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W Sandy Lk Addn-AG040323AGENDA REQUEST FORM CO?PELL DEPT: Engineering Department DATE: March 23, 2004 ITEM #: IO/C ITEM CAPTION: Consider approval of a development agreement between Ferguson Realty Company and the City of Coppell to allow for the dedication of a drainage easement necessary for Sandy Lake Road in consideration ora 100% credit against future impact lees on thc Ferguson tract; and authorizing the City Manager to sign. GOAL(S): APPROVED BY CITY COUNCIL ON ABOVE DATE Motion to Approve M - Tunnell S - Raines Vote - 7-0 EXECUTIVE SUMMARY: Approval of the development agreement between Ferguson Realty Company and the city will allow the City of Coppell to obtain a large, necessary drainage easement from the Ferguson tract in exchange for the waiver of potential roadway impact fees against the site. FINANCIAL COMMENTS: Agenda Request Form - Revised 0204 Doc nentName: #DevAgreementFergusonqAG MEMORANDUM FROM THE DEPARTMENT OF ENGINEERING To: From: Date: RE: Mayor and City Council Kenneth M. Griffin, P.E., Director of Engineering/Public Works March 23, 2004 Consider approval of a development agreement between Ferguson Realty Company and the City of Coppell to allow for the dedication of a drainage easement necessary for Sandy Lake Road in consideration of a 100% credit against future impact fees on the Ferguson tract; and authorizing the City Manager to sign. Sandy Lake Road from Denton Tap Rd. to S. H. 121 has been under design since December 12, 2000. After the start of the design, it was decided to break the project into two parts. Section 'A' is from S.H. 121 to north Coppell Rd. and Section 'B' is from north Coppell Rd. to Denton Tap Rd. It is anticipated that Section 'A', from S.H. 121 to north Coppell Rd., will be placed out to bid and a contract awarded for construction in the fourth quarter of 2004. During the design of West Sandy Lake Rd. Section 'A', I have had several meetings with potential developers along both sides of Sandy Lake Rd. In particular, I have had numerous meeting with a proposed developer of an approximately 32-acre tract of land owned by Ferguson Realty Company. This tract of land is on the north side of Sandy Lake Rd. generally bounded on the east by Northpoint Drive and on the west by Royal Ln. While the developer has initiated meetings to discuss potential designs, the City of Coppell has also initiated several of the meetings concerning the drainage for Sandy Lake Rd. It just so happens that a large drainage system, associated with Sandy Lake Rd., discharges into an existing ditch in the Ferguson tract. It then proceeds northerly through the Ferguson tract into a pond and then spills over the pond, continuing in a northeasterly direction. The drainage discharging into the Ferguson tract is generated by the large tract of land on the south side of Sandy Lake Rd. at S.H. 121 and is generally associated with the open ditch on the west side of Royal Lane. The water is collected in that open ditch, discharged beneath Royal Lane running in an easterly direction on the south side of Sandy Lake Rd. and then crosses to the north side of Sandy Lake Rd. at the Ferguson tract. In the original design of the drainage for Sandy Lake Rd. by our consultant, the drainage concept showed that approximately 2-acres of land cutting right through the middle of the Ferguson tract would be needed to maintain the current drainage pattern. Obviously, a drainage system in that general location could render portions of the Ferguson tract undevelopable. In meetings with the CITY OF COPPELL ENGINEERING - EXCEL ~ENCE BY DESIGN" potential developer, we discussed a concept of maintaining an open channel on the north side and adjacent to Sandy Lake Rd. to the east property line of the Ferguson tract, and then proceeding in a northerly direction and discharging into the existing low on the adjacent property. I have concurred with the open channel drainage concept so long as it is maintained by the property owner and is built to be an amenity to the property. There is a very similar design concept on South Belt Line Rd. near the intersection of Lake Shore Dr. and Belt Line Rd. All the above is noted as background history to discuss the item before you this evening which is the consideration of the approval of a development agreement between Ferguson Realty Company and the City of Coppell to allow for the dedication of a drainage easement in consideration of a 100% credit against future roadway impact fees. The development agreement is structured similar to the development agreement between the City of Coppell and Amberpoint at Coppell approved by City Council on November 13, 2001. The agreement between the City of Coppell and Ferguson Realty Company establishes a value for the d,r, ainage easement. That value establishes what is,~ 'Credit Bank'. The 'Credit Bank amount is noted in the development agreement a~ The developer has indicated that an approximately 600,000 square foot building will be built on the site. Using that building size, the City is anticipating that roadway impact fees would be approximately $190,000. With the approval of this development agreement, the City would not collect the roadway impact fees; but would get the dedication of the necessary drainage easement to facilitate the construction of Sandy Lake Rd. The value of the necessary easement from the Ferguson tract is at least equal to or greater than what the roadway impact fees would be. Therefore, approval of the development agreement between the City of Coppell and Ferguson Realty Company would be in the best interest of the City of Coppell. Approval provides for a 100% waiver of the roadway impact fees, estimated to be approximately $190,000, in exchange for the dedication of the drainage easement which is estimated to be over $200,000. Staff recommends approval of the development agreement between Ferguson Realty Company and the City of Coppell and will be available to answer any questions at the Council meeting. "CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN" STATE OF TEXAS § COUNTY OF DALLAS § D V T E EI.OPMENT AGREEMENT This AGREEMENT is made by and between the City of Coppell, Texas, a Home Rule City (the "CITY"), and Ferguson Realty Company, a Texas corporation: RECITALS WHEREAS, Ferguson Realty Company is the owner of a 31.57-acre commercial tract of land located along the north side of Sandy Lake Road, more particularly described in Exhibit "A" attached hereto as (the "Ferguson Tract '); and WHEREAS, the CITY desires to acquire a drainage easement on the Ferguson Tract; and WHEREAS, Ferguson Realty Company desires to dedicate the drainage easement, more particularly described in Exhibit "B" attached hereto, (the "Drainage Easement") on the Ferguson Tract to the CITY in exchange for a credit against future roadway impact fees to be assessed the Ferguson Tract; and WHEREAS, the dedication of the Drainage Easement by Ferguson Realty Company ,;,,ill be in lieu of the City's purchase of the Drainage Easement at the future date; and WHEREAS, the CITY desires to acquire the Drainage Easement by dedication from Ferguson Realty Company in exchange for a credit against roadway impact fees to be assessed by the CITY against the Ferguson Tract Property; and NOW THEREFORE, in consideration of ten dollars ($10.00), the mutual covenants and other valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties agree as tbllows: DEVELOPMENT AGREEMENT Page 1. Ferguson Realty Company shall by plat dedicate or grant the Drainage Easement to the CITY on or before June 30, 2004. 2. Upon dedication of the Drainage Easement by Ferguson Realty Company, the CITY shall establish a credit (the "CREDIT") against future roadway impact fees to be assessed against the Ferguson Tract Property in an amount equal to the sum of Two Dollars and seventy- five cents ($2.75) times the total square feet of the Drainage Easement (per Exhibit "B" - 102,259 sq. ft.). The product of these numbers shall establish a total CREDIT bank of $281,212 ($2.75 x 102,259). All parties hereto acknowledge that the CREDIT will be applied against 100% of the roadway impact fees, however, in no event shall the CREDIT exceed the value of the established CREDIT bank. All parties hereto acknowledge that the CITY has no obligation to condemn or pay any sum of money in connection with such dedication of grant of easement for the Drainage Easement. The parties further acknowledge that if the CREDIT exceeds the amount of roadway impact fees assessed against the Ferguson Tract Property or if roadway impact fees are not assessed against the Ferguson Tract Property that the CITY shall not be liable for or be obligated to pay any such remaining credits in cash or cash equivalent to Ferguson Realty Company or its successors. NOTICE 3. All notices required by this AGREEMENT shall be addressed to the following, or other such other party or address as either par~y designates in writing, by certified mail, postage prepaid or by hand delivery: DEVELOPMENT AGREEMENT. Page 2 If intended for Ferguson Realty' Company, to: c/o Ferguson Realty Company 900 East Solitude Drive Jackson, Wyoming 83001 Phone Number: 3074733-4895 With copies to: Vic Munson 6060 N. Central Expressway, Suite 560 Dallas, Texas 75206 Phone Number: 214.237.2920 Fax Number: 214.237.2921 MC I1 Development Company, Ltd. 3811 Turtle Creek Blvd. #730 Dallas, Texas 75219 Attn: Richard L. Crow Phone Number: 214-520-7800 Fax Number 214-520-2015 If intended for CITY, to: City of Coppell, Texas City Manager P.O. Box 9478 Coppell, Texas 75019 SUCCESSORS AND ASSIGNS 4. This AGREEMENT shall be binding on and inure to the benefit of the parties to it and their respective heirs, executors, administrators, legal representatives, successors, and assigns. SEVERABILITY 5. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutionaI, the balance of this AGREEMENT shall be enforceable and shall be enforced as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. DEVELOPMENT AGREEMENT Page 3 GOVERNING LAW 6. The validity of this AGREEMENT and any of its terms and provisions, as well as the rights and duties of the parties, shall be governed by the laws of the State of Texas; and venue for any action concerning this AGREEMENT shall be in State District Court of Dallas County, Texas. ENTIRE AGREEMENT 7. This AGREEMENT embodies the complete agreement of the parties hereto, superseding all oral or written, previous and contemporary agreements between the parties and relating to the matters in this AGREEMENT, and except as otherwise provided herein carmot be modified without written agreement of the parties to be attached to and made a part of this AGREEMENT. AGREEMENT RUNS WITH THE LAND 8. The provisions of this AGREEMENT are hereby declared covenants running with the Ferguson Tract Property and are fully binding on all successors, heirs, and assigns of Ferguson Realty Company who acquire any right, title, or interest in or to Ferguson Tract Property or any part thereof including, but not limited to, MC lI Development Company, Ltd. Any person who acquires any right, title, or interest in or to the Ferguson Tract Property, or any part hereof, thereby agrees and covenants to abide by and fully perforn~ the provisions of this AGREEMENT with respect to the right, title or interest in such property. INCORPORATION OF RECITALS 9. Thc determination recited and declared in the preambles to this AGREEMENT are hereby incorporated herein as part of this AGREEMENT. DE;~LOPMENT AGREEMENT - Page 4 EXHIBIT 10. All exhibits to this AGREEMENT are incorporated herein by reference for all pm'poses wherever reference is make to the same. EXECUTED in duplicate originals this the.~ ~4~tay of~ 2004. CITY OF COPPELL, TEXAS By: (~ City Manager Ferguson Realty Company, a Texas Corporation L.C. Ferguson, Preadent // Libby Bg~,/City Secretary MC 1I Development Company, Ltd. A Texas Limited Partnership By: MCD GP, Inc. A Texas Corporation its General Partner Richard L. Crow, Vice President APPROV~I~~~: Robert G. Hager, ~t~Attorney DEVELOPMENT AGREEMENT - Page 5 CITY MANAGER'S ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF DALLAS § This instrument was acknowledged before me on the ;i~O~qtay of ~ 2004 by Jim Witt, City Manager of the City of Coppell, Texas, a municipal corporation, on behalf of said corporation. My commission Expires: I. DEVELOPMENT AGREEMENT - Page 6 CORPORATE ACKNOWLEDGMENT STATE OETF X~fi § COUNTY OF DALE-AS' § This instrument was acknowledged before me on thc ~.~ !.h day of ~"-'~{.~ C'~ \ 2004, by L.C. Ferguson, President of Ferguson Realty Company, a Texas corporation on behalf of said corporation. My Com]nission Expires: Notary Public, State of ~ '"/ STATE OF TEXAS § COUNTY OF DALLAS § This instrument was acknowledged before me on the 7 day of 2004, by Richard L. Crow, Vice President of MC II Development Company, Ltd. A Texas Limited Partnership, a Texas Corporation its General Partner on behalf of said corporation. My Commission Expires: ~,l~(o_~ary Public, Sta~e of DEVELOPMENT AGREEMENT Page 7 EXHIBIT "A-I" LEGAL DESCRIPTION OF PROPERTY BEING a tract of land situated in the John E. Holland Survey, Abstract Number 614, Dallas County, Texas, and being a part of that tract of land described in deed to Ferguson Realty Company as recorded in Volume 79085, Page 2171, Deed Records of Dallas County, Texas (D.RD.C.T.), and being more particularly described as follows: BEGIN~NING at a 5/8-inch iron rod found in the north right-of-way line of Sandy Lake Road (formerly l~m;vn as Thweatt Road, a called 50 foot right-of-way in said deed) for the common southeast corner of said Ferguson Realty tract and southwest comer of that tract of land described in deed to Latour Partners, I..P. as recorded in Volume 95197, Page 359, D.R.D.C.T.; THENCE North 89 degrees 44 minutes 00 seconds West, along said north right-of-way line, a distance of 980.12 feet to a 1/2-inch iron rod with cap stamped "IIALFF ASSOC. INC.' (hereafter referred to as "with cap") set for corner; DtENCE North 00 degrees 37 m~nutes 00 seconds West, departing said north right-of-way line, a distance of 1305.00 feet to a 1/2-inch iron rod with cap set for comer; THENCE North 89 degrees 52 minutes 00 seconds West, a distance of 218.76 feet to a 1/2-inch iron rod with cap set for comer on the southeasterly right-of-way line of State Highway 121 (variable width right- of-way); 1'HENCE North 42 degrees 52 minutes 00 seconds East, along said southeasterly right-of-way line. a distance of 112.01 feet to a 1-inch iron pipe found for the intersection of said southeasterly right-of-way line with the nortb ]/ne of the aforementioned Ferguson Realty tract and south line of that tract of land described in decd to DFW SH-121 Limited Partnership as recorded in Volume 84046, Page 4613, D.R D C.T.; THENCE South 89 degrees 52 mtnotes 00 seconds East, departing said southeasterly right-of-way line and along said north line, a distance of 825.50 feet to an ell comer on the west line of that tract of land described in deed to William F. Callejo, Trustee as recorded in Volume 80004, Page 1835, D.RD.C.T., from which point a l-inch iron p~pc found bears North 51 degrees 30 minutes 05 seconds East a distance of 0.30 feet; TIIENCE South 89 degrees 27 minutes 00 seconds East, along the common line between said Callejo and Ferguson Realty tracts, a distance of 296.30 feet to a 5/8-inch iron rod found for the common northeast comer of said Ferguson Realty tract and northwest comer of the aforementioned Latour Partners, L.P. tract; THENCE South 00 degrees 37 minutes 00 seconds East, departing said common line and along the common line between said Ferguson Realty and Latour Partners, L.P. tracts, a distance of 1387.40 feet to the POINT OF BEGINNING AND CONTAINING 1,375,154 square feet or 31.57 acres of land, more or less. DEVELOPNIENT AGREEMENT Page 8 N EXHIBIT "A-2" DEVELOPMENT AGREEMENT Page 9 EXHIBIT "B" DRAINAGE EASEMENT LEGAL DESCRIPTION BEING a tract of land situated in the John E. Holland Survey, Abstract Number 614, Dallas County, Texas, and being a part of that tract of land described in deed to Ferguson Realty Company as recorded in Volume 79085, Page 2171, Deed Records of Dallas County, Texas (D.RD.C.T.), and being more particularly described as follows: COMMENCING at a 5/8-inch iron rod found in the north right-of-way line of Sandy Lake Road (formerly known as Thweatt Road, a called 50 foot right-of-way in said deed) for the common southeast comer of said Ferguson Realty tract and southwest comer of that tract of land described in deed to Latour Partners, L.P. as recorded in Volume 95197, Page 359, D.R.D.C.T.; THENCE North 89 degrees 44 minutes 00 seconds West, along said north right-of-way line, a distance of 25.00 feet to the POINT OF BEGINNING; THENCE North 89 degrees 44 minutes 00 seconds West, along said right-of-way line, a distance of 880.00 feet to a point for comer; THENCE North 00 degrees 16 minutes 00 seconds East, departing said north right-of-way line, a distance of 75.00 feet to a point for comer; THENCE South 89 degrees 44 minutes 00 seconds East, along a line parallel to and 75.00 feet north of said north right-of-way line, 803.83 feet to a point for comer; THENCE North 00 degrees 37 minutes 00 seconds West, along a line parallel to and 100.O0 feet west of the common line between said Ferguson Realty and Latour Partners tracts, a distance of 423.45 feet to a point for comer; THENCE North 89 degrees 23 minutes 00 seconds East, a distance of 100.00 feet to a point for comer on said common line; THENCE South 00 degrees 37 minutes 00 seconds East, along said common line, a distance of 180.00 feet to a point for corncr; THENCE South 89 degrees 23 minutes 00 seconds West, departing said common line, a distance of 25.00 feet to a point for comer; THENCE South 00 degrees 37 minutes 00 seconds East, a distance of 319.6I feet to the P©INT OF BEGINNING ANq) CONTAINING 102,259 square feet or 2.35 acres of land, more or less. DEVELOPMENT AGREEMENT Page 10 3OO LEGEND FiR FOUND IRON ROD (C,M.) CONTROL MONUMENT FERGUSON REALTY COMPANY. VOL. 79085, PG. 2171 (VACANT) /--( T.P.&L. Eosement DRAINAGE EASEMENT 102,259 S.F. or 2.35 Ac. NOO'37'OO'W 423.45' POINT OF BEGINNING ~li, ~-]o ~ ~, S89'23'00'W o. I ~, i ~.~,.,"] , SOO 37 O0'E 319.61' /-25.00 ~g)- m -/ -II , ~/~ 500'37'00'E ~-~ '-'~ <c.~,~ ~ ~ ~POINT OF L~TO~ P~T~R~ ~.p ~c'~-~ ;~ COMMENm~n VOL. 95197, PG - ~ ~"'~ CALLED 40.655 '~CRES EXHIBIT 'B' DRAINAGE EASEMENT SITUATED IN THE JOHN E, HOLLAND SURVEY, ABSTRACT NO. 614 CITY OF COPPELL, DALLAS COUNTY, TEXAS FOR ~IgRGUSON RJgA.L~ COM_LPAL~ HALFF ASSOCIATES, INC. ENGiNEERS~SURVEYORS Page 1 of 1 Paula Crocker - Re: Development Agreement From: Paula Crocker To: Richard Crow Date: 3/29/2004 9:13 AM Subject: Re: Development Agreement Attached is the agreement. I will get the 3 originals in the mail for your signatures today. Please mail 2 originals back to me at City of Coppell Engineering Dept., P.O. Box 9478, Coppell, TX 75019. thanks >>> "Richard Crow" <rlcrow@myerscrow.com> 3/29/2004 8:55:44 AM >>> Paula, Will you please e-mail the agreement to my office and mail an original (3811 Turtle Creek I~lvd. #730, Dallas, Texas 75219). Thank You Richard Crow 214-§20-7800 r!crow@myerscrow.com ..... Original Message ..... From: Paula Crocker To: rlcrow~_~m_yerscrow.com Sent: Monday, March 29, 2004 8:37 AM Subject: Development Agreement The development agreement for the Ferguson tract received approval at the March 23rd city council meeting and three originals have been executed by the city manager. can mail the originals to you for your signature. Just let me know. thanks )aula crocker file://C:kDocuments%20and%20Settings~PCROCKER\Local%20Settings\Temp\GW} 0000... 3/29/2004 Ken Griffin - Re: Development Agreement Page From: To: Date: Subject: "Richard Crow" <rlcrow@myerscrow.com> "Ken Griffin" <kgriffin@ci.coppell.tx.us> 2/9/2004 5:42:39 PM Re: Development Agreement Ken, Thank you for your response. The easement will be about 2.15 acres (75' wide x 1250' long) which has a tax role value of $187,308. In addition to dedicating the easement, we are proposing to also build the channel. The channel will be grass lined with concrete at all turns and a culvert at the drive crossover. Preliminary estimates place the channel construction at $175,000 to $200,000 (excluding landscaping, which we will also install). The $192,396 is based on the anticipated fee (604,800 sq.ft/1000 x 1.06 x $300 = $192,396). Richard ..... Original Message ..... From: Ken Griffin To: rlcrow@myerscrow.com Cc: Jim Witt Sent: Monday, February 09, 2004 3:26 PM Subject: Re: Development Agreement Mr. Crow In your Development Agreement you are requesting a credit of $192,396 for a 1.22 acre drainage . easement. This works out to about $157,700 per acre or $3_.6~. per square foot. The Dallas County Appraisal District has the property listed at $87,120 per acre. Because easements are not "owned" by the City, we typically offer about ~/2 what the property is valued for easements. In this case, we would offer about $53,142 ($87120/2 x 1.22 ac) for the easement. This is slightly more than 1/4 of what is requested. Please respond as to what your request of $192,396 is based on. Is it a complete credit of the anticipated roadway fees? Thank you, Ken Griffin >>> "Richard Crow" <rlcrow@myerscrow.com> 2/9/2004 12:55:33 PM >>> Ken, Attached please find the suggested Development Agreement for the 31.57 acre Sandy Lake site. We have redlined the form sent to us by Paula Crocker in your office. Let's discuss after your review. Richard Crow 214-520-7800 CC: "Victor K Munson" <vmunson@flash.net> COl'FELL March 29, 2004 Richard L. Crow, Vice President Myers & Crow Company 3811 Turtle Creek Blvd., Suite 730 Dallas, TX 75219 Ferguson Realty Company 32- acres tract of land / Sandy Lake Rd. Dear Mr. Crow: The enclosed ( agreement was approved by City Council on March 23, 2004. Enclosed are three : agreement executed by the City Manager. Please sign the three originals and return two ong the Engineering Department. One of the originals is for your file. , If you should have any questions or need any additional information please feel free to give me a call. Sincerely, Kenneth M. Griffin, P.E. Director of Engineering / Public Works Office 972/304-3686 Fax 972/304-7041 MYERS & CROW COMPANY, LTD. July 27, 2004 Mr. Kenneth M. Griffin, P.E. Director of Engineering/Publics Works The City of Coppell P. O. Box 9478 Coppell, Texas 75019 RE: 31.57 Acres on Sandy Lake Road Dear Ken: Enclosed please find the original fully executed Development Agreement between the City of Coppell and Ferguson Realty Company. Please note that we will be dedicating the drainage easement via the plat. We appreciate your efforts on this agreement and look forward to a successful project in the City of Coppell. Sincerely, Richard L. Crow Enclosure Cc: Vic Mnnson, Ferguson Realty Company w/enclosure Dave Littleton, HalffAssociates w/enclosure Brad Copeland, LIT Industrial Texas Limited Partnership w/enclosure 3811 Turtle Creek Blvd., #730 Dallas, Texas 75219 214/520-7800 www.myerscrow.com N89'23'OO'E o.o N89'23'OO'E 25.00'- ~o, ~ 25.00' FERGUSON R[hLTY COMPANY. ~1 d'd io [~IOIJR PARTNERS, L.P. VOL. 79085, PG. 217~ mi m,m · (VACANT} I I CA~LLD 40.655 ACRES i EXISTING CITY OF COPPELL TRACT 1 ~- 20' UTILITY EASEMENT I ~l (VOL. 79074, PG. 206) 7,995 S,F. OF I " 0.1835 AoFes I I , I ~ . $'.. 50' MUTUAL ACCESS EASEMENT . . . TRACT 0 o,o ~ 8,005 S.F. OF ~t ~ ~ I~ 0.1838 AcFes o o o SANDY LAKE ROAD (CALLED 50'R~OHT-OF WAY) 5/0,,FIR~ .... 25,OO' ---~ TRACTS l& 2 EXHIBIT 'A' LEGEND MUTUAL ACCESS EASEMENT SITUATED IN THE JOHN E. HOLLAND SURVEY, ABSTRACT NO. 614 CITY OF COPPELL, DALLAS COUN FY, TEXAS FQR VERGUSON REALTY COMPANY HALFF ASSOCIATES, INC. ENGINEERS - SURVEYORS