Freeport NIP(7.6)-CS010816 MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Jennifer Armstrong, Director of Finance
From: Ken Griffin, P.E., Director of Engineering/Public Works
Date: August 16, 2001
RE: Dukes-Weeks Development
Last week Chad contacted me concerning the Duke-Weeks development and stated he 'had
been contacted by Jeff Turner, representative for Duke-Weeks, in regard to the Economic
Development Incentive Agreement executed between the City and Duke Weeks in September
2000.
The Economic Development Incentive Agreement Article 2, paragraph 2A states that the City
would provide the owner an Economic Incentive Grant not to exceed $593,936. Paragraph C,
of the same Article, states that impact fees resulting from future development, payable by the
owner to the City, shall be reduced by a credit in the aggregate total amount of $593,936.
The original recommendation for the Economic Development Grant was presented to City
Council in February 2000. Jim Witt's memo attached to that agenda item stated that the
Coppeil Economic Development Committee had made a recommendation for the City to
participate in the construction of Freeport Parkway in an amount not to exceed $593,936.
The memo goes on to state that the City will be fronting money to Duke-Weeks for the
construction of the roadway and then the City would provide no credit on the first 56% of
the development on the Duke-Weeks 140 acres, and then provide credit on the remaining
43% of the development.
The Economic Development Incentive Agreement and the information provided to Council
led me to believe that there would be actual money transferred from the City of CoppeH to
Duke-Weeks in an amount of $593,936 for the City's participation in the construction of
Freeport Parkway. However, no money actually switched hands from the City of Coppell to
the developer for our participation in the construction of the roadway. When development
began to occur on the Duke-Weeks property, because no money had switched hands, we
assessed impact fees as we would on most any development i.e., we provided 75% credit
against the impact fees because the developer had constructed Freeport Parkway.
Upon further review of the documentation and conversations with Jeff Turner, it is my
opinion that the City intended to participate in the construction cost of Freeport Parkway in
an amount not to exceed $593,936 and to provide that participation we would reduce the
impact fees on the development until such time as a credit of $593,936 had been provided to
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
the Duke-Weeks development. That comes from Article 2, paragraph 2C of the Economic
Development Incentive Agreement.
It appears that I have erroneously assessed fees on this project. During the construction of
Freeport Parkway I collected $7,200 for a water impact fee for irrigation meters for Freeport
Parkway median and on the development of Freeport IX I collected $44,520 for roadway
impact fees. The irrigation meters were part of the water line and we included the water
construction in our calculations for our participation in Freeport Parkway.
Therefore, the $7,200 collected on June 20, 2001 should be refunded to Duke Construction
LP (a copy of the receipt is attached). Also, the $44,520 collected for Freeport IX should be
refunded to Duke Realty Services LP (a copy of the receipt is attached). The total
reimbursement to the two entities is $51,720. Once this reimbursement has been made, it will
total up to $185,280 worth of credit provided to the Duke-Weeks property. This includes the
original 75% credit off the roadway impact fees of $133,560. This will still leave a balance of
$408,656 to be provided against future roadway impact fees for the development on the
Duke-Weeks property.
If you should have any questions I would be happy to discuss this with you.
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
051702
· ~ Received From
...
Duke C0n$Cru¢~o~ LP vcoPPCI00 coppell, city of
------------- ----~OICE AMOUNT DEDUCTION BALANCE
DATE INVOICE NO DESCRIPTION .00 7200.00
6-17-01 CKREQ618 DA-Freeport Pkwy Add
_ 11 17 ,..oo oo.oo
DATE. P~EASE DETACH AND RETAIN FOR YOUR RECORDS
Duke Construction LP . o.,o
600 Es= 96th Street .-. ' ':~ 44~
Suite 100 "<' '::~' ~: ' ..... AMOUNT
buiianapotu. IN46240 :'::'i': "iii~, ; ........ ":'"" ' :- ' CHECK NO. *'****'7,200.00:
.... DATE % ':- ,:
:.:~? :=.~ June 18, 2001 11917 $
':.. .:::~?' . ..:i !:'
Pay: ***************************** thousand tW6::'i~dr{di~ dollars and no cents
P^v Coppeli, City of : .:. - .?. ....
TO ~ :'"" ': ...... ' .: :':.. ',.;;' .":'.i.Z-;i..: .... :."..Z :
' .¥,..:'.'?~' i::~ i - !i'. ...... .:...: -
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· .:.:' :..,'......~..... ;:..~(,': -. .... -. ~ - ·
,'O0 ~ ~q ~?"' ~:0~ ~ ~5~: ~ ~q~ ~q~q ~"'
Duke Real~ Services LP vcoPPCI00 Coppell, City of
O^T~ .NV~CE NO OESC~PnON ,,VO.CE,_.-O_,_~T OEOUCnON e~L~CE
4-06-01 FPN009000 DA-FREEPORT IX-IMPACT . 00 56445.00
OATE 4 - 10- 01 47 TOTAL > .
NUMBER 00 56445.00
PI.EASE DETACH AND RETAIN FOR YOUR RECORDS
Duke Realty Services LP ~a.~ o~. n~
600 East 96th Street . o~1o
Suite 100
Indianapolis, IN46240 ~
DATE -¥ .-. CHECK NO. i .i.d::AMOUNT .: :
:: April 10, 2001 47 $****'56;'445.00'
Pay: "*'***'*Fifty-six thousand four hundred forty-five dOllars and no cents :. '"
PAY Coppell, City of
TO THE
ORDER OF
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