TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Peter Fernandez, PE, Public Works Director
SUBJECT:
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Amending the Lone Oak Road Reimbursement District.
Ward(s): Ward 4
Councilor(s): McCoid
Neighborhood(s): South Gateway
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ISSUE:
Shall Council adopt Resolution No. 2018-24 to amend the Lone Oak Road Reimbursement District to collect funds for reimbursement of costs associated with constructing Lone Oak Road, SE between Muirfield Avenue SE and Rees Hill Road SE?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2018-24 to amend the Lone Oak Road Reimbursement District to collect funds for reimbursement of costs associated with constructing Lone Oak Road, SE between Muirfield Avenue SE and Rees Hill Road SE.
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SUMMARY AND BACKGROUND:
Following a public hearing conducted on January 22, 2018, Council adopted Resolution No. 2018-08 approving the formation of the Lone Oak Road Reimbursement District. The District collects funds for reimbursement of the developers’ costs for constructing Lone Oak Road SE between Muirfield Avenue SE and Rees Hill Road SE.
On February 12, 2018, Council adopted a motion to reconsider the decision to approve the formation of the District. On March 26, 2018, Council conducted a public hearing reconsidering the Lone Oak Reimbursement District. After closing the public hearing, deliberations were conducted on May 14, 2018.
At the May 14, 2018 meeting, Council adopted a motion amending the District to:
Remove the East Area and platted but undeveloped lots in the Creekside Area from the District Boundary.
The East Area receives secondary benefit from the Lone Oak Road construction. Accordingly, the recommended methodology included a district fee in the East Area equaling 25 percent of the fee in the West Area, reflecting the secondary nature of the transportation benefit to the East Area. Removing the East Area would reduce the District fee revenue by approximately $300,000.
Removal of platted but undeveloped lots in the Creekside Area would remove approximately 50 lots from the District. Note that lots in the Creekside Area to remain in the District include: Lots 526, 527, 528, 530, and 531 from Golf Club Estates at Creekside Phase 14, and the properties that contain the Creekside Golf Course. Removal of platted but undeveloped lots in the Creekside Area will reduce estimated District fee revenues by approximately $460,000.
The amended District boundary will reduce estimated district fee revenues by approximately $760,000. Staff is recommending that district fees for the remaining lots within the amended District be changed. The City is currently considering modifications to the Transportation System Development Charge (SDC) methodology. It is expected that a revised methodology will result in greater SDC eligibility for the bridge crossing Jory Creek, which will compensate for less district fee revenue.
Staff recommends Council adopt Resolution 2018-24 to amend the Lone Oak Reimbursement District and implement the decision of May 14, 2018.
Robert D. Chandler, PhD, PE
Public Works Assistant Director
Attachments:
1. Resolution 2018-24, Amendment of Lone Oak Reimbursement District
2. Exhibit 1, District Properties Table, Amended
3. Exhibit 2, District Sub Area Map, Amended