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 And Job Creation Grant Agreement With AmerisourceBergen Specialty Group, Inc.
Body
BACKGROUND:
AmerisourceBergen Specialty Group currently occupies multiple locations within the Metroplex. Due to its extensive growth and desire to consolidate its operations into one location, the company wishes to contract with Billingsley Development Corporation to construct a build-to-suit office campus on 30+ acres at the northwest corner of FM 544/Parker Road and Plano Parkway in Austin Ranch. 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 at an investment value of $75 million. Phase II will consist of 150,000 square feet at 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 obligated to construct or occupy Phase II of the project, it is AmerisourceBergen's plan to move forward with Phase II as proposed, as this aligns with the termination of one of the company's current leases which houses hundreds of employees in another city, and contributes to the company's ultimate goal of bringing its employees together at a single site.
FINAN...
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