THE WHOLE AND SHARING THOSE COSTS FOR NOT JUST THEIR SIDE, THEIR DEVELOPMENT ITSELF, BUT ALSO FUTURE DEVELOPMENTS DOWN THE ROAD.

HERE TO ANSWER ANY QUESTIONS.

ALL RIGHT. ANY QUESTIONS MEMBERS? NO QUESTIONS. EXCEPT THANK YOU FOR GETTING RID OF THAT EYESORE IN BURLESON THAT'S BEEN THERE FOR YEARS AND YEARS.

IT'S. I CAN'T APPROVE THIS FAST ENOUGH.

IT'S GOOD WHEN YOU HAVE GOOD PARTNERS ON THE OTHER SIDE WITH RETAIL CONNECTION KAUFMAN CONSULTANTS IN THIS TULSA GROUP THAT WE'RE WORKING WITH ON THIS PROJECT.

SO THEY'VE BEEN GOOD.

MY RECOLLECTION OF THE ADDITIONAL COST IS BECAUSE OF TXDOT REQUIREMENTS FOR THE ENTRY IS THAT THEY'RE GOING TO HAVE DSL LANE THE SHARED ACCESS OFF OF 174 ALSO RIGHT TURN LANE ON SUMMERCREST.

THAT'S GOING TO BE REQUIRED AS WELL.

OH, OKAY. SO IS IT GOING TO REQUIRE A DECELERATION LANE ON WILSHIRE OR ARE WE PAST THAT? YEAH, DECEL LANE ON WILSHIRE TO GET INTO THEIR DEVELOPMENT.

YES. SO THERE'S A DSL ON WILSHIRE, A RIGHT TURN ON SUMMERCREST AND A DRIVEWAY.

YES. TXDOT. HAVE THEY BLESSED THIS ALREADY OR ARE THEY? I BELIEVE SO. OKAY.

SO THE FINAL ITERATION OF THE AGREEMENT IS GOING TO TAKE US FROM TWO $425,000 REIMBURSEMENTS OR ACTUALLY REIMBURSEMENT THAN A PREMIUM THAN AN ADDITIONAL 223 K.

YES, SIR. CORRECT.

YES, SIR. I'M STILL ON BOARD.

SOUNDS GOOD TO ME.

I THINK THE RIGHT TURN ON SUMMERCREST WILL HELP A LOT, TOO.

I THINK IT WILL, TOO. BIG TIME.

SO. ALL RIGHT.

WE AGREED. OKAY, WITH THAT, IF THERE'S NO FURTHER QUESTIONS, I'LL ENTERTAIN A MOTION.

I'LL MAKE A MOTION TO APPROVE.

THOUGHT YOU MIGHT. YEAH.

YEAH, I'LL SECOND THE MOTION.

ALL RIGHT. I HAVE A MOTION BY ANDERSON, SECOND BY RUSSELL TO APPROVE.

THOSE IN FAVOR. AND THAT MOTION PASSES WITH UNANIMOUS VOTE.

THANKS, ALEX. GREAT, GREAT PROJECT.

GLAD TO SEE YOU, SIR. ALL RIGHT.

THAT BRINGS US TO ITEM THREE E TO CONSIDER APPROVAL OF A FIRST AMENDMENT TO THE CHAPTER 380 ECONOMIC DEVELOPMENT AND

[3.E. Consider approval of a First Amendment to the Chapter 380 Economic Development and Performance Agreement between the City of Burleson, the Burleson 4A Economic Development Corporation, and Yourang, LLC. (Staff Presenter: Alex Philips, Economic Development Director)]

PERFORMANCE AGREEMENT BETWEEN THE CITY OF BURLESON, THE BURLESON 4A ECONOMIC DEVELOPMENT CORPORATION AND YOURANG, LLC.

THIS WILL ALSO BE PRESENTED BY ALEX PHILLIPS.

APPRECIATE IT. THANK YOU BOARD AND BOARD MEMBERS.

STATION 330, IT'S THE RESTAURANT UNDER CONSTRUCTION JUST SOUTH OF EAGLE'S POINT ON MAIN STREET.

IT IS A RAILROAD THEMED RESTAURANT FEATURING FAMILY FRIENDLY MENU, FUN AND ENTERTAINMENT FOR ALL AGES.

THE PRIMARY FOCUS IS GOING TO BE ON STEAK OFFERINGS.

THE BUILDING'S A LITTLE BIT OVER 11,000FT².

IT WILL SEAT APPROXIMATELY 300 CUSTOMERS.

IT'S CUSTOM BUILT PLAY AREA FOR CHILDREN.

THEY'LL ALSO HAVE FLATCAR STAGE FOR LIVE MUSIC.

THEN A LITTLE BIT OVER $3 MILLION IN CAPITAL INVESTMENT.

THEY ESTIMATE THEIR YEAR ONE REVENUE TO BE $6 MILLION.