Coppell Trade-CS030521PANATTO N 1
May 21, 2003
Ms. Andrea Roy
Economic Development Coordinator
The City of Coppell
255 Parkway
P.O. Box 9478
Coppell, Texas 75019
Dear Andrea:
Thank you for your time in our meeting this week to discuss the 40 acre parcel on Sandy
Lake Road in Coppell (known as 756 Sandy Lake Rd.). In follow up to our discussion, I
wanted to summarize some of the critical issues that i am faced with in developing this
site. As we discussed, site development costs and dirt work costs are a critical aspect of
any project when dealing with industrial space. As most of developers vertical costs, i.e.
tilting walls, roofs, slabs, etc., are similar, dirt costs are the primary variable cost which
enable a developer to effectively compete within the marketplace. Accordingly, as
Coppell is a very dynamic and competitive market, it is critical that these costs for
developing this site be in line with those of my competitors so that I can offer a similar
economic package to potential users. Thus, some of the critical aspects that I have
discovered in my due diligence on this property are as follo~vs:
There is a significant amount of topography on this property which precipitates
moving approximately 185,000 cubic yards of dirt to balance the site. The costs
and associated costs with balancing this site come out to approximately $500,000.
This site has extensive drainage issues. Accordingly, the developer is going to be
required to run some type of open drainage and/or box culvert scenario through
the property so as to drain the property. The estimated cost at this time to do this
is approximately $600,000.
Additionally, related to drainage, the adjacent property owner to the north and
west, which this property would drain on to, is requesting a significant sum to
accept the drainage based on the incremental costs of the off flow which this
property adds to the overall sizing of the pipe on his property. This cost at this
time is estimated at approximately $200,000.
PANATIONI DEVELOPMENT COMPANY, LLC I 5950 Berkshire Lane, Suitc 500 ' Dallas, TX 75z25 ~ Tel z14/37o-9ooo ' Fax zi4/37o-9ooi
Currently an 8 inch sewer line runs diagonally through the northwest comer of
this property. To relocate and demolish the existing line is a cost estimated at
approximately $130,000.
Impact Fees are currently estimated at approximately $286,000.
Building Inspection Fees are currently estimated at approximately $94,000.
Planning and Zoning Fees are currently estimated at approximately $3,900.
Tree removal and tree mitigation is another significant item on this site. As a tree
survey to date has not been done, it can be seen with a general perusal of the site
that there are a significant number of mature protected trees on the property.
Accordingly, the developer would ask that there would be some relief relative to
tree mitigation, i.e. excepting trees that might fall into drainage/detention areas
and trees that fall within the actual building pad on the site. At current, the cost
of simply removing the trees is estimated somewhere between $80,000-$100,000.
This does not include mitigation of trees through planting or mitigation fees
charged by the City.
Based on the initial site plan, a road complete with utilities to provide access
north/south through property will need to be constructed at a projected cost of
approximately $350,000.
In general, it can be seen that this site does in fact have significant cost issues that are
precipitated by any type of development. As this is an industrial site based on the
location, zoning and surround uses, it is imperative that a developer, to be successful in
developing this site, have some assistance in mitigating these costs from the City in the
way of incentives, rebates, etc. I would ask that the Council work with me so that we
might effectively transform this site into a mutually beneficial project for both parties.
Sincerely,
Partner
AS/tt