Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Utility Impact Fee Credit Agreement with McKinney Ranch, LTD, for the Construction of Master Planned Water and Wastewater Utility Lines, Serving an Approximately 1,649 Acre Development (Honey Creek), Generally Located on the North Side of County Road 1006 and Between Lake Forest Drive and Hardin Boulevard
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1A: Establish regional infrastructure incentives to increase economic growth)
MEETING DATE: September 3, 2024
DEPARTMENT: Development Services
CONTACT: Gary Graham, P.E., Director of Engineering
Brandon Opiela, Business and Data Analytics Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution
ITEM SUMMARY:
• This item authorizes the City Manager to enter into a utility impact fee credit agreement with McKinney Ranch, LTD, for the construction of oversized, master planned water and wastewater utility lines serving an approximately 1,649 acre development (Honey Creek), generally located on the north side of County Road 1006 and between Lake Forest Drive and Hardin Boulevard.
• In conjunction with the development of an adjacent western neighboring property for multi-family uses, a master planned water line and master planned wastewater line is being constructed across the subject property to serve both the subject property and the neighboring property.
• The oversized water line being constructed extends approximately 12,865 linear feet and ranges in diameter from 16” to 20”. The cost difference between the required line size and the master planned line size is $1,292,146.80. This generates a water impact fee credit for 736.69 multi-family units using a ¾” meter ($1,754 per unit).
• The oversized wastewater line being constructed extends approximately 15,577 linear feet and ranges in diameter from 12” to 36”. The cost difference between the required line size and the master planned line size is $962,915.30. This generates a wastewater impact fee credit for 586.07 multi-family units using a ¾” meter ($1,643 per unit).
• The proposed agreement stipulates that these utility impact fee credits may only be utilized for the development of the neighboring property, and no future reimbursement is available for any unused credits.
• The total cost to construct the water line is estimated at approximately $5 million and approximately $10.3 million to construct the wastewater line.
• Utility impact fee credit agreements, following the standard template language, can be approved administratively. However, as proposed, the ability to transfer the impact fee credits generated for construction of the utility lines to the neighboring property requires additional language be folded into the agreement, thus requiring City Council approval.
BACKGROUND INFORMATION:
• The associated request for annexation and rezoning, as well as the associated development agreement for the subject property (Honey Creek) is tentatively scheduled for the 9/17 City Council meeting.
FINANCIAL SUMMARY:
• The developer estimates to spend approximately $5 million to construct the oversized water line and approximately $10.3 million to construct the oversized wastewater line, both of which are impact fee eligible lines.
• Upon the construction and acceptance of the utility lines contemplated within the proposed agreement, the total value of the water utility impact fee credits granted will be $1,292,146.80 and the total value of the wastewater utility impact fee credits granted will be $962,915.30.
BOARD OR COMMISSION RECOMMENDATION:
• N/A