COUNCIL COMMUNICATION
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1 Meeting Date: August 23, 2016 COUNCIL COMMUNICATION Agenda Item: Agenda Location: Related Action Item Work Plan # Legal Review: 1 st Reading 2 nd Reading Subject: A resolution approving an agreement for Economic Development Incentives between the City of Thornton and Topgolf Thornton. Recommended by: John Cody Approved by: Jack Ethredge Ordinance previously Presenter(s): Julie Jacoby, Retail Administrator introduced by: SYNOPSIS: Topgolf intends to invest a substantial amount of money to develop a 64,000 sq. ft. entertainment facility which will anchor the development located on the southeast corner of I-25 and 136 th Avenue. The facility will house golf range practice type games and restaurant options, banquet/meeting room space, will create new employment opportunities, and enhance the City s tax base. Topgolf is requesting $3,750,000 in economic development incentives to assist them in making this development a reality. RECOMMENDATION: Staff recommends Alternative No. 1, approval of a 75/25% Sales Tax sharing incentive agreement of eligible sales tax revenues collected from Topgolf for no more than 10 years, not to exceed $3,750,000. Topgolf is an elite entertainment catalyst to join Premium Outlets on 136 th Avenue. It will be the premium anchor for the southeast corner of 136 th Avenue & I-25 and the development of four other retailers are contingent on Topgolf at this location. The addition of Topgolf to the corridor is continuing the focus of superior development in Thornton. Staff has determined that the development of the uses serves a public purpose by virtue of additional golf and restaurant options, banquet room/meeting space, the creation of new employment opportunities, enhancement of the City s tax base, increased customer base, and increased retail products and services. BUDGET/STAFF IMPLICATIONS: The incentive would be a rebate equivalent to 75% of the Eligible Sales Taxes received by the City from Topgolf; excluding Open Space Taxes. The total Economic Development Incentive shall not exceed $3,750,000 or 10 years. ALTERNATIVES: 1. Approve the resolution which includes a 75/25% sales tax sharing incentive agreement of new sales tax collected for no more than 10 years, not to exceed $3,750,000.
2 COUNCIL COMMUNICATION PAGE 2 2. Do not approve the resolution. BACKGROUND (ANALYSIS/NEXT STEPS/HISTORY): (includes previous City Council action) Topgolf is the premier golf entertainment complex where the competition of the sport is enjoyed while providing meeting areas. Each venue offers an upscale, laid-back experience that features 102 climate-controlled hitting bays, event spaces for groups of all sizes, and a varied food and drink menu. Topgolf, Inc. is a global sports entertainment company. With 26 venues serving 13 million guests annually and the world s largest digital golf audience, Topgolf has become a go-to destination for fun both in-venue and online. The Topgolf games can be enjoyed by all ages and skill levels, and the microchipped golf balls score themselves, providing players with instant feedback on each shot s accuracy and distance. Each venue features climate-controlled hitting bays for year-round play, a chef-driven food and beverage menu, music, and hundreds of HDTVs. Topgolf also brings interactive experiences to the community through its Topgolf U lessons, leagues, The Topgolf Tour, KidZone parties, social and corporate events, and the World Golf Tour (WGT) app. Topgolf operates a like facility in Centennial, Colorado. Thornton would be their second store in the State of Colorado.
3 R E S O L U T I O N A RESOLUTION APPROVING AN AGREEMENT FOR ECONOMIC DEVELOPMENT INCENTIVES BETWEEN THE CITY OF THORNTON AND TOPGOLF THORNTON. WHEREAS, Topgolf (the Developer ) represents that it is the proposed purchaser of the real property legally described in Exhibit A, (the Property ) which Property is located in the City of Thornton, Colorado; and WHEREAS, the City has determined that stimulating economic development and employment opportunities and establishing a sound tax base serves the general welfare of the residents of Thornton; and WHEREAS, the Property is currently zoned within the City of Thornton as Business Park District which permits, among other uses, private recreation club, restaurant, bar and multi-level golf driving range (the "Uses"); and WHEREAS, the Developer will construct and operate an approximately 65,000 square-foot Topgolf entertainment complex which will be constructed and operated in a manner generally consistent with the Developer s other Topgolf location in Centennial, Colorado and other operations in the United States; and WHEREAS, the Developer will invest a substantial amount of money to develop the Uses on the Property; and WHEREAS, the City desires to offer certain economic development incentives to the Developer as an inducement to develop the Uses; and WHEREAS, the City has determined that the development of the Uses serves a public purpose by virtue of additional golf and restaurant options, banquet room/meeting space, the creation of new employment opportunities, enhancement of the City s tax base, increased customer base, and increased retail products and services. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THORNTON, COLORADO, AS FOLLOWS: The Agreement between Topgolf Thornton and the City of Thornton, which is attached hereto as Exhibit B, is hereby approved and the City Manager is hereby authorized to execute, and the City Clerk to attest to the Agreement. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Thornton, Colorado, on, 2016.
4 CITY OF THORNTON, COLORADO Heidi K. Williams, Mayor ATTEST: Nancy A. Vincent, City Clerk 2
5 EXHIBIT A Lot 6 and Tract D of the Rolling Hills Subdivision Amended, Amendment No. 2.
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