Frisco sells discounted land to Whole Foods developer
... the council voted 4-2 to move forward with the land sale...
The purchase agreement between the town of
Frisco and Brynn Grey partners allows the developers to buy the
9.4-acre parcel for $4.5 million. It includes a deed of trust and a
subordination agreement under which the town agrees to subordinate up to
$5.4 million for infrastructure improvements. The agreement also allows
the town to take over payments should the developer default on its
loan.
The “Interstate Parcel” property sale
includes a promissory note from the developer with a term of 20 years.
The note has an annual interest rate of 2.25 percent, with no principle
or interest payment required for the first 10 years. If the developer
constructs the five buildings by June 3, 2018, the interest rate will
drop to 1.75 percent. The contract includes a “personal guarantee” by
the developer for the first three years of ownership.
The developer is not required to make payments on the property until June 3, 2024.
“I have been in business and done
commercial developments and own a number of properties, and I have never
heard or seen anything like this business deal,” said Frisco resident
Lou Wagner.
“The idea of not getting any principal
payments for that period of time and the lack of security beyond three
years, all of those things just go against everything I know about sound
business deals,” he said.
Kim Cancelosi voted yes on the sale.
Mayor Gary Wilkinson voted yes on the sale.
One council member was absent.
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