Harbor Point Bass Pro is FOR SALE

[MainStreet]

I opened my mail today and discovered a real estate flyer from Marcus & Millichap advertising that Harbor Point in Garland, Texas is for sale in the amount of $29,175,000.00. The add continues to read 10% Return and Attractive Debt Available.

Here is the website of the real estate agents: www.vitorinolevygroup.com

Bass Pro is featured on their homepage.

Here is the link to the offering / marketing package:
http://www.vitorinolevygroup.com/***...rbor_point.pdf

In the marketing package on page 5, there is a footnote about the relationship with this development and the City. It reads ...

(1b) Bass Pro building and land was sold to the city for $10 in exchange for the Economic Incentive Plan, the ad valorem tax rebate and
sales tax remittance. The city, in turn, leased the property back to the developer, as a sale leaseback, for 20 years for $100 annually.
Currently the city owns the building and land, but the developer collects the $800,000 annual rent by paying only $100 to the city. At the
end of the 20 years fee simple interest of the Bass Pro building and land reverts back to the developer.

Page 12 gives more details about the incentives.

ABOUT THE DEVELOPER INCENTIVE AGREEMENT:

The city of Garland purchased the designated 13.92 acres of land that is located in the central portion of the site, which consists of the concrete surface parking area for the Bass Pro
Shops store and the five lakefront restaurant pad sites. An additional ±2.57 acres located between the strip retail building and the lakefront pad sites, was formerly owned by the city of Garland and designated as a hotel site. The city has finalized a deal with Atlantic Hotel Group for development of a 102-room Holiday Inn Express. The city sold the 2.57 acre parcel to Atlantic Hotel Group for $840,000 on June 11, 2008. This was confirmed by the city of Garland
Assistant City Manager. According to the Economic Incentive Agreement, the city agrees to maintain all public areas at its sole cost. As such, there is no significant common area maintenance expense to the developer/ownership.

The current owner, exercised on option with the city of Garland to sell the Bass Pro Shops property (122,989 SF building on a 4.983 acre site), to the city for $100, and lease back the property for $100 per year. Hence, they own the leasehold (sandwich) position in the Bass Pro Shops property. Also, the city’s ownership of the Bass Pro Shops property effectively removes that property (land and improvements) from the property tax rolls, according to the
Garland Assistant City Manager.

ABOUT THE ECONOMIC INCENTIVE PROGRAM PAYMENTS:
The EIP Payments are the Sales Tax Remittance and the Ad Valorem Tax Rebate, collectively, which relate to Harbor Point, excluding the public property which includes the Bass Pro Shop land and building and publicly owned common areas and streets. Beginning on the Bass Pro Shop opening date of November 15, 2006 and continuing on the 75th day after the end of
each succeeding calendar quarter, the city of Garland shall make a payment to the developer in the amount not less than such portion of the sales taxes received by the city of Garland from taxable sales that occur on the developer's property (not including sales that occur on the public property) during the immediately preceding calendar quarter as may be remitted to the city of Garland by the State of Texas during the immediately preceding calendar quarter (the sales tax remittance). The maximum amount of sales tax remittance payable by the city of Garland pursuant to this agreement is fourteen million eight hundred eighty thousand nine hundred dollars ($14,880,900).

Beginning on the Bass Pro Shop opening date of November 15, 2006 and continuing on the 75th day after the end of each succeeding ad valorem tax year (ending January 31st), the city of Garland shall make an additional payment to the developer (the ad valorem tax rebate) in an amount not less than the increase in ad valorem taxes received by the city of Garland with respect to the developer's property as compared to the ad valorem taxes received by the city of
Garland with respect to the developer's property for the ad valorem tax year preceding the ad valorem tax year in which the Bass Pro Shop opening date occurs (the ad valorem tax year preceding the ad valorem tax year in which the Bass Pro opening date occurs being hereinafter referred to as, the "Base Ad Valorem Tax Year"). The maximum amount of the ad valorem tax rebate payable to the city of Garland pursuant to the agreement is seven million one hundred
four thousand nine hundred eighty-two ($7,104,982). The city of Garland shall have no further obligations to make EIP payments after the 20th anniversary of the Bass Pro opening date.

Didn't the voters approve this deal? I don't remember this campaign very well ... who or which groups were actively supporting this arrangement? What will this potentially do to the Debt Service of the City?

Robert

[Jeff Maynard]

Originally Posted by MainStreet

I opened my mail today and discovered a real estate flyer from Marcus & Millichap advertising that Harbor Point in Garland, Texas is for sale in the amount of $29,175,000.00. The add continues to read 10% Return and Attractive Debt Available.

Here is the website of the real estate agents: www.vitorinolevygroup.com

Bass Pro is featured on their homepage.

Here is the link to the offering / marketing package:
http://www.vitorinolevygroup.com/***...rbor_point.pdf

In the marketing package on page 5, there is a footnote about the relationship with this development and the City. It reads ...




Page 12 gives more details about the incentives.


Didn't the voters approve this deal? I don't remember this campaign very well ... who or which groups were actively supporting this arrangement? What will this potentially do to the Debt Service of the City?

Robert

Robert, I am totally confused here. I am trying to read this but I dont think I understand just who owns what currently. Can you, or someone else who can translate, put this into plain english so that us common folk can understand. While I supported the Bass Pro deal when it was first brokered, I had some concerns about the complexity of the deal. Now I try to read the text that you have supplied and I am totally confused on who play what part of this. A citizens view of the details would be very helpfull. Our City manager needs to step in and explain what this is, and what it means right away. It might also be pertinent for our council reps to try to explain it as they see it so that we have confidence that they actuall understand what is going on.

From my understanding, as long as Bass Pro and the other businesses stay in operation we, the City, do not suffer. If they move, close, or go out of business, we are stuck holding the bag, but I do not know how big that bag is.

[Mike Rose]

[QUOTE....Didn't the voters approve this deal? QUOTE]

What is there to say – any developer has the option to sell when they so desire; or when their back is against the financial wall (so to speak) and they must generate funds to satisfy other developments hunger for that $$$$$.
Unfortunately Garland has no input in this possible sale. The potential buyer will benefit from the “deal” struck between Harvest Partners and the City of Garland.

[Cool Hand]

And if the developer fails to sell, defaults, and bellies up, what then?
Will the community be left with a blighted shoreline, high weeds, graffiti, and more plywood?