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Gaspard ltr. re StaplesTRANSWESTERN September 10, 2002 5001 Spring Valley Road Suite 600W Dallas, TX 75244 Phone: 972.774.2500 Fax: 972.991.4247 www.transwestern.net Mr. Gary Sieb Director of Planning & Development City of Coppell 255 Parkway Boulevard Coppell, TX 75019 Re: Staples 228,250 sfB-T-S Fulfillment Center, AmberPoint Business Park, Coppell, Texas Dear Gary, Thank you for your time to discuss Transwestern's proposed Staples project at the AmberPoint Business Park in Coppell. We are excited to have been selected as the developer for the Staples Build-To-Suit project in Coppell and playing a key role in keeping this important client in your city. As we discussed in our meetings, we are on a fast-track timeline to develop our plans, obtain city approvals and commence construction in the next two weeks. We feel we have developed a plan that meets the desired needs of Staples, Inc. and that integrates very high development standards into the building design, site plan and landscape. We are requesting consideration of minor variances in your parking and landscape ordinances as discussed below. We expect this initial 228,250 sf phase of Staples Fulfillment Center will be followed by a Staples-directed expansion of up to an additional 161,750 slat some future date; however, at this time no one knows the exact size of the future expansion. Because Staples will be purchasing the facility at the completion of Phase I construction, Transwestern's future involvement is uncertain. We feel it is important to work out at this juncture as many development issues as we can reasonably determine. Because of the present Planned Development (PD-194-LI)) status of the AmberPoint development, we realize there may be some flexibility to defining specific solutions in our site plan to adapt to Staples specific requirements. We would appreciate staff's consideration of the following: Parking Ordinance- Warehouse - 1 per 1000sf At Staples request, Transwestern has provided 231 car parking spaces and 35 required truck parking spaces in the phase I building site plan. The required number of car parking spaces is 253 spaces. The deficiency is 22 spaces. Staples has provided a letter reflecting their maximum need to 231 car spaces in the initial phase of operation which will have only 11,500 sf of office and a future small mezzanine area. Additional car parking can certainly be created in the truck courts and other areas if necessary, however, we are requesting a specific variance allowing 231 Your Partner of Choice. car parking spaces in the phase I site plan. We expect that certain conditions will be placed on this variance such as restricting off-site parking, on-street parking, etc. Landscape Area - 51~949 sf provided north of phase line Staff comments received on August 30, 2002 require assurance that 51,949 sf of non-vehicular landscaping provided in phase I will also be provided in phase II. Again, Transwestern may not be involved in the phase II development, but we wish to offer a reasonable solution to this issue. Going back to last fall 2001 in developing the master plan for AmberPoint Business Park, Transwastern partnered with the City of Coppell to create a park setting that set aside an important stand of hard wood oaks by re-routing Northpoint Drive. By doing so, the tree grove at the south end of our property in Lot 2 became separated from Lot 1 where Staples is being developed. In addition Transwestern has forever preserved a good stand of hardwoods in the flood plain - detention pond area, also in Lot 2. We are requesting that consideration be given to allowing a portion of these land areas to benefit the Staples site, no greater than the prorated area that these areas serve the entire development. We have identified on our site plan the landscape area of 60,777 sf south of Northpoint Drive that will be utilized to offset present and future landscape area requirements (but not mitigation offsets) for the Staples development on Lot lA - 17.90 acres. Landscape Area - Tree miti~,ation The tree mitigation fee has been calculated at $49,100 (491 inches) as a result of the ordinance allowing a maximum 50% landscape credit for the trees removed from the site. The fact that our site has numerous large live oak trees cannot be avoided. However, these trees are on the interior of the site and not readily visible from Northpoint Drive. We recognize some reasonable mitigation is in order. Our landscape tree plan has also been handicapped by the Engineering Department restriction of planting trees on the west perimeter of the property because ora major 30" water feeder line to the Wagon Wheel elevated water tank. We would like the option to plant trees offsite rather than pay a fee that penalizes this site unfairly because of this water line easement. Again, Transwestern has been and will continue to be cooperative with the city's efforts to save trees and promote green space where possible. Use and transfer of Roadway Impact Fees to Staples One other issue not discussed by the DI~C comments is utilization of the Impact Fee credits under the AmberPoint at Coppell, L.L.C. Development Agreement with the City of Coppell. The master development, under this agreement, has $1,798,750 of credits for use to offset roadway impact fees for all planned buildings within the park. $97,944 of this credit was used for the AmberPoint One building (301 S. Northpoint/308,000 sO, and approximately $75,000 of credits will be used for the initial Staples building (228,250 sf). Please provide Transwestern with an explanation as to how to apportion and transfer roadway impact assessment credits to Staples for their future expansion. We have also calculated that there will be a surplus of roadway impact credits "in the bank" after our development is fully built out. Is there any possibility to use these surplus credits to offset other city fees, such as tree mitigation assessments? Fast-track schedule As we have discussed in the original kick-off meeting in early August with City of Coppell building officials, and more recently in the DRC meeting, Transwestem has committed to complete the Staples project by March 2003. This fast-track schedule will require quick turnaround of plan reviews and permits to achieve this target date. We will endeavor to provide complete plans to the City of Coppell for review and issuance of permit a minimum of 7 days prior to the milestone dates below. Critical to our success is the issuance of these phased permits as follows: P & Z Approval - September 19, 2002 Early grading Permit - Issued by September 20, 2002 · City Council Approval - October 8, 2002 · Vertical Building Permit - Issued by October 15, 2002 · Office Interior Improvements Permit - Issued by November 15, 2002 · Staples Early Access for racking installation- January 1, 2003 · Scheduled Final Completion and Certificate of Occupancy - March 1, 2003 · Staples Occupancy- April 30, 2003 2-Story home to be demolished on phase H Staples land Transwestern has been approached by the City of Coppell Fire Department and Police Department to utilize the former residence on ThweaffSandy Lake Road as the site for SWAT team and fire-fighting training prior to its demolition in the future. We may possibly utilize these structures for construction offices during the phase I development, and will discuss with Staples any other residual use they may have for the property. If and when this structure is ready for demolition or possible use by the City of Coppell Fire and Police Departments, we would request indemnifications from the city against any and all claims, and mitigation credits for any trees destroyed in the exercise. Gary, our hope in seeking these variances within the Planned Development process is to help Transwestem create a great Staples project that we can all be proud of, and which the City of Coppell will hold up as an example of corporate partnering and cooperative planning. We have not taken exception to any of the remaining staff comments and have asked our engineers to make corrections as requested. Thanks for any help we can receive from city staff and various building departments. Sincerely, tANSWESTERN COMMERCIAL SERVICES Development Services