Title
Consider/Discuss/Act on a Request by Baylor Medical Center of McKinney to Defer Collection of Roadway Impact Fees Relating to the Construction of Two Unfinished Floors of the Baylor Medical Center at McKinney located on the Northwest Corner of U.S. Highway 380 (University Drive) and Lake Forest Drive.
Summary
MEETING DATE: November 2, 2010
DEPARTMENT: Development Services - Planning
CONTACT: John Kessel, Executive Director of Development Services
Jennifer Cox, AICP, Director of Planning
Brandon Opiela, Senior Planner
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed agreement.
ITEM SUMMARY:
• The proposed agreement with Baylor Medical Center at McKinney will defer the collection of roadway impact fees relating to two additional unfinished stories of the hospital until such time as the applicant determines the exact number of hospital beds to be placed theron, and commences construction to finish out the two additional floors.
• The applicant has determined that the future demand for hospital beds in the development will exceed the initial plan for 96 beds, and will benefit from the economies of scale to expand the scope of the construction underway to add two additional unfinished floors, which could accommodate up to an additional 95 beds in the future.
• The City of McKinney Roadway Impact Fee Ordinance allows the City to collect a roadway impact fee based on the magnitude of transportation demand (development units) for a specific use. While there are a large number of uses that base development units on the square footage of a building, hospital development units are based on the number of hospital beds.
• The applicant has requested that the roadway impact fees collected for the two additional unfinished floors be deferred until the exact number of future hospital beds is determined and a finish out permit is issued for said floors. The deferred roadway impact fees will be computed based on the provisions of the Roadway Impact Fee Ordinance, then in effect, when said additional building permit is issued.
• Subsequent to the approval of this agreement, the applicant will receive a second building permit allowing for the construction of the two unfinished floors. These additional floors shall not be used for any purpose other than storage until such time as the roadway impact fees are collected and an additional building permit is issued for the finish out of the floors adding future hospital beds.
• Section 130-103 of the City of McKinney Roadway Impact Fee Ordinance, requires payment of roadway impact fees for new development within the City, which must be paid at the time of application and in conjunction with the issuance of a building permit. However, Section 130-110 of the Roadway Impact Fee Ordinance contains a provision which allows the City to enter into an agreement with a developer establishing a different time of payment of impact fees.
BACKGROUND INFORMATION:
• In March of 2009, a facilities agreement was approved by the City Council issuing roadway impact fee credits for the dedication of right-of-way for Lake Forest drive, adjacent to the Baylor Hospital site.
• The roadway impact fees for the initial building permit (4-story hospital building) were paid by the applicant in conjunction with the partial credit from the dedication of Lake Forest Drive right-of-way adjacent to the subject property, totaling $90,949.46.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A