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Park West CC(4)-CS 9905191Te Ory WYh A Bs~W11Y FYru~ MEMORANDUM Date: To: From: Subject: May 19, 1999 Ken Griffin, Director Jim Witt, City Manage MJ Desigi impact FeE Works `~ i~~ Pursuant to your memo dated May 18, 1999, I concur with your recommendation regarding the allowance of a 75% roadway impact fee credit for the 16 acres of land that were part of the original 100 acre MJ Design purchase. Please process appropriate paperwork in order to allow roadway impact fee credit to be established. If you have any other questions, please do not hesitate to contact me. JW:kb MEMORANDUM V'V" FROM THE DEPARTMENT OF ENGINEERING cS~^~j U To: Jim Witt, City Manager From: Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works ~7 Date: May 18, 1999 RE: Impact Fees / MJ Design properties In May 1996, after much discussion with Mike Nuzman of M.J. Design, the City of Coppell set up a roadway impact fee credit bank with a set amount of $250,000 for the balance of the 100 acres of property originally purchased by M.J. Design. The bank was set up because credits assigned to the Park West Commerce Center were not reassigned to the M.J. Design property. The particulars of the bank was that it was specifically assigned to the eastern most 51 acres of the 67 acres of undeveloped land that M.J. Design still owned at that time. It was set up because they were in the process of trying to sell off the 51 acres and felt that they needed to offer roadway impact fee credits to be competitive with the remaining Park West Commerce property. The 51 acres of land will exhaust the entire $250,000 of roadway impact fees. Three years have now passed and M.J. Design is now trying to sell off the remaining 16 acres that they currently own. However, because of the way the original bank was established and the fact that M.J. Design never had any roadway impact fees to allocate, there is no offsetting credit to the roadway impact fee available for this 16 acres. The original Park West Commerce Center was comprised of approximately 338 acres. M.J. Design purchased 100 acres or approximately 30% of the land area. If credits were being assigned today under the resolution passed that assigns them on a prorata basis of land area, M.J. Design would be entitled to a roadway impact fee credit bank of approximately $574,000. This is 30% of the bank of $1,914,375 that was set up for the Park West Commerce Center. As has previously been stated, the bank set up by the City for M.J. Design was $250,000 or less than 1/2 of what would have been established for M.J. Designs under the current resolution. The 16 acres of land will generate no more than an offset of approximately $80,000. This $80,000 would bring the total offsetting roadway impact fees for the original M.J. Design property to $330,000 or again less than 60% of what would have been established under the current resolutions. Your letter of June 5, 1996 establishing the $250,000 credit for the M.J. Design property held out the option that on the 16 acres the City might consider other similar impact fee credits. In reviewing the land remaining in the Park West Commerce development and looking at the remaining balance of impact fee credits, it appears impossible, without multi-story office buildings constructed in the area, to exhaust the available roadway impact fee credits for the Park West Commerce Center. Therefore, my recommendation is that the City allow a similar 75% roadway impact fee credit for the 16 acres of land that was part of the original 100 acre M.J. Design purchase but not part of land that had any credits available to it. If you are agreeable to this approach and concept let me know and I will process the appropriate paperwork to insure a roadway impact feet credit for the 16-acre tract of land. If you have any questions please let me know. "CITY OF COPPELL ENGINEERING -EXCELLENCE BY DESIGN"