CC MEETING: October 18, 2016
DATE: October 11, 2016
TO: Leonard Martin, City Manager
FROM: Andrea Roy, Economic Development Manager
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Tax Incentive Agreement With Billingsley Development Corporation At The Northwest Corner Of Parker Road And Plano Parkway.
Body
BACKGROUND:
Billingsley Development Corporation has requested a tax incentive and reimbursement of building permit fees for an approximately 450,000 square foot regional office facility on approximately 30+ acres at the northwest corner of FM 544/Parker Road and Plano Parkway in Austin Ranch for the purpose of relocating AmerisourceBergen Specialty Group's regional offices to this site.
AmerisourceBergen Specialty Group currently occupies multiple locations within the Metroplex, and due to its extensive growth and desire to consolidate its operations into one location, the company wishes to contract with Billingsley to construct a build-to-suit office campus to ultimately house approximately 3,000 employees. AmerisourceBergen is a global pharmaceutical sourcing and distribution services company with over $135 billion in annual sales. The company is currently ranked #12 on the Fortune 500 list.
Billingsley will construct AmerisourceBergen's office complex in two phases. Phase I will consist of 300,000 square feet with an investment value of $75 million. Phase II will consist of 150,000 square feet of office with an investment value of $38 million. Development of Phase I will commence immediately, while Phase II will commence once notice is provided to Billingsley by AmerisourceBergen (by July 1, 2019) in accordance with the letter of intent. It is the intention of AmerisourceBergen to occupy Phase I upon its completion with a 12.5-year lease, and then occupy Phase II two to three years later with a 10-year lease so that both leases would co-terminate. While neither Billingsley nor AmerisourceBergen is contractually oblig...
Click here for full text