Northlake 635(2)-CS 960705
~/. ~~_ /_~ / ~ P.O. Box 478
~/ L~L~ Coppell, Texas 75019
The City With A Beautiful Future 21a-a82-0022
July 5, 1996
Colleen Tetnmink
WestMark Realty Advisors
1865 South Figueroa
Los Angeles, CA 90017-2545
RE: Northlake Business Park/Wrangler Drive
Dear Ms. Temminck:
This letter is written in response to your recent inquiry as to what the maximum liability for
assessments along Wrangler Drive would be for this property. As I tried to convey in our
conversation, it is very early to determine whether or not Wrangler Drive will be assessment
project. However, each time we have discussed this project with Council, there has been
discussion about Wrangler being an assessment project. Before I go into the numbers, I would
like to explain a little bit about the assessment process in Texas. Initially, to declare this project
as an assessment project, the Council will hold a public hearing. After the project is declared
an assessment project, then there would be an Engineer's estimate of cost generated. The City
then hires an appraiser to appraise each parcel of property in relationship to its value before and
after the improvements to the roadway. This will establish the benefit of the roadway to the
adjacent property, i.e., the enhanced value to the property. Once the project has been bid, the
City uses the actual bid numbers and generates the assessment for each individual parcel of
property. That actual maximum assessment is then compared to the enhanced value to the
property based on the appraiser's report. By law, the City can only assess the lesser of those
two tmtnbers.
As you can see, it is very difficult at this point in the process to determine what the maximum
exposure to [he property would be considering the fact that we do not have any appraisals of
before and after on the property and we do not have the cost estimates or the actual bid on the
project- However, I have looked at what a typical four lane undivided roadway of this type
could cost. This project also has some extensive drainage issues associated with it. Considering
those factors, it's my best estimate that the cost of this project, on an assessment basis for the
adjacent property, would be in the range of about $150 per adjacent front foot. You may recall
that when we spoke on the phone, I stated that the old escrow amounts for roads of this nature
was approximately $130 per side per front foot. I adjusted that number somewhat because of
the extensive drainage that is associated with this project.
Therefore, in summary, it's my best estimate that the maximum exposure to this property would
be in the range of approximately $150 per side per adjacent front foot. Again, I would like to
caution you that without the appraisals it's very difficult to determine what the actual assessment
could be against the property.
If you should need any additional information or clarifications, please feel free to contact me at
your convenience.
Sincerely,
dv~
K eth iff~P.E.
Assistant City Manager/City Engineer
cc. Clay Phillips, Deputy City Manager
file/k. griffin/ntlkbspk. 796