Riverchase-3/PP-CS 861110T E R R A
November 10, 1986
Mayor & Members of the City Council
Coppell, Texas 75019
Dear Mayor & Councilmen:
We just learned today the appraisers have finished their esti-
mates of damages resulting from construction of the proposed
water storage tanks on the Riverchase MF-1 site near Sandy Lake
Road. Enclosed please find a copy of their report and our
summary of the resulting damage figures. If you have any ques-
tions, please give me a call. I do plan to attend the November
tl council meeting. Thank you.
Sincerely,
RIVERCHASE JOINT VENTURE
By Terra Land Development Co.
--~--Ja~a~er'son, President
JP/sm
Enc.
TER~.A COMPANIES
COST COMPARISON OF WATER STORAGE SITE
Riverchase Site:
Land Cost - 4 ac. @ $3.25 per s.f. (1)
Lost Tax Revenue (20 yrS.) - 4 ac. x
$960,000.00/ac. x $.56/$100 x 20 yrs.
Damages to remaining property:
Retail: 3,375,000.00(2) x 5%(3)
MF-i: 2,973,000.00(1) x 25%(3)
MF-2: 3,850,000.00(2) x 10%(3)
$566,280.00
430,080.00
168,750.00
743,250.00
385,000.00
TOTAL COST
$2,293,360.00
Alternate Site:
Land Cost - 5 ac. @ $.50 per s.f.(1)
Lost Tax Revenue (20 yrs.) - 5 ac. x
$450,000.00/ac. x $.56/$100.00 x 20 yrs.
Damages to remaining property $163,350.00(1) x 25%
Extra piping cost(4)
108,900.00
252,000.00
40,840.00
236,000.00
TOTAL COST
$637,740.00
Premium required for Riverchase location
$1,655,620.00
(1) Source - Appraisal prepared by Johns and Associates (employed by
the City of Coppell), dated September 2, 1986.
(2) Source - Appraisal prepared by Bill C Dotson, Inc , dated
February 5, 1985. ' ·
(3) Source - Letter prepared by Hunsicker & Associates,inc., dated
November 10, 1986.
(4) Source - Cost analysis prepared by Carter & Burgess · dated
July 16, 1986. , Inc ,
HUNSICKER AND ASSOCIATES, INC.
REAL ESTATE APPRAISERS · CONSULTANTS
200 TWO TURTLE CREEK VILLaGe. DALLAS. TX 75219 · {214} 526-6190
November 10, 1986
Riverchase Joint Venture
c/o Terra Land Development Company
Two Lincoln Centre, Suite 1370
Dallas, Texas 75240
Attn:
Mr. Jay Patterson
President
Re:
File # 6332; Consultation
4-Acre Water Tank Site
Riverchase Development
Coppell, Texas
Dear Mr. Patterson:
At your request, we have reviewed various documents and
reports available concerning the referenced issue for the
purpose of making a determination of the probable impact
the construction of the two water storage tanks and associated
pump station might have on the surrounding multi-family and
retail tracts in the Riverchase Development.
It is our opinion that should the four acres in question be
taken in condemnation and the two proposed water storage tanks
and attendant pump facility be developed thereon, the
surrounding tracts would suffer in market value in the
following terms:
Tract Identified
Discounted
MF-1 Tract (directly affected)
" " (loss in utility)
Total
20%
5%
254
Retail Tract s/s Sandy Lake Road,
e/s Riverchase Drive
Retail Tract s/s Sandy Lake Road,
northwest tip of Riverchase Dev.
5%;
MF-2 Tract (due south of and across
Greenbelt from 4-acre site)
10%
HARRY B. HUN$1CKER, M.A.I.
MICHAEL J. MULLIN, M.A.I,
Riverchase Joint Venture
November 10, 1986
Page 2
Our analyses and pertinent data are summarized on the
following pages together with a location map. While the
estimated range of loss in market value per tract is, in our
opinion, an appropriate measurement of loss due to the
possible encroachment, the client should be aware that due to
the various constraints limiting this report, these analysis
and conclusions were not performed within the specific
guidelines set out by the American Institute of Real Estate
Appraisers.
Respec~lly submi tld,
Ann Frame, Associate
1. City of Coppell proposes to start condemnation proceedings
to take a four-acre tract adjacent to and south of an existing
water tank site fronting on south side of Sandy Lake Road;
which site is currently situated in the Riverchase Master
Planned Development.
2. Riverchase Joint Venture has at great expense obtained,
planned and started development of Riverchase, the 600 +/-
acres situated in the floodway adjoining the west edge of the
Elm Fork of the Trinity River in the City Limits of Coppell. A
flood control district has been created for this 600 acres
which will reclaim the land for development purposes. There are
two ways to reclaim floodway land; land fill and levee system.
Riverchase is utilizing the land fill system which will result
in a sculptured master planned residential community with
attendant retail areas built around an 18-hole golf course and
Greenbelt. Valley Ranch used the levee system. The tract is
further impacted by a 380-foot wide power line easement which
bisects the property in a southwest to northeast direction.
Without the far-sightedness of Riverchase Joint Venture, this
land would have remained non-productive floodway, thereby
robbing the City of Coppell of a lucrative tax base by virtue
of the future development. Riverchase Joint Venture is to be
commended in their entrepreneurship in envisioning this
community out of what was classified a problem piece of land.
3. Riverchase will have two primary access points; from the
south along MacArthur Boulevard with access through Valley
Ranch south of Belt Line Road, and from the north along Sandy
Lake Road. Sandy Lake Road is currently one of two primary
east-west streets into the community of Coppell from 1-35E to
the east. Sandy Lake Road is currently a two-lane paved road in
need of widening and improvement. It is not known at what point
in the future the County will provide funds by way of a bond
election for this work. In our opinion, widening of this road
is a crucial factor in Coppell's future growth.
4. The following factors are Given:
a. Riverchase Development has precious little usable
Sandy Lake Road frontage and the existing water tank/pump house
facility bites into that access. The proposed expansion
program would severely extend into the Development thereby
rendering a loss in utility to those tracts with frontage along
Sandy Lake Road.
b. Development of proposed tanks on Riverchase land
south of the existing facility would Greatly detract from the
subject aesthetically and economically as follows:
(1) presents a loss in value directly attributable to
a taking of prime MF-1 land situated at the north entry to the
development, i.e., 4-acres from a developable site that could
be marketed at a higher rate due to its being located at the
entrance as opposed to an interior site. This represents a
loss in some 72 actual rentable units that might be possible
on this four acre site (based on 18 units per acre). Economy of
scale points dictates a premium for frontage sites.
(2) presents an unattractive eyesore right at the
entrance which detracts from the aesthetics of that entry.
If these two tanks are to actually be some 30 feet in height,
their long term damage can be considered to be excessive and
irrevocable.
(3) loss in utility due to additional site problems
on the part of a builder to plan around the unsightly
obstacles. However, we cannot determine or measure actual
economic loss without actual plat of sites which is not yet
available.
(4) Proposed cost of acquisition @ Market Value of
$3.25/SF of subject site versus acquisition of alternate site
at $0.50/SF equates savings of some $400,000. (It is our
opinion that the Johns & Associates appraisal report dated
9/2/86 applies an inappropriate downward adjustment of $1.15
per square foot for filling the site which is already being
done by the flood control district).
5. It is our opinion that there
options at the current time:
are three possibilities or
a. Encourage the City to see the
the proposed two tanks on the alternate
represent a savings to the citizens of
$400,0OO.
wisdom in locating
cite which would
CopDell of some
b. Worst case would be to accept the two tanks with a
trade ~or higher density in the development.
or
c. Buy out the existing tank site thereby removing an
existing hindrance and obtaining much needed 1004 frontage
along Sandy Lake Road, and enhancing the overall north
entrance.
It is our conclusion that in addition to the cost to the City
to condemn and take the four acre site in the Riverchase
Development as opposed to the alternate five acre site on
the north side of Sandy Lake Road, that Riverchase Joint
Venture will suffer additional loss in value to the
surrounding parcels from the impact of the proposed tanks as
outlined in the following breakdown:
Tracts Identified
Discounted
MF-1 Tract (directly Affected) 20~
.... (Loss in Utility) 5~
Total 25~
Retail Tract s/s Sandy Lake Road
e/s Riverchase Drive
Retail Tract s/s Sandy Lake Road
northwest tip of Riverchase Dev.
MF-2 Tract (due south or and across
Greenbelt from 4-acre site)
5%
52
102
SANDY LAKE ROAD
~tvetchase I$ Ill tile development
The cunceplual plan,
photography ant! ilh~slfat.ms are
hase will be m d~,
..:-.
Riverchase sits just four miles
from D/FW International Air-
ix~rl and is in the center of one
of the most explosive growth
areas in the Metroplex -- the
new West LBJ corridor.
RIVERCHASE
AIRPORT