Agenda

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11.

City Council Regular Meeting

Meeting Date:

08/24/2021

BACKGROUND

The Developer of the QT gas station and convenience store proposed to be located at the frontage road of IH 35 and Schwab road is requesting an escrow agreement to provide funding for the construction of a proposed future sewer line along Schwab Road. The Sewer Master Plan shows a sewer line ultimatley extending from Baugh Lane on the north side of the QT property, along Schwab Road, to the frontage road of IH 35. Ultimately this sewer line is proposed to be extended under IH 35. Currently, sewer flows from the Amazon and Sysco facilities, as well as the proposed QT flow to the north where they are ultimatley treated by NBU per an agreement the City has with NBU. The extension along the QT property and under IH 35 are anticipated to be needed as part of the City's ultimate sewer system, but that may change as part of the ongoing master sewer plan study.
Given that the line in question, if built by QT would not provide any benefit until the City extends the line under IH 35 and given the lack of funding for that extension, the City is comfortable entering into an escrow agreement with the developer of the QT site. The agreement requires the developer to provide funding for construction of the line for the City to use to construct the line (at such time when the line is going to be extended under IH 35). If the City does not construct the line within 10 years, the funding is returned to the developer.

GOAL

Provide for the orderly development of infrastructure.

COMMUNITY BENEFIT

This agreement provides funding from the developer for the sewer line if it is built within 10 years. There is not benefit to having the developer construct a sewer line that is not going to be used and that the city has to maintain. Also, as no design has been done, so its not entirely clear where the sewer line will need to end to be able to be extended under IH 35.

SUMMARY OF RECOMMENDED ACTION

Approval of Resolution 21 R 92 authorizing an escrow agreement associated with the anticipated sewr line along Schwab Road.

FISCAL IMPACT

The developer is providing $152,000 for the construction of the sewer line. This cost estimate has been reviewed by the City Engineer. If not used within 10 years, the funds will be returned to the developer.

RECOMMENDATION

Approval of Resolution 21 R 92.

Attachments
Res 21 R 92
Plat QT 4032
Sewer Cost
Escrow Agreement