Decision avoids City payments of up to $47 million that were to be used to reimburse the Palisades’ developer for infrastructure costs related to the Project
At the conclusion of its regular meeting on April 22, the Richardson City Council voted unanimously to direct City Manager Don Magner to notify JP-KBS Holdings LLC that the City considers the economic development agreement for the Palisades Planned Development project void and that the City does not intend to make any payments pursuant to the agreement. The decision comes after the resolution of the federal criminal cases associated with the then developer and a former mayor who endorsed the agreement.
“Given the outcome of the federal criminal cases of Mark and Laura Jordan, we believe the economic development agreement is void,” said Richardson City Manager Don Magner. “Since the federal convictions renders the economic development agreement void, we have not and will not make any payments associated with the agreement.”
In 2012, commercial real estate developer Mark Jordan began discussions with the City regarding a mixed-use project known as the Palisades Project. Jordan, like other developers, requested economic development incentives from the City. In April 2015, the City entered into a development and economic development agreement with the developer which would provide up to $47 Million in reimbursement for construction and infrastructure expenses related to the project. The terms of the agreement were consistent with incentive agreements for similar developments and were entered into under good faith. At the time the agreement was executed, the City Council and staff were unaware of the facts that later came to light in the federal criminal cases.
