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Coppell CC 1B1-CS010116 T H E~ C I T Y 0 F COPPELL MEMORANDUM Date: To: From: Subject: January 16, 2001 / Ken Griffin, City Engim Jim Witt, City Manager l Roadway impact Fees, I~ 1 Development I have reviewed your memo of January 12, 2001, wherein you explained to me the situation regarding the Koll Development request for offsetting credits for value of improvements or value of right-of-way. After reviewing the two proposals included in the letter, I concur with your conclusion that Koll can be provided 100 percent credit against the roadway impact fees until they have exhausted their bank of $50,520. At that time, they will be assessed at the full face amount with all fees due to the City regarding roadway impact. Please proceed with the necessary paperwork to establish a bank of $50,520 for Koll development based on the information they have submitted to us as of this date. ff there is any further information or consent you need from my office, please do not hesitate to contact me. JW:kb MEMORANDUM FROM THE DEPARTMENT OF ENGINEERING To: Jim Witt, City Manager From: Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works Date: January 12, 2001 Roadway Impact Fee credits / Koll Development Agreement The developer of the Coppell Commerce Center i.e., Koll Development Company generally located between Freeport, Harmnond, and Bums has approached the City about a Development Agreement to obtain 100% offset of their Roadway Impact Fees. I have explained to them that the only mechanism in place to obtain credits is offsetting credits for value of either improvements or value of right-of-way dedicated to the City. By virtue of their platting, they are dedicating additional right-of-way along Freeport Parkway to allow for the future expansion of Freeport Parkway in accordance with our adopted Thoroughfare Plan. The amount of right-of-way being dedicated is 18,371 square feet. Based on the contract of sale provided to the City, they paid $2.75/per square foot for that property. Therefore, they are asking for a credit in the amount of $50,520. I have prepared a Development Agreement; however, I have also researched this further and discovered that they will potentially be constructing three buildings on this site. If in fact all three buildings are constructed as proposed, they would be constructing approximately 230,391 square feet of warehouse space and the associated Roadway Impact Fee for that would be $73,264. Based on current ordinances, they are allowed a 75% credit against Roadway Impact Fees for improvements or right-of-way dedicated for roads on the City's Thoroughfare Plan. In this case, the 75% credit against the Roadway Impact Fee at build-out would be $54,948. This is greater than the amount of the bank that would be established by the value of the right-of-way dedicated with the plat. While this might sound complicated, the actual intent of the Development Agreement can be handled by the application of current ordinances in a different way. In essence, Koll Development could be provided a 100% credit against their Roadway Impact Fees until they have exhausted the bank of $50,520 and at that point they would then be required to pay 100% of all future Roadway Impact Fees. When the property is finally developed, the City would have collected $22,744 in Roadway Impact Fees. That is the difference between the amount to be assessed against the property at build-out as warehouse of $73,264 minus the amount of the bank, which is $50,520. With or without a Development Agreement, the City will still collect the maximum amount that could be collected under current policies and ordinances. My recommendation, in lieu of a Development Agreement, is to establish a bank of $50,520 for the Koil Development. Then, allow a 100% credit as the property develops until the bank has been exhausted; and at that point, assess 100% against the remaining development. This is similar in nature to approaches taken on some of the Park West Commerce Center development and on the Champion development. If you concur please let me know so that I can set up the bank and process the credit against the Koll Development property. If you have any questions please feel free to contact me at your convenience. "CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"