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Oakbend Add/FP-CS 910124January 24, 1991 Mr. Gary Sieb Director of Planning and Community Services City of Coppell P.O. Box 478 Coppell, Texas 75019 Re: Oakhend Addition Dear Gary: As we discussed this week, following is Centex's proposal for paying assessments due for the perimeter streets of the Oakbend Addition. This arrangement is necessitated by the fact that Centex has been required by City Council action to build a portion of State Road outside the limits of our project thus resulting in a substantial financial impact. This arrangement is advantageous as it reduces the immediate cash drain on us yet does not affect the City in any way. Following is a summary of this proposal: Assessment Cost Approximate assessment for Thweatt Road: Total Construction cost for State Road (est.): Portion of State Road adjacent to Oakbend (505.06'): Portion of State Road adjacent to Lacy Tract (776.91'): $121,000.00 $180,000.00 $ 70,915.00 $109,085.00 Centex hereby proposes the following arrangement: 1) Centex will construct State Road as required at a total estimated cost of $180,000 of which $109,085 would normally be reimbursable to Centex when the Lacy tract is developed (Final cost will be determined at conclusion of construction). 2) Centex will put in escrow (per standard City procedures) $11,915.00 ($121,000.00 less $109,085.O0 for of[site street improvements along the Lacy tract) for the future expansion of Thweatt Road. 3) Centex will forego any claim on the pro rata due [rom the future developer of the Lacy tract in return for the reduction in the Thweatt Road assessment. 4) If the City of Coppell obtains funding and approval for the improvement of Thweatt Road adjacent to Oakbend within the 5 year escrow contract period and the $109,085.00 has not yet been paid by the developer of the Lacy tract, Centex will reimburse the City of Coppell up to 1/2 the estimated cost of expansion of Thweatt Road (less the amount of principal + interest already in escrow) based on the front footage of the Oakbend Addition. In return, Centex will be eligible for the refund of the $109,085.00 when the Lacy tract is developed and their State Road assessment is paid. 1660S. StemmonsFrwy.,Suite150/Lewisville, Texas75067/214-221-5556 MR. GARY SIEB JANUARY 24, 1991 PAGE 2/2 Please note that the figures above are approximate. Final determination will be made at conclusion of State Road construction. Gary, we feel that this is a fair and mutually beneficial arrangement. Based on this agreement, Centex would be able to reduce the substantial financial impact due to the offsite construction of State Road. The City will benefit because money for construction of Thweatt Road will be available for longer than the normal 5 year escrow period plus State Road will already be in place. Please forward this information to the Finance Committee of the City Council for review and keep me informed of the progress. I appreciate your cooperation on this matter and look forward to the City's response. Sincerely, CENTEX REAL ESTATE CORPORATION Derek E. Earle, P.E. Land Development Project Manager DEE/smb