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ST8804-CS 900827 UNIVEST DEVELOPMENT COMPANY August 27, 1990 Mr. Alan D. Ratliff City Manager City of Coppell P. O. Box 478 Coppell, Texas 75019 Re: Construction of Road and Utility Improvements Park Place Addition and Heartz Road Dear Mr. Ratliff: As you know, the preliminary plat for the Park Place Addition was initially approved by the City on or about December 10, 1989. I also delivered a request on June 6, 1990 (copy enclosed) to extend the termination date of the preliminary plat to December 31, 1990, and was verbally advised that request was presented to the City Council with the City's staffs recommendation for approval. However I have never received confirmation of the plat extension. In order to develop the Park Place Addition, I have a contract to purchase the land from its current owner, ABQ Federal Savings Bank ("ABQFSB"), which operates under the conservatorship of the Resolution Trust Corporation CRTC"). The land acquisition is scheduled to close as soon as possible in September, subject to the matters requested herein. At the time the Park Place preliminary plat was submitted to the City for approval, I advised the City that this property is exempt from assessment for the improvement cost of future widening Sandy Lake Rd., according to the terms of the Contract of Sale between the city and the Parks of Coppell Joint Venture. Enclosed are copies of my letter of September 19, 1989 which contained that statement, and a follow up letter of September 29, 1989 requested by the City staff which cited the legal basis for the exemption. Subsequently no further questions on this matter were raised during the preliminary plat approval process, but I have never been formally advised that the City agrees with the exemption. The Park Place Addition is to obtain its sanitary sewer service by connecting to the sanitary sewer line to be constructed with the extension of Heartz Rd. on the west boundary of the Park Place Addition. Heartz Rd. was originally to be constructed by the previous owner of the Park Place land and other land adjacent to the future extension of Heartz Rd., ABQ Development Corporation ("ABQDC"). Although the existing 8" sewer line on the west side of Park Place probably has sufficient capacity to serve Park Place, the new sewer line was to be built anyway by ABQDC, and is sized to serve approximately 243 acres in Coppell. Also the 12" water line to be constructed in Heartz is sized to serve the entire area between Sandy Lake and Parkway Blvd. The construction of Heartz Road and its associated utilities has been previously approved by the City upon request by ABQDC. Subsequent to that approval, the ownership of ABQDC has been succeeded by ABQFSB. ABQFSB would not agree to UNIVEST FINANCIAL CORP. · ALLEN EQUITIES INC. 12770 COlT RD.. SUITE 1215 . DALLAS, TEXAS 75251 . 214/233-5771 Mr. Alan D. Ratliff - Page 2 continue with the Heartz Rd. construction project. In order to go forward with the Park Place Addition, I have agreed to consider taking over the construction of Heartz, subject to certain revisions in the original design of Heartz Rd., including among other things revisions to the plans for Heartz Rd. previously approved, which were prepared by Jerry Parche', consulting engineer for ABQDC (the "Parche' Heartz Plans"). The revisions to the original design of Heartz Rd. which we request from the City are primarily reflected in those certain revised plans for the construction of Heartz Road and its associated utilities which have been prepared at our request, and with the consent of ABQFSB, by Dan M. Dowdey and Assc., dated May of 1990 (the "Dowdey Heartz Plans"). The Dowdey Heartz Plans were submitted to the City for its review on or around August 10, 1990. Any other requests for revision to the construction requirements for Heartz Rd. outside of the Dowdey Heartz Plans are described herein. Shortly after our meeting with the City on this issue of April 27, 1990, we were advised by the City staff that the reconstruction of the sewer line in Heartz Rd. was a matter under City control, and we would not be required to obtain the review or approval of the Coppell Municipal Utility District No. 1 ("CMUD") on any work related to the Heartz construction, other than the actual connection with the CMUD trunk sewer line north of Parkway Blvd. Recently I have been advised by Mr. Paul Phy, attorney for the CMUD, that the sewer line, and possibly some of the other utilities in Heartz Rd., are to owned by the CMUD and will be subject to their review process. In order to avoid potential delays, we have also forwarded to the CMUD a set of the Dowdey Heartz Plans for their review to the extent which may be required. Mr. Phy has also expressed concern over whether certain properties which are in the drainage area for this sewer line, but which are not in the CMUD, might be allowed to tie onto this line. While I understand there are many issues between the City and the CMUD, it is important that our development (which by the way is in the CMUD) is not delayed by these matters or subjected to a duplication in fees or inspection. Therefore this letter also requests the City to obtain the approval of the CMUD, to the extent necessary, of the matters requested herein. On June 12, 1990 I sent a letter (copy enclosed) objecting to the imposition of the new impact fees on any project which already had a preliminary or final plat approval. This is reasonable because in these cases the land contract has been negotiated, and the economics of the transaction has not contemplated any increases beyond the city fees which were previously customary. Further I questioned whether the imposition of these fees on Park Place, which is in the CMUD and therefore pays an additional ad valorem tax for the purpose of paying for utility services, was a valid and fair governmental assessment, or might in fact be a case of duplication of taxation. I was advised later by the City staff that Park Place was to be subject to the new impact fees but that a study was to be made of how those fees might be modified for land in the CMUD. Now that I am considering taking over the Heartz Rd. construction project, which involves the construction of both water and sewer lines at our cost, which are distribution lines sized in excess of the size required to serve the Park Place Addition, I am even more strongly of the opinion that the Park Place/Heartz Rd. development should not be subjected to the new impact fees. I feel it is in the city's best interest to have us build these larger utilities to serve future development. In this way Park Place is already paying its "fair share" of the City's infrastructure costs, and should be "grandfathered" from the new impact fees. Also you should be aware we are not requesting any reimbursements from the CMUD for the cost of any utilities in Heartz Rd. per se. Mr. Alan D. Ratliff- Page 3 In our meeting of April 27, 1990 we discussed the possibility of using the electric distribution line poles which are to be constructed along Heartz Rd. for the additional purpose of suspending street lighting, in lieu of building separate street lights. The City staff subsequently looked into this along with Texas Utilities, and I have enclosed a letter from Texas Utilities indicating acceptance of this concept by the Texas Utilities and the City staff, subject to final determination of the number of lights needed. The drainage facilities being constructed in Park Place and in Heartz Road deliver storm drainage into a recorded drainage easement which is for the benefit of ABQDC, the Parks of Coppell Joint Venture and their successors and assigns (the "Mutual Drainage Easement"), a copy of which was delivered to the City with the Park Place plat application, and again on April 27, 1990. The Mutual Drainage Easement is located generally along the east side of Heartz Rd. and to the north of the Park Place Addition. The storm water drainage from Park Place and Heartz Rd. is planned to be discharged into the already existing interim earthen channel which is in the Mutual Drainage Easement, and which ultimately flows into public drainage ways which terminate into Denton Creek. My agreement to take over the construction of Heartz Rd. is conditioned upon the approval by the City of the matters listed herein. To facilitate the development of the Park Place Addition and the construction of Heartz Rd., the purpose of this letter is to document the City's approval, and to the extent necessary the CMUD's approval, of these matters. We hereby request the City's written confirmation of the following: 1. That the preliminary plat for Park Place and the final plat for Heartz Rd., both previously approved by the City, are still valid and in full force and effect and shall be until 12/31/90, notwithstanding any change in the ownership of the land comprising the Heartz Rd. right-of-way. Prior to recording the Heartz Rd. plat, we will obtain any necessary signatures from ABQFSB, the new owner. 2. That the Park Place Addition is exempted from any assessment by the City for the improvement costs associated with the future widening Sandy Lake Rd., provided that the final plat for the Park Place Addition includes the dedication of a 25' wide strip of land for the widening of Sandy Lake Rd. 2. Conceptual approval of the above described system for providing sewer and drainage services to the Park Place Addition. We understand that the City must complete its review and approval the final engineering documents for such facilities, which were submitted to the City on August 22, 1990. 3. Approval by the City and the CMUD of the Dowdey Heartz Plans; and agreement that the construction of the public facilities reflected thereon shall be subject only to the inspection by the City; and that the only governmental fees payable in connection with Heartz construction shall be the normal City inspection fee and street light prepayment. 4. Agreement by the City that the Park Place Addition will not be required to pay the recently approved water and sewer impact fees, provided the Heartz Rd. construction reflected by the Dowdey Heartz Plans is completed on or before issuance of any building permits in Park Place. Mr. Alan D. Ratliff - Page 4 5. Approval by the City of using electric distribution line poles along Heartz Rd. for the purpose of suspending street lighting, subject to final determination by the City of the number of lights needed. 6. That the Mutual Drainage Easement may be used to provide storm drainage discharge points for Heartz Rd. and for the Park Place Addition, provided the necessary modifications to grades and geometrics are made within the Mutual Drainage Easement to accommodate the drainage facilities of Park Place and Heartz Rd. 7. That the construction reflected on the Dowdey Heartz Plans, plus the construction of electric distribution lines and street lighting, is all of the requirements of the City for the construction of Heartz and its associated utilities, that there are no further special requirements imposed by the City on this project, and that the City shall accept the construction of Heartz Rd. and its associated utilities as completed upon the performance of this work in a workmanlike manner and in conformity with the normal city standards. If the City confirms that the above statements correctly reflect the City's position, please so indicate by an authorized signature in the space provided below. If you have any questions, please let me know. I need to have these written confirmations no later than September 12, 1990. Thank you for your consideration. Sincerely, Univest Development Company Michael R. Allen, President ACCEFrED AND AGREED: CITY OF COPPEI~I,: By: Date: Alan D. Ratliff, City Manager COPPELL MUNICIPAL UTILITY DISTRICT NUMBER 1 (to the extent of its interest): By' Date: cc: Dan Dowdey and Associates, Consulting Engineers Richard Dooley ar/abq/8.23.90