Item 4DCITY OF
SOUTH LAKE
Item 41)
MEMORANDUM
(April 15, 2014)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Approve Amendment No. 1 to the Commercial Developer
Agreement with Excel Southlake, LLC for Park Village Lot 1,
Block 1 and Lot 1, Block 2
Action
Requested: Approve Amendment No. 1 to the Commercial Developer
Agreement with Excel Southlake, LLC for Park Village Lot 1, Block
1 and Lot 1, Block 2.
Background
Information: Excel Southlake, LLC is developing the Park Village addition within
the City of Southlake. The Park Village addition is located at the
southwest corner of East Southlake Boulevard and South Carroll
Avenue. The addition will consist of 22.48 acres of commercial
development consisting of shops, restaurants and a grocery store.
The Commercial Developer Agreement includes the developer's
obligation for the construction of the public improvements only.
The developer will construct two public roadways as part of this
development; Zena Rucker Road and Tower Boulevard. The
developer will dedicate 60-feet of right of way for the purpose of
constructing 1,925 LF of pavement. Also, the developer will
dedicate the right of way necessary to widen South Carroll Avenue
and will construct the median improvements to match Scenario 3 of
the design schematic recommendations from the Kimley-Horn
study conducted in 2012 for South Carroll Avenue. Approximately
920 LF of pavement will be widened primarily to the west onto the
Park Village site to accommodate right turn deceleration lanes into
the main entrance of the Park Village development as well as onto
Zena Rucker Road. The developer will also construct all public
water, sanitary sewer, storm sewer and detention to serve this
development.
The standard Commercial Developer Agreement (CDA) was
executed on November 25, 2013. The CDA did not include any
reimbursement provisions as outlined in the Chapter 380
Item 4D
Agreement which was approved by City Council under Resolution
14-003 on February 25, 2014. The provisions will be included in
Amendment No. 1 of the Commercial Developer Agreement and
are as follows:
Up -Front Incentives as outlined in the 380 Agreement
The developer shall be reimbursed the following amounts of the
fees paid under the Commercial Developer Agreement dated
November 25, 2013. The developer is responsible for constructing
the public improvements as outlined in the original Commercial
Developer Agreement.
A. PUBLIC WORKS ADMINISTRATION FEES $37,000
B. PARK DEDICATION FEES $53,954
The Up -Front Incentives for the Public Works Fees and Park Fees
may be paid 30 days after the Effective Date of the Chapter 380
Agreement, as specified in that agreement.
The developer shall submit a written request for reimbursement to
the Public Works Department and provide supporting information
of fees paid.
C. ROADWAY IMPACT FEES $205,044
The Up -Front Incentive for the Roadway Impact Fees may be
reimbursed after the City has received payment for the fees
through the Building Permit process.
The Developer shall submit a written request for reimbursement to
the Public Works Department and provide the supporting
information of fees paid.
UP -Front Incentives Total: $295,996
Mutli-Year Incentives as outlined in the 380 Agreement
Reimbursement to the developer will begin in 2016 and shall be
paid out over 4-5 years based on performance measures being
met. Any reimbursement to the developer shall not exceed 50% of
the total tax revenue (sales and ad valorem) received each year by
the City from the development. Total tax revenue is estimated at
Item 41)
$700,000 annually. Section 5.J.iii of the Chapter 380 Agreement
outlines the payment schedule for the reimbursements to the
developer.
As a prerequisite of any program payments being made to the
developer, the developer has agreed that a minimum of one
hundred fifty thousand (150,000) square feet of Eligible
Improvements must reach substantial completion by November 1,
2014.
The following improvements shall be constructed by the developer
as outlined in the Commercial Developer Agreement.
A. CARROLL MEDIAN AND DRIVE LANE
The Program Payment Incentives are as follows for the median and
drive lane improvements - not to include the deceleration lane into
the South Carroll Avenue private drive:
• Cap One Not to exceed 100% of actual construction
costs
• Cap Two Not to exceed $237,538
The lesser of Cap One or Cap Two shall be eligible for Program
Payments as outlined in Section 5.E of the Chapter 380
Agreement.
B. ZENA RUCKER ROAD AND DECELERATION LANE
The Program Payment Incentives are as follows for the
construction of Zena Rucker Road and the deceleration lane on
South Carroll Avenue to Zena Rucker Road:
• Cap One Not to exceed 60% of actual construction costs
after deduction of Roadway Impact Fees
• Cap Two Not to exceed $44,097
The lesser of Cap One or Cap Two shall be eligible for Program
Payments as outlined in Section 5.F of the Chapter 380
Agreement.
C. TOWER BOULEVARD AND DECELERATION LANE
The Program Payment Incentives are as follows for the
construction of Tower Blvd. and the deceleration lane along
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eastbound FM1709 (Southlake Blvd.) to Tower Blvd. — not to
include the deceleration lane into the Southlake Blvd. private drive:
• Cap One Not to exceed 50% of actual construction costs
• Cap Two Not to exceed $262,144
The lesser of Cap One or Cap Two shall be eligible for Program
Payments as outlined in Section 5.G of the Chapter 380
Agreement.
D. TOWER BOULEVARD SIGNAL
Construction of the Tower Boulevard signal is subject to TxDOT
approval. The Program Payment Incentives for the Tower Blvd.
Signal are as follows for the construction of the traffic signal at the
intersection of Fm1709 (Southlake Blvd.) and Tower Blvd.,
including any median modifications along FM1709 (Southlake
Blvd.), pavement markings, and appurtenances.
The Program Payment Incentives are as follows:
• Cap One Not to exceed 50% of actual construction costs
of the signal
• Cap Two Not to exceed $118,339
The lesser of Cap One or Cap Two shall be eligible for Program
Payments as outlined in Section 5.H of the Chapter 380
Agreement.
The Program Payments shall be paid once per year within 90 days
after all ad valorem and sales taxes have been paid and received
by the City. The Developer shall submit a written request for
reimbursement for the Multi -Year Incentives to the Public Works
Department and provide the supporting information that all the
requirements outlined in the Chapter 380 Agreement have been
met.
Multi -Year Incentives Total: $662,118
Other Provisions as outlined in the 380 Agreement:
The developer shall provide a $4.75M Letter of Credit (LOC) to the
City no later than 15 business days from the Effective Date of the
Chapter 380 Agreement as outlined in Section 5X of the Chapter
380 Agreement.
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The developer shall also provide to the City a written right of
access to the Property, in a form acceptable to the City Attorney, in
the event City must draw on the letter of credit and complete
construction of the Amenities.
Financial
Considerations: Southlake Park Village drains into Critical Drainage Structure #23
and will require a fee of $6,965.35 to be paid prior to beginning
construction. ($309.83/Acre X 22.4812 Acres = $6,965.35).
The developer shall pay park fees in the amount of $53,954.88
($2,400/acre X 22.4812 Acres = $53,954.88). In addition, the
developer shall complete all common area trails and public
pathways consistent with approved site plan and City of Southlake
2030 Master Pathways and in accordance with the State of Texas
accessibility requirements.
The developer shall be reimbursed the following amounts starting
in 2016 over 4-5 years depending on performance, not to exceed
50% of the total tax revenue (sales and ad valorem) received each
year for the City from the development. Total tax revenue is
estimated at $700,000 annually. Section 5.J.iii of the Chapter 380
Agreement outlines the payment schedule for the reimbursements
to the developer.
Strategic Link: This Commercial Developer Agreement links to the city's strategy
map relative to the focus area of Quality Development by investing
to provide and maintain high quality public assets.
Citizen Input/
Board Review: N/A
Legal Review: This is the City's standard Commercial Developer Agreement
(CDA) originally drafted by the City Attorney and revised to include
the incentives from the approved Chapter 380 Agreement which
has been reviewed by the City Attorney.
Alternatives: The City Council may approve Amendment No. 1 to the
Commercial Developer Agreement or deny it.
Supporting
Documents: Location Map
Commercial Developer Agreement — Amendment No. 1
Resolution 14-003
Item 41)
Staff
Recommendation: Approve Amendment No. 1 to the Commercial Developer
Agreement with Excel Southlake, LLC for Park Village Lot 1, Block
1 and Lot 1 Block 2
Staff Contact: Robert H. Price, P.E., Public Works Director
Cheryl Taylor, P.E., Deputy Director Public Works/City Engineer
Alejandra Ayala, P.E., Civil Engineer