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Freeport NIP(7.5)-CS011211Duke CONSTRUCTION December 11, 2001 Mr. Ken Griffin, P.E. Director of Engineering Public Works 255 Parkway Boulevard P.O. Box 478 Coppell, TX 75019 Dear Mr. Griffin: Jeff Tumer and I met with you several weeks ago to clarify the process by which impact fee credits that Duke accrued by building an extension of Freeport Parkway will be applied in the future to our Freeport North at Freeport Parkway development. I realized while reviewing some notes recently that I had not summarized our discussion in writing, so this letter is intended to outline our mutual understanding of the issue. Duke built the Freeport Parkway extension through an economic development incentive agreement with the City of Coppell, and that agreement, which is dated October 30, 2000, stipulated that Duke would receive impact fee credits toward future development totaling $593,936 in exchange for our construction efforts. Some questions arose during the development of our Freeport IX project regarding the allocation of the credits toward specific projects, and that prompted our meeting to discuss the process. We agreed in our meeting that the full amount of any roadway impact fees that would otherwise be due for buildings in our development will be waived until such time as the cumulative amount of the credits totals $593,936. A situation may arise in which some amount of credit remains and the roadway impact fee calculated for a new building exceeds the available credit. In such a case, the difference between the calculated fee and the remaining credit will be the amount of roadway impact fee actually due for the building. Once the balance of $593,936 in credits is exhausted, full roadway impact fees calculated according to the impact fee ordinance in effect at the time will be due for additional buildings. As of this date, Duke has completed construction on Freeport IX, the first building within Freeport North at Freeport Parkway. The full amount of the $178,080 roadway impact fee due for the building was waived according to the agreement described above, so our remaining credit balance is $415,856. Please let me know if your understanding of how we will allocate these credits in the future varies from what I have outlined herein. We look forward to working with you more as we progress with this development, and we thank you for all of your efforts to help us to this point. Sincerely, DUKE CONSTRUCTION Brook Barefoot Development Services Manager F S CONSTRUCIONyrykasa+y2$mycW giodMntlsaN31- 12- 11 -Ken Griffin- Roedney FnpeC Fee Credtdoc cc: Job File 5495 Belt Line Road Atlanta Dallas Orlando Suite 360 Chicago Indianapolis Raleigh Dallas,TX 75254 Cincinnati Minneapolis St. Louis 972.361.6700 Cleveland Nashville Tampa www.dukerealty.com Columbus