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For more information contact Jones Lang LaSalle 8343 Douglas Avenue Dallas TX 75225
Jones Lang LaSalle, Inc. All rights reserved. This memorandum was created only for the purpose of providing information about the subject prop-erty and should not be construed as a binding offer to sell the property. The Offering Memorandum and the sale offering may be amended or withdrawn at any time without notice. Although information has been obtained from sources deemed reliable, the Owner’s representatives, bro-kers or agents make no guarantees as to the accuracy of the information contained herein, and offer the property without expressed or implied warranties of any kind.
1 5 0 0 E I n d u s t r i a l B l v d McKinney, Texas 75069
C o l l i n C o u n t y R e g i o n a l A i r p o r t L a n d F e e S i m p l e l a n d f o r s a l e w i t h T T F ( T h r o u g h t h e F e n c e ) a c c e s s t o a i r p o r t p r o p e r t y
2
PARCEL 1
133 Acres
PARCEL 2
67 Acres
PARCEL 3
48 Acres
PARCEL 4
139 Acres
PARCEL 5
49 Acres
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Airport Specialty Group Jones Lang LaSalle has in-depth experience of providing advice to developers, investors, owners and occupiers of air-port-related property across the globe. We focus on our clients’ needs and tailor our approach to facilitate the strategic delivery of real estate services and provide the advisory and execution services best suited to the task at hand. A key differentiating factor is that we are able to implement the advice we provide. Key Statistics
We have advised or completed projects for more than a dozen of the world’s top airports. We have advised six of the leading global airport operators: BAA, ADP, Schiphol, TBI, AENA and Hong Kong Airport Authority. We have advised on projects at the world’s largest international airports including Heathrow Airport, Chicago O’Hare Airport, John F Kennedy Airport, Sydney Airport, Changi Airport and Schiphol Airport. We provided property consultancy services to the winning APAC consortium on one of the world’s largest airport pri-vatizations in Australia. We are familiar with the operational and business aspects of airports through involvement in valuation and aeronauti-cal pricing issues.
Key Services Jones Lang LaSalle transforms global best practices into local real estate solutions that serve our clients’ goals. We help clients align their real estate activities with broader business objectives. These clients include corporations, governments, higher education, developers and investors.
Development and Asset Strategy – assists in the development and marketing of properties, including city centers, airports, waterfronts and railways Occupier Organizational Strategy – applies best practices to the structure and process of real estate management Occupier Portfolio Strategy – applies best practices for the optimization of occupier portfolios Retail Strategy – assists owners, investors and retailers in retail strategies and portfolio advice Merger, Acquisition and Transformation Strategy – provides advice on the specific portfolio management issues that arise during mergers and/or acquisitions
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Global capabilities Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com. Local strength We have had an office here in the Dallas Fort Worth metroplex for 30+ years, and currently have over 400 employees in this area. We have a commanding share of the market and our clients list is distinguished. Track record of recognition
ABOUT JONES LANG LASALLE
3
TABLE OF CONTENTS
Investment Summary 4
Property Overview 6
Airport Overview 8
Opportunities for Development 10
McKinney Area Overview 12
About Jones Lang LaSalle 14
8343 Douglas Avenue, Suite 100, Dallas, Texas 75225
Further information is available from the seller’s exclusive representatives
For more information Tom McElroy Paul Whitman Senior Vice President President, DFW Region 214.438.6189 214 438 6208 [email protected] [email protected]
4
Love Field
1
2
4
6
3
5
7
8
9
21
2
3
5
Millennium Technology Park 6
4 Allen Central Park
Heritage Business Park
Historic Downtown McKinney
Allen Events Center
Location, Points of Interest and Drive Times
15
10 17
16 13 12
11 14 18
19 20
1 University Business Park
11
9
10
8
PepsiCo HQ
Encana
Enterprise Business Park
Craig Ranch
EDS HQ 13
Cingular 12
15 Dr. Pepper Snapple
19
17
18
16
Frito-Lay HQ
Pizza Hut
J C Penney HQ
The Campus at Legacy
Ericsson 20
Children’s Hospital 14
Millennium Technology Park 7
Cowboys Stadium 21
17
INCENTIVE AVAILABILITY
McKinney Economic Development Corporation (MEDC) provides incentives to qualifying businesses wanting to develop a business presence at Collin County Regional Airport.
MEDC determines the amount of the incentive based on several factors: the taxable amount of new real property improvement (hangars/office), business personal property (aircraft) brought to McKinney and the number of jobs/annual payroll either new or relocated to McKinney. The sustainability of a project can also influence the amount of the incentive. Funds can be used for infrastructure, relocation, training and other business necessities.
Since it was first formed in 1993, MEDC has invested in more than 100 projects adding more than $1 billion of taxable value into the economy. Those projects include airport projects and the relocation of major corporate flight departments. Jones Lang LaSalle has a special practice group, Business and Economic Incentives, that would be able to assist a buyer with that work.
Through-the-Fence Operations Although it is preferred that aeronautical facilities are developed on airport property, MADC will entertain a proposal to allow aircraft access from adjacent non-airport property. This practice is commonly referred to as Through-the-Fence or Off-airport Access.
Airport
16
Just 30 miles north of downtown Dallas, McKinney is a picturesque city with a small-town feel that is quite different from the Metroplex's urban sprawl. The friendly charm, green spaces and comfortable pace disguise the fact that McKinney, with a population of more than 133,500, is one of the fastest-growing cities in America. Beautiful tree-lined streets, di-verse residential neighborhoods, outstanding educational opportunities, a robust business environment, a charming his-toric downtown and a strong sense of community make McKinney truly stand out. The Census Bureau listed McKinney as the nation's fastest growing city from 2000 to 2003 and again in 2006, among cities with more than 50,000 people. In 2007 it was ranked second-fastest growing among cities with more than 100,000 people and in 2008 as third-fastest. In July 2010, McKinney was ranked 5th place in CNN's Money Magazine's list of best places to live in the United States. Also, McKinney is the only City in Texas that made the top ten. Accessibility McKinney is strategically located 30 miles north of downtown Dallas on US 75 Central Expressway. SH 121 provides a direct link to DFW International Airport only 30 miles away. U.S. 380 goes through McKinney and connects to I-35 (the NAFTA superhighway) in Denton 30 miles to the west, and to I-30 approximately 30 miles to the east in Greenville. In addition, the Dallas North Tollway and the George Bush Turnpike (SH190) are easily accessible from McKinney. Demographics McKinney's population has more than doubled over the last ten years. Statistics show it is a community of young, highly-educated residents that command high paying jobs in the marketplace. Over 35 percent of McKinney residents have earned a college degree - twice the Metroplex average. McKinney compared to Texas state average:
Median household income above state average Median house value above state average Unemployed percentage below state average Hispanic race population percentage significantly above state average Median age significantly below state average Foreign-born population percentage significantly above state average Length of stay since moving in significantly below state average House age significantly below state average Percentage of population with a bachelor's degree or higher above state average
MCKINNEY AREA OVERVIEW
Money Magazine recently rated McKinney the
fifth best place to live in the country in 2010
5
Location Collin County, Texas; south of U.S. Highway 380 and east of State Highway 5
Address 1500 E Industrial Blvd McKinney, Texas
Size 436 acres
Zoning Planned development - Light manufacturing
INVESTMENT SUMMARY
THE OFFERING Jones Lang LaSalle has been exclusively retained by The Owner to offer for sale the 436 acres in 5 parcels adjacent to the Collin County Regional Airport at McKinney. This land is an ideal investment in a grow-ing area with airport access. The property is in five parcels, three on the west side of the airport and two on the east side. The land offered is fee simple along with two TTF (through the fence) easements
PROPERTY HIGHLIGHTS
Prime location ripe for development
Fee Simple
Airport access with TTF (Through the Fence) easements (with regulatory approval)
Airport renovations are underway and funding assured for future support
New state of the art airport tower is complete
Potential for PPPs (Private-Public Partnerships) with the City of McKinney
JONES LANG LASALLE’S CAPABILITIES Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website. www.joneslanglasalle.com.
PPPs In reference to this subject property, Jones Lang LaSalle has extensive experience with airport real estate, and knows that great potential exists at ground level. Our expertise includes attracting quality tenants, expanding land/air cargo opportunities, and developing open land within and outside of the airport. We also are well versed in creating Private-Public Partnerships (PPPs) to repurpose and redevelop excess land and facilities.
6 15
Summary of Project Costs The following summarize the projected project costs of the projects delineated above: Category Estimated Cost (in 2010 Dollars)
Roadway Projects “Unnamed” north/south Perimeter Road and FM 546 $ 40,000,000 Administration and Implementation $ 1,000,000 Total Project Cost $ 41,000,000 Proposed Changes in Municipal Master Plans, Zoning Ordinances, Building Codes, Subdivision Regulations It is anticipated that the Airport Layout Plan may need to be updated to fulfill the mission and vision of the Airport. How-ever, it is not anticipated at this time that any change in zoning will be required to implement the projects delineated herein. Relocation of Displaced Persons This plan currently does not call for nor anticipate the displacement and relocation of persons for the proposed projects.
14
Administration and Implementation Administrative costs, including reasonable charges for the time spent by City of McKinney employees, MADC employees and/or employees associated with any non-profit groups established to assist with implementation within TIRZ No. 2 will be eligible for reimbursement as project costs, upon approval by the TIRZ Board of Directors and in connection with the implementation of TIRZ No. 2 Project Plan and Financing Plan. Other related administrative expenses including legal fees and consulting fees, including planning, engineering and design fees, of the City, management expenses, meeting expenditures and equipment are included in this category. Non-Project Costs It is anticipated that the City of McKinney may make economic development loans or grants to TIRZ No. 2 or the MADC in furtherance of implementing this Plan. Should such loans or grants be made, consistent with the financing documents authorizing the issuance of bonds or other obligations of the MADC, tax increments may be transferred to the City or the MADC to reimburse the City for the funds made available by any such Chapter 380 economic development loans or grants in furtherance of the implementation of this Plan, and fulfilling the public purposes of developing and diversifying the economy of TIRZ No. 2, eliminating unemployment or underemployment in TIRZ No. 2, and developing or expanding transportation, business, and commercial activity in TIRZ No. 2. It is not possible to quantify the non-project costs at this time, other than to say that they are anticipated. All bonds issued are subject to City Council approval, and to minimize the exposure to the City’s general fund revenues, the MADC shall maintain sufficient debt reserve accounts and cover-age ratios.
7
PROPERTY OVERVIEW
PROPERTY OVERVIEW
436 acres divided into five sections:
Section 1—133 acres with easement that provides TTF (Through the
Fence access to airport taxiways and runways)
Section 2—67 acres with easement that provides TTF (Through the
Fence access to airport taxiways and runways)
Section 3—48 acres with easement that provides TTF (Through the
Fence access to airport taxiways and runways)
Section 4—139 acres
Section 5—49 acres
All property is “Fee Simple” land
Zoned: Planned development - Light manufacturing.
$77 million in federal and state grants and matching funds by the City of
McKinney and MEDC have been invested in airport development since 2002
to support Business Aviation growth while preparing the airport for future com-
mercial air service options
New state-of-the-art airport tower is complete
The airport is operated by the McKinney Airport Development Corporation
(MADC), which has a management contract with the City of McKinney to
maintain, develop, market and operate the airport. Day-to-day management
is conducted by an experienced, award-winning, professional staff.
Construction of the Replacement Runway (7,002’ x 150’) is projected to be
completed in August 2012. A future 1,500-foot extension is planned when
needed.
8
AIRPORT OVERVIEW
AIRPORT OVERVIEW The Collin County Regional Airport is ideally situated in a region that has and will continue to see strong population and economic growth. It provides enormous economic benefits and growth prospects for the city of McKinney, serving as one of the gateways to the region. It will eventually develop into one of the city’s more important employment and tax revenue cen-ters. It is the primary general aviation airport serving the City of McKinney, Collin County and surrounding metropolitan are-as of Allen, Frisco and Plano. The Collin County Regional Airport currently generates an estimated $80 million in both direct and indirect economic impact and over $3 million in certified tax revenues annually. Key strengths
No takeoff or landing delays Federal Contract Airport Traffic Control Tower US Customs on-site McKinney Fire Department (station #4) with structural and Aircraft Rescue and Fire Fighting capabilities on-site. On the edge of DFW Class-B air space for quick arrival and departure from the area.
Location
Close proximity to Dallas metropolitan area and in the 6th most populous county in Texas
Infrastructure Existing runway capable of supporting aircraft up to B-737 New runway will be operational August 2012. It will measure 7,002’ x 150’ with a weight-bearing capacity of 450,000 lbs dual tandem. A future 1,500-foot extension is planned when needed New control tower was completed in February, replacing the older two-story tower. Air traffic controllers now work at a height of 78 feet, more than seven stories above ground level. The tower cab will initially support two air traffic controller positions but will be capable of expanding up to five. Security is enhanced with Lenel state-of-the-art perimeter access management and controls supported by 6-foot, barbed wire topped chain link fence that encircles the entire air operations area Utilities are accessible along the entire west side of the airport. The Challenger Hangar Area, located between McKinney Fire Station #4 and the FBO passenger terminal building have all utilities in place Excellent FBO services and facilities necessary to support aeronautical needs
Accessibility
Easy in and out arrival and departures due to proximity to the edge of DFW Class-B airspace No commercial aviation congestion as found at region’s larger airports. Roadway accessibility – Hwy 5, SH 121, US 75 and US 380 Close proximity to McKinney business districts
Green Field Condition
Airport is not landlocked, ample aviation clear zones Room for expansion of airfield and internal assets Land for development of periphery airport zones
Political Support & Leadership
City Government & Council Members are “Airport Friendly” Excellent track record for financial assistance from The FAA, TxDOT, MEDC and the City of McKinney Professionally managed by an accredited, award-winning staff
13
The following diagram delineates the projects within and benefiting TIRZ No. 2:
12
Tax Increment Reinvestment Zone No. 2 (Airport) Preliminary Project Plan
Background The City of McKinney TIRZ No. 2 (outlined in Figure 1) will support the ongoing investment and development of the Collin County Regional Airport (“the Airport”), which is operated, maintained, developed and managed by the McKinney Airport Development Corporation (MADC). On February 12, 2009, the MADC approved a strategic plan, which continues to be updated, establishing the following mission statement and vision. Mission Statement: Develop the premier general aviation re-liever airport in the D/FW Metroplex with future commercial service goals. Vision: Collin County Regional Airport is an air transportation center and economic engine for the North Dallas Region, facilitating general aviation, business aviation and related services by an aggressive market-ing program and aeronautical service, in-frastructure and facility development pro-gram. TIRZ No. 2, as delineated below, will pro-vide infrastructure support necessary to fulfill this mission and vision. Existing Conditions and Uses The Airport is located east of the Town Center in a primarily undeveloped area. The Airport itself is designated an airport zone. The area around the Airport is pri-marily designated with light manufacturing and agricultural zoning districts. Proposed Improvements and Uses The following initiatives are included in the current plan for the Airport:
1. Focus on Business Aviation Activity 2. Continue to Assess Perimeter Access Control and Airport Security 3. Continue to Prepare for Commercial Passenger Service
The key to these initiatives will be the investment in the roadway infrastructure necessary to access the Airport as deline-ated below, i.e. the perimeter north/south roadway along the eastern side of the Airport and FM 546. The cost estimated for those roadway projects is $40,000,000.
9
AIRPORT STRATEGIC DIRECTION, GOALS AND INITIATIVES Initiative One: Focus on Business Aviation Activity
Continue to implement the airport master plan to guide development of infrastructure that will promote
increased business activity and growth
Initiative Two: Continue to assess perimeter access and airport security.
Airport perimeter access controls will be expanded and enhanced with the continued development and
expansion of the airport.
Initiative Three: Acquire Land for future growth and development
MADC recognizes the need to expand the airports land base.
Initiative Four: Continue to prepare for commercial air service
Update the March 2007 Air Service Feasibility Study and identify a site location for the development of a
commercial air service terminal complex. Initiative Five: Airport Master Plan and Airport Layout Plan Update
MADC is required to maintain an up-to-date Airport Layout Plan (ALP) on file with TxDOT’s Division of
Aviation. Each major capital improvement must include an ALP update.
Economic
Large based aircraft population of two “vested” Hangar Owner Assns. Several key Corporate Flight Department “Anchor Tenants” Taxes generally lower than those found at surrounding Metro airports Generates an estimated $80 million in both direct and indirect economic impact Generates more than $2 million in certified tax revenues annually FAA-designated General Aviation Reliever Airport makes airport eligible for FAA Reliever Airport grant funding. FAA-designated General Aviation Reliever Airport gives airport a high priority for federal and state funding
10
OPPORTUNITIES FOR DEVELOPMENT
Major airframe repair station Avionics sales, installation, repair Major power plant overhaul Aircraft completion centers Aircraft restoration services Aircraft interior shops Aircraft parts distribution and logistics center
OPPORTUNITIES FOR DEVELOPMENT Airport properties are normally divided into two generally accepted use categories: Airside areas and Land-side areas. Airside areas include all areas accessible to and necessary for safe aircraft operations, including runways, taxiways, ramps and clear zones. Landside areas would include aviation support facilities such as FBO’s, hangars, fuel tank farms, public parking areas, public access roads and commercial structures on air-port owned property. Development for landside areas - related to aviation operations and equipment
Fuel sales and line services Aircraft maintenance Hangar and tie down services Flight training Aircraft sales Charter air services Flight base operations Food and catering services
COMMON HANGAR
11
Development opportunities on private land adjacent to airport property
Desire to locate at the airport as their business operations are supported by flight activities, The business owner is a pilot who wants to be located at an airport The business gains visibility in the eye of the customer by being located at an airport Real estate zoning, price and developed infrastructure offer a competitive advantage for their business
Additional development opportunities
Retail/Light Industrial Hotel/Motel/Lodging Facilities Restaurants & Fast Food Establishments General Tool/Equipment Rental Centers Passenger Car Rental Convenience Stores Gasoline Stations With Convenience Stores
Office/Industrial
Air Charter Services Flight Scheduling And Dispatching Aircraft Engines And Parts Brokerage Testing Laboratories Aircraft Insurance Agencies And Brokerages
Warehousing
Aircraft Engines And Parts Wholesalers General Warehousing And Storage
Commercial Business Services
General Automotive Repair Child Care/Day Care Automotive Body, Paint, And Interior Repair And Maintenance Technical And Trade Schools Computer And Office Machine Repair And Maintenance Commercial, Home And Garden Equipment Rental Appliance Repair And Maintenance Commercial Banking Institutions Electronics Repair And Maintenance Real Estate Offices Lawyers Offices Engineering Services Drafting Services Interior Design Services
10
OPPORTUNITIES FOR DEVELOPMENT
Major airframe repair station Avionics sales, installation, repair Major power plant overhaul Aircraft completion centers Aircraft restoration services Aircraft interior shops Aircraft parts distribution and logistics center
OPPORTUNITIES FOR DEVELOPMENT Airport properties are normally divided into two generally accepted use categories: Airside areas and Land-side areas. Airside areas include all areas accessible to and necessary for safe aircraft operations, including runways, taxiways, ramps and clear zones. Landside areas would include aviation support facilities such as FBO’s, hangars, fuel tank farms, public parking areas, public access roads and commercial structures on air-port owned property. Development for landside areas - related to aviation operations and equipment
Fuel sales and line services Aircraft maintenance Hangar and tie down services Flight training Aircraft sales Charter air services Flight base operations Food and catering services
COMMON HANGAR
11
Development opportunities on private land adjacent to airport property
Desire to locate at the airport as their business operations are supported by flight activities, The business owner is a pilot who wants to be located at an airport The business gains visibility in the eye of the customer by being located at an airport Real estate zoning, price and developed infrastructure offer a competitive advantage for their business
Additional development opportunities
Retail/Light Industrial Hotel/Motel/Lodging Facilities Restaurants & Fast Food Establishments General Tool/Equipment Rental Centers Passenger Car Rental Convenience Stores Gasoline Stations With Convenience Stores
Office/Industrial
Air Charter Services Flight Scheduling And Dispatching Aircraft Engines And Parts Brokerage Testing Laboratories Aircraft Insurance Agencies And Brokerages
Warehousing
Aircraft Engines And Parts Wholesalers General Warehousing And Storage
Commercial Business Services
General Automotive Repair Child Care/Day Care Automotive Body, Paint, And Interior Repair And Maintenance Technical And Trade Schools Computer And Office Machine Repair And Maintenance Commercial, Home And Garden Equipment Rental Appliance Repair And Maintenance Commercial Banking Institutions Electronics Repair And Maintenance Real Estate Offices Lawyers Offices Engineering Services Drafting Services Interior Design Services
12
Tax Increment Reinvestment Zone No. 2 (Airport) Preliminary Project Plan
Background The City of McKinney TIRZ No. 2 (outlined in Figure 1) will support the ongoing investment and development of the Collin County Regional Airport (“the Airport”), which is operated, maintained, developed and managed by the McKinney Airport Development Corporation (MADC). On February 12, 2009, the MADC approved a strategic plan, which continues to be updated, establishing the following mission statement and vision. Mission Statement: Develop the premier general aviation re-liever airport in the D/FW Metroplex with future commercial service goals. Vision: Collin County Regional Airport is an air transportation center and economic engine for the North Dallas Region, facilitating general aviation, business aviation and related services by an aggressive market-ing program and aeronautical service, in-frastructure and facility development pro-gram. TIRZ No. 2, as delineated below, will pro-vide infrastructure support necessary to fulfill this mission and vision. Existing Conditions and Uses The Airport is located east of the Town Center in a primarily undeveloped area. The Airport itself is designated an airport zone. The area around the Airport is pri-marily designated with light manufacturing and agricultural zoning districts. Proposed Improvements and Uses The following initiatives are included in the current plan for the Airport:
1. Focus on Business Aviation Activity 2. Continue to Assess Perimeter Access Control and Airport Security 3. Continue to Prepare for Commercial Passenger Service
The key to these initiatives will be the investment in the roadway infrastructure necessary to access the Airport as deline-ated below, i.e. the perimeter north/south roadway along the eastern side of the Airport and FM 546. The cost estimated for those roadway projects is $40,000,000.
9
AIRPORT STRATEGIC DIRECTION, GOALS AND INITIATIVES Initiative One: Focus on Business Aviation Activity
Continue to implement the airport master plan to guide development of infrastructure that will promote
increased business activity and growth
Initiative Two: Continue to assess perimeter access and airport security.
Airport perimeter access controls will be expanded and enhanced with the continued development and
expansion of the airport.
Initiative Three: Acquire Land for future growth and development
MADC recognizes the need to expand the airports land base.
Initiative Four: Continue to prepare for commercial air service
Update the March 2007 Air Service Feasibility Study and identify a site location for the development of a
commercial air service terminal complex. Initiative Five: Airport Master Plan and Airport Layout Plan Update
MADC is required to maintain an up-to-date Airport Layout Plan (ALP) on file with TxDOT’s Division of
Aviation. Each major capital improvement must include an ALP update.
Economic
Large based aircraft population of two “vested” Hangar Owner Assns. Several key Corporate Flight Department “Anchor Tenants” Taxes generally lower than those found at surrounding Metro airports Generates an estimated $80 million in both direct and indirect economic impact Generates more than $2 million in certified tax revenues annually FAA-designated General Aviation Reliever Airport makes airport eligible for FAA Reliever Airport grant funding. FAA-designated General Aviation Reliever Airport gives airport a high priority for federal and state funding
8
AIRPORT OVERVIEW
AIRPORT OVERVIEW The Collin County Regional Airport is ideally situated in a region that has and will continue to see strong population and economic growth. It provides enormous economic benefits and growth prospects for the city of McKinney, serving as one of the gateways to the region. It will eventually develop into one of the city’s more important employment and tax revenue cen-ters. It is the primary general aviation airport serving the City of McKinney, Collin County and surrounding metropolitan are-as of Allen, Frisco and Plano. The Collin County Regional Airport currently generates an estimated $80 million in both direct and indirect economic impact and over $3 million in certified tax revenues annually. Key strengths
No takeoff or landing delays Federal Contract Airport Traffic Control Tower US Customs on-site McKinney Fire Department (station #4) with structural and Aircraft Rescue and Fire Fighting capabilities on-site. On the edge of DFW Class-B air space for quick arrival and departure from the area.
Location
Close proximity to Dallas metropolitan area and in the 6th most populous county in Texas
Infrastructure Existing runway capable of supporting aircraft up to B-737 New runway will be operational August 2012. It will measure 7,002’ x 150’ with a weight-bearing capacity of 450,000 lbs dual tandem. A future 1,500-foot extension is planned when needed New control tower was completed in February, replacing the older two-story tower. Air traffic controllers now work at a height of 78 feet, more than seven stories above ground level. The tower cab will initially support two air traffic controller positions but will be capable of expanding up to five. Security is enhanced with Lenel state-of-the-art perimeter access management and controls supported by 6-foot, barbed wire topped chain link fence that encircles the entire air operations area Utilities are accessible along the entire west side of the airport. The Challenger Hangar Area, located between McKinney Fire Station #4 and the FBO passenger terminal building have all utilities in place Excellent FBO services and facilities necessary to support aeronautical needs
Accessibility
Easy in and out arrival and departures due to proximity to the edge of DFW Class-B airspace No commercial aviation congestion as found at region’s larger airports. Roadway accessibility – Hwy 5, SH 121, US 75 and US 380 Close proximity to McKinney business districts
Green Field Condition
Airport is not landlocked, ample aviation clear zones Room for expansion of airfield and internal assets Land for development of periphery airport zones
Political Support & Leadership
City Government & Council Members are “Airport Friendly” Excellent track record for financial assistance from The FAA, TxDOT, MEDC and the City of McKinney Professionally managed by an accredited, award-winning staff
13
The following diagram delineates the projects within and benefiting TIRZ No. 2:
14
Administration and Implementation Administrative costs, including reasonable charges for the time spent by City of McKinney employees, MADC employees and/or employees associated with any non-profit groups established to assist with implementation within TIRZ No. 2 will be eligible for reimbursement as project costs, upon approval by the TIRZ Board of Directors and in connection with the implementation of TIRZ No. 2 Project Plan and Financing Plan. Other related administrative expenses including legal fees and consulting fees, including planning, engineering and design fees, of the City, management expenses, meeting expenditures and equipment are included in this category. Non-Project Costs It is anticipated that the City of McKinney may make economic development loans or grants to TIRZ No. 2 or the MADC in furtherance of implementing this Plan. Should such loans or grants be made, consistent with the financing documents authorizing the issuance of bonds or other obligations of the MADC, tax increments may be transferred to the City or the MADC to reimburse the City for the funds made available by any such Chapter 380 economic development loans or grants in furtherance of the implementation of this Plan, and fulfilling the public purposes of developing and diversifying the economy of TIRZ No. 2, eliminating unemployment or underemployment in TIRZ No. 2, and developing or expanding transportation, business, and commercial activity in TIRZ No. 2. It is not possible to quantify the non-project costs at this time, other than to say that they are anticipated. All bonds issued are subject to City Council approval, and to minimize the exposure to the City’s general fund revenues, the MADC shall maintain sufficient debt reserve accounts and cover-age ratios.
7
PROPERTY OVERVIEW
PROPERTY OVERVIEW
436 acres divided into five sections:
Section 1—133 acres
Section 2—67 acres with easement that provides TTF (Through the
Fence access to airport taxiways and runways)
Section 3—48 acres with easement that provides TTF
Section 4—139 acres
Section 5—49 acres
All property is “Fee Simple” land
Zoned: Planned development - Light manufacturing.
$77 million in federal and state grants and matching funds by the City of
McKinney and MEDC have been invested in airport development since 2002
to support Business Aviation growth while preparing the airport for future com-
mercial air service options
New state-of-the-art airport tower is complete
The airport is operated by the McKinney Airport Development Corporation
(MADC), which has a management contract with the City of McKinney to
maintain, develop, market and operate the airport. Day-to-day management
is conducted by an experienced, award-winning, professional staff.
Construction of the Replacement Runway (7,002’ x 150’) is projected to be
completed in August 2012. A future 1,500-foot extension is planned when
needed.
6 15
Summary of Project Costs The following summarize the projected project costs of the projects delineated above: Category Estimated Cost (in 2010 Dollars)
Roadway Projects “Unnamed” north/south Perimeter Road and FM 546 $ 40,000,000 Administration and Implementation $ 1,000,000 Total Project Cost $ 41,000,000 Proposed Changes in Municipal Master Plans, Zoning Ordinances, Building Codes, Subdivision Regulations It is anticipated that the Airport Layout Plan may need to be updated to fulfill the mission and vision of the Airport. How-ever, it is not anticipated at this time that any change in zoning will be required to implement the projects delineated herein. Relocation of Displaced Persons This plan currently does not call for nor anticipate the displacement and relocation of persons for the proposed projects.
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Just 30 miles north of downtown Dallas, McKinney is a picturesque city with a small-town feel that is quite different from the Metroplex's urban sprawl. The friendly charm, green spaces and comfortable pace disguise the fact that McKinney, with a population of more than 133,500, is one of the fastest-growing cities in America. Beautiful tree-lined streets, di-verse residential neighborhoods, outstanding educational opportunities, a robust business environment, a charming his-toric downtown and a strong sense of community make McKinney truly stand out. The Census Bureau listed McKinney as the nation's fastest growing city from 2000 to 2003 and again in 2006, among cities with more than 50,000 people. In 2007 it was ranked second-fastest growing among cities with more than 100,000 people and in 2008 as third-fastest. In July 2010, McKinney was ranked 5th place in CNN's Money Magazine's list of best places to live in the United States. Also, McKinney is the only City in Texas that made the top ten. Accessibility McKinney is strategically located 30 miles north of downtown Dallas on US 75 Central Expressway. SH 121 provides a direct link to DFW International Airport only 30 miles away. U.S. 380 goes through McKinney and connects to I-35 (the NAFTA superhighway) in Denton 30 miles to the west, and to I-30 approximately 30 miles to the east in Greenville. In addition, the Dallas North Tollway and the George Bush Turnpike (SH190) are easily accessible from McKinney. Demographics McKinney's population has more than doubled over the last ten years. Statistics show it is a community of young, highly-educated residents that command high paying jobs in the marketplace. Over 35 percent of McKinney residents have earned a college degree - twice the Metroplex average. McKinney compared to Texas state average:
Median household income above state average Median house value above state average Unemployed percentage below state average Hispanic race population percentage significantly above state average Median age significantly below state average Foreign-born population percentage significantly above state average Length of stay since moving in significantly below state average House age significantly below state average Percentage of population with a bachelor's degree or higher above state average
MCKINNEY AREA OVERVIEW
Money Magazine recently rated McKinney the
fifth best place to live in the country in 2010
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Location Collin County, Texas; south of U.S. Highway 380 and east of State Highway 5
Address 1500 E Industrial Blvd McKinney, Texas
Size 436 acres
Zoning Planned development - Light manufacturing
INVESTMENT SUMMARY
THE OFFERING Jones Lang LaSalle has been exclusively retained by The Owner to offer for sale the 436 acres in 5 parcels adjacent to the Collin County Regional Airport at McKinney. This land is an ideal investment in a grow-ing area with airport access. The property is in five parcels, three on the west side of the airport and two on the east side. The land offered is fee simple along with two TTF (through the fence) easements
PROPERTY HIGHLIGHTS
Prime location ripe for development
Fee Simple
Airport access with TTF (Through the Fence) easements (with regulatory approval)
Airport renovations are underway and funding assured for future support
New state of the art airport tower is complete
Potential for PPPs (Private-Public Partnerships) with the City of McKinney
JONES LANG LASALLE’S CAPABILITIES Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website. www.joneslanglasalle.com.
PPPs In reference to this subject property, Jones Lang LaSalle has extensive experience with airport real estate, and knows that great potential exists at ground level. Our expertise includes attracting quality tenants, expanding land/air cargo opportunities, and developing open land within and outside of the airport. We also are well versed in creating Private-Public Partnerships (PPPs) to repurpose and redevelop excess land and facilities.
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Love Field
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2
4
6
3
5
7
8
9
21
2
3
5
Millennium Technology Park 6
4 Allen Central Park
Heritage Business Park
Historic Downtown McKinney
Allen Events Center
Location, Points of Interest and Drive Times
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10 17
16 13 12
11 14 18
19 20
1 University Business Park
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PepsiCo HQ
Encana
Enterprise Business Park
Craig Ranch
EDS HQ 13
Cingular 12
15 Dr. Pepper Snapple
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Frito-Lay HQ
Pizza Hut
J C Penney HQ
The Campus at Legacy
Ericsson 20
Children’s Hospital 14
Millennium Technology Park 7
Cowboys Stadium 21
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INCENTIVE AVAILABILITY
McKinney Economic Development Corporation (MEDC) provides incentives to qualifying businesses wanting to develop a business presence at Collin County Regional Airport.
MEDC determines the amount of the incentive based on several factors: the taxable amount of new real property improvement (hangars/office), business personal property (aircraft) brought to McKinney and the number of jobs/annual payroll either new or relocated to McKinney. The sustainability of a project can also influence the amount of the incentive. Funds can be used for infrastructure, relocation, training and other business necessities.
Since it was first formed in 1993, MEDC has invested in more than 100 projects adding more than $1 billion of taxable value into the economy. Those projects include airport projects and the relocation of major corporate flight departments. Jones Lang LaSalle has a special practice group, Business and Economic Incentives, that would be able to assist a buyer with that work.
Through-the-Fence Operations Although it is preferred that aeronautical facilities are developed on airport property, MADC will entertain a proposal to allow aircraft access from adjacent non-airport property. This practice is commonly referred to as Through-the-Fence or Off-airport Access.
Airport
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Global capabilities Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $45.3 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com. Local strength We have had an office here in the Dallas Fort Worth metroplex for 30+ years, and currently have over 400 employees in this area. We have a commanding share of the market and our clients list is distinguished. Track record of recognition
ABOUT JONES LANG LASALLE
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TABLE OF CONTENTS
Investment Summary 4
Property Overview 6
Airport Overview 8
Opportunities for Development 10
McKinney Area Overview 12
About Jones Lang LaSalle 14
8343 Douglas Avenue, Suite 100, Dallas, Texas 75225
Further information is available from the seller’s exclusive representatives
For more information Tom McElroy Paul Whitman Senior Vice President President, DFW Region 214.438.6189 214 438 6208 [email protected] [email protected]
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PARCEL 1
133 Acres
PARCEL 2
67 Acres
PARCEL 3
48 Acres
PARCEL 4
139 Acres
PARCEL 5
49 Acres
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Airport Specialty Group Jones Lang LaSalle has in-depth experience of providing advice to developers, investors, owners and occupiers of air-port-related property across the globe. We focus on our clients’ needs and tailor our approach to facilitate the strategic delivery of real estate services and provide the advisory and execution services best suited to the task at hand. A key differentiating factor is that we are able to implement the advice we provide. Key Statistics
We have advised or completed projects for more than a dozen of the world’s top airports. We have advised six of the leading global airport operators: BAA, ADP, Schiphol, TBI, AENA and Hong Kong Airport Authority. We have advised on projects at the world’s largest international airports including Heathrow Airport, Chicago O’Hare Airport, John F Kennedy Airport, Sydney Airport, Changi Airport and Schiphol Airport. We provided property consultancy services to the winning APAC consortium on one of the world’s largest airport pri-vatizations in Australia. We are familiar with the operational and business aspects of airports through involvement in valuation and aeronauti-cal pricing issues.
Key Services Jones Lang LaSalle transforms global best practices into local real estate solutions that serve our clients’ goals. We help clients align their real estate activities with broader business objectives. These clients include corporations, governments, higher education, developers and investors.
Development and Asset Strategy – assists in the development and marketing of properties, including city centers, airports, waterfronts and railways Occupier Organizational Strategy – applies best practices to the structure and process of real estate management Occupier Portfolio Strategy – applies best practices for the optimization of occupier portfolios Retail Strategy – assists owners, investors and retailers in retail strategies and portfolio advice Merger, Acquisition and Transformation Strategy – provides advice on the specific portfolio management issues that arise during mergers and/or acquisitions
For more information contact: Tom McElroy Senior Vice President 214.438.6189 [email protected] Jones Lang LaSalle 8343 Douglas Avenue Dallas TX 75225
Jones Lang LaSalle, Inc. All rights reserved. This memorandum was created only for the purpose of providing information about the subject property and should not be construed as a binding offer to sell the property. The Offering Memorandum and the sale offering may be amended or withdrawn at any time without notice. Although information has been obtained from sources deemed reliable, the Owner’s representatives, brokers or agents make no guarantees as to the accuracy of the information contained herein, and offer the property without expressed or implied warranties of any kind.
1 5 0 0 E I n d u s t r i a l B l v d McKinney, Texas 75069
C o l l i n C o u n t y R e g i o n a l A i r p o r t L a n d F e e S i m p l e l a n d f o r s a l e w i t h T T F ( T h r o u g h t h e F e n c e ) a c c e s s t o a i r p o r t p r o p e r t y
