The Grapevine City Council at the July 17 bi-monthly meeting found no reason to debate or delay any of its decisions. With all Planning and Zoning commissioners and all City Council members present except C. Shane Wilbanks, place 1, the evenings business was passed unanimously.

The opening business was to swear in four new Planning and Zoning Commissioners. Kevin Busbee, Rob Undersander, Bill Bimmerman and Michael Crapp were given the oath of office by City Secretary Linda Huff. No one requested to speak before the joint hearing as a conditional use permit was granted Neiman Marcus to develop a 32,786 square foot retail addition to the main entrance of Grapevine Mills Mall. Dennis McGovern of the Mills Corporation and the contractor were present to respond to questions. "How soon can you get this built", asked by an enthusiastic Darlene Freed, place 4 was answered by the contractor with an expectation of breaking ground within two weeks.

Consideration of a conditional use permit by Performance Audi for an automotive dealership with a 40 foot pole sign and a six foot monument sign located at 2040 North State Highway 121 was tabled to the August 21, 2001 at Performance Audi’s request. An application requesting a conditional use permit for a lease space by Fleet Management Services was withdrawn since the property was no longer available.

New Business concerned the sale of the Palace Arts Center and Lancaster Theatre to the city of Grapevine by the Grapevine Heritage Foundation. An ordinance was passed authorizing sale of more than four million dollars of Combination Tax and Revenue Certificates of Obligation, series 2001 for financing the buy. Grapevine is buying the center in order to provide permanent financing for its renovation. The city will lease the facility back to the Foundation with a 20 year triple net lease. During this time the Foundation will operate, maintain and repair the facility. The rent will be equal to the City’s principal and interest payments on the Certificates of Obligation. Security for the lease will be the all net revenues from operations of the Palace, unencumbered private donations, all local and federal grants and Foundation revenues from projects, operations and festivals. The lease gives the Foundation the option to purchase the Palace at its market value, less depreciation. The depreciation schedule will follow the bond schedule. When the debt is retired the Foundation will buy back the facility.

Seven bids were received at 2:00 today for the contract on the renovation of the Palace Arts Center and Lancaster Theatre. City planner Ron Stambaugh said that all bids were very close. Acceptance of the lowest bid of $4,979,918, submitted by W.R. Huff was approved.

All eight items on the consent agenda were collectively passed:

• Award of engineering services contract to Alan Plummer Associates Inc. for design of rehabilitation of four sewage lift stations.
• Ordinance authorizing additional school zones on Dove Rd., Lucas Street, Worthington Street and Scribner Street relative to the new Grapevine Middle School.
• Ordinance abandoning a portion of right-of-way located at the southeast corner of the Dooley Street and Wildwood Drive intersection.
• Ordinance increasing Building and Construction permit fees effective October 1, 2001.
• Renewal of asphalt milling services annual contract to Dustrol, Inc.
• Renewal of street paving fabric annual contract to Texas Steel Culvert.
• Renewal of automotive tires annual contract to Blagg Tire Company.

Approve minutes of July 6, 2001 City Council Meeting.

Preliminary and final Plat Applications Lot1, Block 4, Kelly Addition by David McMahan, developer concerning the development of multi-family residences findings were approved.