STRATEGIC PRIORITY: Growing
AGENDA DATE: June 11, 2025
COUNCIL DISTRICT(S): 4
DEPARTMENT: Office of Economic Development
EXECUTIVE: Robin Bentley
______________________________________________________________________
SUBJECT
Title
Authorize amendments to Resolution No. 24-0356 previously approved on February 28, 2024 authorizing a tax increment financing (“TIF”) development agreement and all other necessary documents with UCR Development Services LLC and/or its affiliates (“Developer”) in an amount not to exceed $1,778,000.00 (“TIF Subsidy”), related to the Lancaster-Corning Retail Development Project (“Project”) on property currently addressed as 3011 through 3039 South Lancaster Road (“Property”) to: (1) amend the City’s economic development incentive funding from a TIF development agreement sourced from the TOD TIF District Fund to a Chapter 380 economic development grant agreement (“Grant”) sourced from the ECO (I) Fund (2017 General Obligation Bond Fund); (21) increase the City’s economic development incentive TIF Subsidy by $817,901.00 from an amount not to exceed $1,778,000.00 to an amount not to exceed $2,595,901.00; (32) amend the minimum project requirements by (a) reducing the required minimum gross square footage from 11,000 square feet to 4,900 square feet, (b) adding specific requirements for the new ground-up construction of two build-to-suit buildings (core and shell only) specifically including a minimum 2,900 gross square foot build-to-suit building for Frost Bank (“Building A”) and a minimum 2,000 gross square foot build-to-suit building for Wingfield’s Breakfast and Burger (“Building B”); (43) reduce Developer’s required minimum investment from $4,000,000.00 to $2,700,000.00; (54) extend Developer’s deadline to close on the acquisition of the Property from June 30, 2024 to December 31, 2025; (65) extend Developer’s deadline to replat the Property, if necessary, and obtain a building permit for the Project from December 31, 2025 to December 31, 2026; (76) extend Developer’s deadline to complete construction of the minimum project requirements from December 31, 2027 to December 31, 2028; (87) clarify that Building A and Building B shall be completed by Developer to a ready-for-tenant-finish-out condition by the December 31, 2028 deadline instead of to an occupiable condition, and in consideration; (98) increase the Developer’s good faith effort goal for participation by certified Minority/Women-Owned Business Enterprises (“M/WBEs”) for all hard construction expenditures from 40% to 50%; (109) add a good faith effort goal of 50% city of Dallas residents hired for the opening of Frost Bank and the opening of Wingfield’s Breakfast and Burger; and (1110) add a requirement that Developer execute a minimum 10-year lease to secure Wingfield’s Breakfast and Burger as the tenant for Building B, in accordance with the City’s Economic Development Incentive Policy - Not to exceed $817,901.00 - Financing: ECO (I) Fund (2017 General Obligation Bond Fund) TOD TIF District Fund (subject to annual appropriations from tax increments)
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BACKGROUND
On May 26, 2022, the City issued a Request for Proposals (RFP) for commercial development of approximately 1.5 acres of vacant City-owned property addressed as 3011-3039 South Lancaster Road generally located at the northwest corner of South Lancaster Road and East Corning Avenue ("Property").
On October 26, 2022, by Council Resolution No. 22-1638, pursuant to the RFP, City Council authorized the selection of UCR Development Services LLC and/or its affiliates ("Developer"), proposer of the most advantageous proposal of three.
On October 26, 2022, by Council Resolution No. 22-1639, City Council authorized execution of a right-of-entry agreement and negotiation of a development agreement with the Developer.
On February 28, 2024, by Council Resolution No. 24-0356, City Council authorized a TIF development agreement with Developer in an amount not to exceed $1,778,000 (“TIF Subsidy”), payable from current and future TOD TIF District funds, in consideration of the Lancaster-Corning Retail Development Project.
The Developer has not yet executed the development agreement initially authorized by Resolution No. 24-0356 in February 2024. However, the Developer has been acting in good faith to navigate substantive challenges during the predevelopment phase, including multiple revisions to the conceptual site plan to accommodate prospective tenant requests and the departure of a national credit tenant, which posed difficulties in securing strong financing for the Project.
In the past two months, the Developer has successfully restructured the Project, including sources, uses, site layout, and commitments from two anchor tenants. As a result, the Developer is ready to move forward to deliver the Project, assuming City Council authorization of the amendments listed in this agenda item, including (1) increasing the City’s economic development incentive TIF Subsidy by $817,901.00 from an amount not to exceed $1,778,000.00 to an amount not to exceed $2,595,901.00, and (2) changing the City’s economic development incentive funding from a TIF Subsidy sourced from the TOD TIF District Fund to a Chapter 380 economic development grant (“Grant”) sourced from the Council District 4 allocation of Proposition I (Economic Development/Housing) 2017 General Obligation Bond Funds.
As restructured, the Project will consist of:
• Developer’s acquisition of the Property from the City at the “as is” fair market value
• Developer’s design and new ground-up construction of two (2) free-standing buildings totaling approximately 5,051 gross square feet, including:
• Building A: approximately 2,959 gross square foot build-to-suit building (core and shell only) with a drive-through specifically for Frost Bank
• Building B: approximately 2,092 gross square foot build-to-suit building (core and shell only) with a drive-through specifically for Wingfield’s Breakfast and Burger
• Developer’s design and construction of all site improvements including grading, paving, utilities, parking improvements, irrigation, landscaping, hardscaping, lighting, and perimeter streetscape improvements.
The total cost of the restructured Project (including tenant improvement costs and furniture/fixture/equipment/technology/systems costs of Frost Bank and Wingfield’s Breakfast and Burger) is an estimated $8,387,489.
ESTIMATED SCHEDULE OF PROJECT
Begin Construction December 2026
Complete Construction June 2028
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On October 26, 2022, the City Council authorized the selection of UCR Development Services LLC and/or its affiliates ("Developer"), proposer of the most advantageous proposal of three, pursuant to the RFP[,] by Council Resolution No. 22-1638.
On October 26, 2022, the City Council authorized execution of a right-of-entry agreement and negotiation of a development agreement with the Developer by Resolution No. 22-1639.
On February 28, 2024, the City Council authorized a TIF development agreement with Developer in an amount not to exceed $1,778,000 (“TIF Subsidy”), payable from current and future TOD TIF District funds, in consideration of the Lancaster-Corning Retail Development Project by Resolution No. 24-0356.
The Economic Development Committee was briefed by memorandum regarding this matter on June 2, 2025.
The TOD TIF District Board of Directors is scheduled to review this matter on June 10, 2025.
FISCAL INFORMATION
|
Fund |
FY 2025 |
FY 2026 |
Future Years |
|
ECO (I) Fund (2017 General Obligation Bond Fund) TOD TIF District Fund |
$0.00 |
$0.00 |
$2,595,901.00 $817,901.00 |
DEVELOPER
UCR Development Services LLC
Don Bouvier, Managing Member
MAP
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