Frisco to save $80M in incentives with new agreements for The Gate development

Frisco recently approved new incentive agreements and a master development agreement for The Gate development. (Rendering courtesy Invest Group Overseas)
Frisco recently approved new incentive agreements and a master development agreement for The Gate development. (Rendering courtesy Invest Group Overseas)

Frisco recently approved new incentive agreements and a master development agreement for The Gate development. (Rendering courtesy Invest Group Overseas)

New agreements for The Gate development along the Dallas North Tollway will save Frisco nearly $80 million in incentive grants compared to previous contracts approved in 2016.

Amended performance agreements and a master development agreement were approved by Frisco Community Development Corp. on Oct. 15, Frisco City Council on Oct. 20 and Frisco Economic Development Corp. on Oct. 21. The new master development agreement reduces the total capped grants of $103 million from the 2016 contracts to an estimated $19.4 million over 25 years. A separate Chapter 380 agreement would provide a capped grant of $3.8 million for the developer of a mixed-use facility currently under construction as part of the project.

The Gate development at John Hickman Road and the Dallas North Tollway is owned by the Dubai-based Invest Group Overseas. The $1 billion development is slated to include several townhome, condominium, apartment, office and hotel projects. The first project to break ground was the multifamily Domain At The Gate complex, which opened in February 2019. In addition to other urban living units planned for the area, Dallas-based JMJ Development announced a 28-story building containing a luxury hotel and condos that will be the "tallest building in Frisco."

Since the original agreements were approved, IGO sold one lot in the development to John Hickman LLC. That company is currently constructing a 30,600-square-foot restaurant/retail facility that will be two stories and include an underground parking garage. As part of the Chapter 380 agreement approved by the city, John Hickman LLC is expected to complete construction on the project by May 2022.

Frisco EDC President Ron Patterson told council Oct. 20 the city’s 2016 agreements with IGO were set to expire at the end of this year and that there were various provisions from the agreements that had not been met. When IGO asked to amend those agreements, Frisco proposed changes, Patterson said.


“We feel like that because of the fact that certain marks weren't quite met yet, that [when IGO] came to us and wanted to ask for some changes, that it was reasonable that we both have some give on this,” Patterson said.

Frisco Mayor Jeff Cheney said the 2016 incentives were put in place before the city adopted its phasing strategy.

“One of the things that council did a couple years ago is to try to correct issues like this, where you have a planned development that includes residential components in it,” Cheney said. “We were getting frustration from our residents that the residential [development] would be built, and then the other things wouldn't follow. And this was kind of Exhibit A.”

While the 2016 agreements for The Gate offered incentives on the entire project, Cheney explained the new agreements are in line with Frisco’s current approach of not giving incentives to residential developments.

“By being creative in this approach to parcel [incentives] out, I think it's a clearer and faster path to building out the desired uses that we want to see here,” Cheney said. “[It also sends] the message that when we do negotiate with developers [on] incentive packages that we expect them to deliver on time, and if you don't, that there are economic consequences to that.”

Patterson also confirmed for council that no incentives have been paid out under the 2016 agreements.
By William C. Wadsack
William C. Wadsack is editor of the Frisco edition of Community Impact Newspaper. He previously served as managing editor of several daily and weekly publications in North Texas and his native state of Louisiana before joining Community Impact Newspaper in 2019.


MOST RECENT

Restaurants, bars and some other businesses in North Texas will face a familiar slate of heightened restrictions after the region exceeded the Gov. Greg Abbott’s threshold for COVID-19 hospitalizations. (Courtesy Adobe Stock)
Bar closures, tighter business restrictions triggered in North Texas by COVID-19 hospitalizations

Restaurants, bars and many other businesses will face heightened restrictions after North Texas exceeded the governor’s threshold for COVID-19 hospitalizations.

Voters can cast ballots in person until Dec. 4 for early voting or vote on election day, Dec. 8. (Liesbeth Powers/Community Impact Newspaper)
Dec. 4 is last day for Frisco voters to cast early ballots in City Council runoff

Dec. 4 is the last day for Frisco voters to join the 2,000-plus people who have voted in the Dec. 8 City Council runoff since the beginning of early voting.

The number of homes listed for sale decreased in Frisco in October as compared to the same period in 2019. (Community Impact staff)
DATA: Here are the latest real estate trends in Frisco

The number of homes listed for sale decreased in Frisco in October as compared to the same period in 2019.

This shows the conceptual alignments for US 380 in Denton County. (Courtesy Texas Department of Transportation)
TxDOT releases 5 potential alignment options for US 380 in Denton County

TxDOT is studying five conceptual alignments for the project. The study area includes the area north of US 380; it includes the cities of Denton, Providence Village, Frisco, Little Elm, Aubrey, Krugerville and Celina and the towns of Prosper and Cross Roads.

Texas Gov. Greg Abbott announced Dec. 2 that the Centers for Disease Control and Prevention has allotted 1.4 million doses of the COVID-19 vaccines to the state of Texas. (Courtesy Adobe Stock)
First allotment of COVID-19 vaccinations expected to arrive in Texas in mid-December

About 1.4 million doses of the COVID-19 vaccines have been allotted to the state of Texas and will arrive the week of Dec. 14.

Meadowcreek is Frisco's featured neighborhood for December. (William C. Wadsack/Community Impact Newspaper)
Meadowcreek is this month's featured neighborhood in Frisco

Meadowcreek, a 189-home community, is located north of Main Street and just to the east of FM 423.

The portion of Hall Office Park to be redeveloped is at the corner of Warren and Gaylord parkways. (Courtesy city of Frisco)
Frisco approves tax reinvestment zone to help fund parking garage, park as Hall Office Park redevelops

Frisco will participate in improvements planned as part of a Hall Office Park project that could more than triple the property’s value to nearly $2.2 billion over the next 20-30 years.

The new Children's Advocacy Center of Collin County facility is expected to open in fall 2020. (Courtesy Children's Advocacy Center of Collin County)
Children's Advocacy Center of Collin County to open new facility in McKinney

The need for the 40,000-square-foot facility comes from the projection that the number of children in the county will triple over the next 25 years.

Located at the south end of Teel Parkway, the 1135 Hike & Bike Trail will now be part of Iron Horse Trail. (William C. Wadsack/Community Impact Newspaper)
Frisco approves names for 3 neighborhood parks, 2 connected trails

Frisco City Council approved names for three neighborhood parks and two city trails during its Dec. 1 meeting.

The Texas Higher Education Coordinating Board has launched a campaign to address declining college enrollment numbers across the state since the pandemic started. (Courtesy Pexels)
Texas Higher Education Coordinating Board launches campaign to boost college enrollment

The decline in college enrollment across the state of Texas has prompted several agencies to partner up and create online resources for students and counselors.

Frisco ISD is slated to spend roughly $822,000 on blue strobe lights to enhance security systems. (Elizabeth Ucles/Community Impact Newspaper)
Frisco ISD to install blue strobe lights as security enhancement

Upon the request of campus administrators, Frisco ISD is planning to spend approximately $822,000 to install blue strobe lights on each district campus to visually alert students and faculty in lockdown situations.

As of Nov. 30, patients confirmed to have COVID-19 filled 16.1% of hospital beds in Trauma Service Area E, which includes Collin, Denton, Tarrant and Dallas counties among others. (Courtesy Adobe Stock)
North Texas hovers above key COVID-19 hospitalization threshold as further restrictions loom

North Texas businesses could face additional restrictions—including the closure of some bars—if area hospitals do not see a reversal in the number of COVID-19 patients within a matter of days.