MCDC approves conditional funding for Bridge Street Development

For Immediate Release

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Anna Folmnsbee
Communications and Media Manager
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MCDC approves conditional funding for Bridge Street Development
Decision to go before McKinney City Council next week

McKINNEY, Texas (Oct. 16, 2008) – The McKinney Community Development Corporation (MCDC) board today approved additional funding in the amount of $5 million for the construction of the full-service Westin Hotel and convention center. Conditions for the developer at Bridge Street Town Centre, O&S Holdings, LLC, include penalties of up to $5 million for late completion.

“No one could have predicted the severe economic downturn we’ve experienced in the last months, particularly these past couple of weeks,” said Mike Gibson, MCDC Director. “To further protect the already substantial investment in the project, we placed stringent conditions on the funding.”

O&S Holdings, LLC, requested the additional amount as up-front funding from the MCDC board at their regular meeting on Oct. 7. The board deferred the decision until their next meeting, held this morning. The approved funding will be distributed to the developer incrementally as construction progresses, not immediately as the developer initially requested.

Several conditions include project completion by February 2010, with a monthly penalty of $1 million per month up to $5 million total if the deadline is not met. Additionally, all remaining funding necessary to fully complete the project must be secured from other sources prior to the additional $5 million being made available.

“It’s incredibly important for the quality of life and economic development in our community to see this project through to completion,” said Gibson. “The decision was not made lightly, but given the current conditions, it’s in the best interest of McKinney to keep the project moving forward.”

The MCDC was formed to financially support projects that enhance quality of life and economic development, and they are funded by a half-cent sales tax. The McKinney City Council will consider the item at their next regular meeting Tuesday, Oct. 21, at 6:30 p.m. in City Hall, 222 N. Tennessee Street.

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