Riverchase(3)-CS 960305March 5, 1996
Jerry Ragsdale
Republic Property Group, Inc.
8440 Walnut Hill Lane
8th Floor Lock Box 3
Dallas, Texas 75231
RE: Request for offsets and credits against Road Impact Fees
Dear Mr. Ragsdale:
Answer: 89.02% offset per Service Unit
On May 24th, 1995, the City received a request asking for offsets for future Roadway Impact
Fees for property located within the Riverchase development due to the construction of
MacArthur Bird and Riverchase Drive. Based on the ordinance in effect at the time (Ordinance
#95-685), I have made the following determination:
1. Riverchase Drive is designated as a site related facility and as such will not be considered
for any offsets. Section 17-1-12B1 states that no offsets shall be given for dedication or
construction of site related facilities.
2. MacArthur Blvd. is designated as an area related facility. However, it is not designated
in the Impact Fee Capital Improvement Plan. Section 17-1-12B6 states that offsets may be
given for the value of right-of-way and the value of constructed capital improvements for
roadways designated in the City's Thoroughfare Plan and built to City standards and accepted
by the City. Based on information provided to the City, tl~ value of the right-of-way for
MacArthur Blvd. was $1,011,850.00 and the value of the construction was $583,349.00 for
a total value of $1,595,199.00. Section 17-1-12B2 states that the amount of the offset shall
not exceed an amount equal to the value multiplied by a fraction, the numerator of which is
the impact fee per service unit due based on Schedule 2 and the denominator of which is the
maximum impact fee for new development as computed using Schedule 1. The referenced
area is in Service Area 7 and the maximum Impact Fee using Schedule 1 is $337.00 per
service unit and the Impact Fee due under Schedule 2 is $300.00 per service unit. Therefore,
the amount of the total offset would be $300 divided by $337 multiplied by $1,595,199.00
or a total maximum offset of $1,420,058.00. The actual offset per service unit would be
300/337 (89.02%). This offset would be applied to each service unit until such time as the
total offset had been exhausted.
Even though the available offset may exceed the future amount of Roadway Impact Fees, the
ordinance is very clear that there will never be any reimbursement from the City to the property
owner for the balance of the offset available once the development has been completed. The
offset also is only valid for a period of ten years.
If you should have any questions or would like to discuss this further please feel free to contact
me at your convenience.
Sincerely,
Kenneth M. Griff'm, P.E.
Assistant City Manager/City Engineer
cc: Pete Smith, City Attorney
file/kgriffin/ragsdal 1.1tr