Agenda

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15.

City Council Regular Meeting

Meeting Date:

04/16/2024

BACKGROUND

Ashton San Antonio Residential, LLC is the developer of the Saddlebrook Residential Development located on the north side of Lower Seguin Road approximately 4,800 feet east of FM 1518. The developer is seeking approval of multiple agreements with the City.

The developer is also requesting a Reimbursement Agreement associated with the construction of Public Improvements. The developer is constructing water, drainage and conduit improvements not required by Code, but are beneficial to the City to be constructed at this time. The City would reimburse them for the cost of those improvements above what is required.

The developer is seeking a Roadway Capital Recovery Offset Agreement to receive credit for constructing Redbud Canyon, the extension of FM 3009 as allowed per the City's Roadway Impact Fee Ordinance.

Finally, the developer is constructing a lift station with excess capacity beyond what is needed by the developer. The agreement assigns the excess capacity to the City and obligates the City to pay the pro-rata cost for them. The cost associated with the Pro-Rata Agreement is $1,387,149.75. The developer of the Carmel Ranch Subdivision had their plats approved in anticipation of utilizing some of this capacity for their project which is approximately 127 lots. It is assumed the City will sell 127 equivalent development units (EDUs) to them at a total cost of $242,990.37. Should the City not need the remaining excess EDUs some of those could be sold in the future and cover the cost of the lift station.

The developer has also asked to be able to enter into a subdivision improvement agreement to allow two of their plats to be filed prior to acceptance of public improvements. One is the lot for the future lift station but the other has lots for residential homes. Generally, past direction from Council was not to allow platting of residential lots prior to acceptance of all public improvements so as to not potentially impact future home buyers. The developer has indicated they would be willing to only allow transfer of lots prior to acceptance of the public improvements to the builder (a different related corporation is the property owner). If staff is willing to allow this, an amendment to the motion would need to be added as part of approval. The developer would also be required to post a surety for the cost of the improvements not yet accepted.

GOAL

Provide for the orderly development of infrastructure within the City of Schertz.

COMMUNITY BENEFIT

Provide for development of infrastructure in a timely, cost-effective manner.

SUMMARY OF RECOMMENDED ACTION

Approval of Resolution 24-R-40 authorizing the City Manager to enter into agreements for Saddlebrook - Roadway Capital Recovery Offset Agreement, Reimbursement Agreement for Construction of Public Improvements and a Pro-Rata Agreement for the lift station with Ashton San Antonio Residential, LLC.

FISCAL IMPACT

The Reimbursement Agreement for improvements would be $109,769.36 from City fund balance.

The Roadway Impact Fee Credit Agreement would waive roadway impact fees of $2,153,430 for constructing the FM3009 extension.

The Pro-Rata Agreement for the lift station would cost $1,387,149.75 up front but the City would get paid back from the Carmel Ranch development and other developers over the next 5 years. This would come from Water & Sewer construction reserves initially before its repaid.

RECOMMENDATION

Approval of Resolution 24-R-40.

Attachments
Resolution 24-R-40 with attachment