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 the senior reporter for the Plano and Richardson editions 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

Hot Body Yoga in Frisco is now under new ownership. (Courtesy Hot Body Yoga)
Hot Body Yoga under new ownership in Frisco

The brother and sister said their goal is to build a yoga community where everyone can feel comfortable entering the studio, regardless of their abilities.

Crumbl Cookies offers over 120 rotating cookie flavors. (Courtesy Crumbl Cookies)
Crumbl Cookies to open in Plano; McKinney trash pickup rates to rise and more DFW-area news

Read the latest business and community news form the Dallas-Fort Worth area.

map
Frisco City Council gets first look at findings from regional transit studies

Michael Morris, director of transportation with the North Central Texas Council of Governments, gave a virtual presentation during the council’s work session on transit needs for the city as well as the possibility of passenger rail service.

rendering of project
Frisco City Council again tables rezoning proposal for $1B development called The Link

Frisco City Council members heard an update May 4 about the proposed rezoning for a 239-acre project known as The Link.

The Omni PGA Frisco Resort will open in spring 2023. (Rendering courtesy Omni Hotels & Resorts)
GALLERY: Groundbreaking kicks off construction on Omni PGA Frisco Resort

The development was delayed by about a year due to the hit the hotel industry took from the COVID-19 pandemic, but is moving forward now.

restaurant table
Jakes Burgers and Beer locations in North Texas, including in Frisco, under new ownership

The restaurant is known for its locally sourced beef burgers and selection of local brews and Texas spirits.

Construction is complete at The Offices Three at Frisco Station. (Courtesy VanTrust Real Estate)
Construction completed on The Offices Three at Frisco Station

The Offices Three at Frisco Station features 210,000 square feet of office space and is the third of five planned buildings for the office district. 

Unofficial election results on May 1 show incumbent John Keating defeated challenger JP Schade by 75.8% to 24.2% in the Frisco City Council Place 1 race. (Sandra Sadek/Community Impact Newspaper)
Keating defeats Schade, keeps Frisco City Council Place 1 seat

Unofficial election results on May 1 show incumbent John Keating defeated challenger JP Schade by 75.8% to 24.2% in the Frisco City Council Place 1 race.

Unofficial election results on May 1 show Jennifer White, with 36.9% of votes, and Angelia Pelham, with 27.3% of votes, will face each other in a runoff election. (Community Impact Newspaper staff)
White, Pelham heading to runoff election for Place 3 on Frisco City Council

Unofficial election results on May 1 show Jennifer White, with 36.9% of votes, and Angelia Pelham, with 27.3% of votes, will face each other in a runoff election.

Unofficial election results on May 1 show incumbent René Archambault defeated challenger Evelyn Brooks by 58% to 42% in the Frisco ISD Place 7 race. (Ali Linan/Community Impact Newspaper)
Archambault defeats Brooks, keeps Frisco ISD Place 7 seat

Unofficial election results on May 1 show incumbent René Archambault defeated challenger Evelyn Brooks by 58% to 42% in the Frisco ISD Place 7 race.

Three incumbents faced challengers vying for seats on the Collin College board of trustees in the May 1 election. (Courtesy Collin College)
Incumbents defeat challengers in elections for Collin College seats

Unofficial election results on May 1 show the incumbent candidates defeated their challengers in the races for Collin College board of trustees seats.

Three incumbents face challengers vying for seats on the Collin College board of trustees in the May 1 election. Polls are open from 7 a.m. to 7 p.m. (Courtesy Collin College)
3 incumbents face challengers in elections for Collin College board of trustees seats

Three incumbents face challengers vying for seats on the Collin College board of trustees in the May 1 election. Polls are open from 7 a.m. to 7 p.m.