Agenda

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City Council Regular Meeting

Meeting Date:

05/26/2020

BACKGROUND

Since 2014, the City has been in discussions with the developer of the Homestead property on how sewer service would be provided. This included approval of Resolution 16-R-96 of a Subdivision Improvement Agreement with ILF N-T Owner, LP the developer of Homestead. One of the items covered in the agreement is sewer improvements needed to serve the project and that will serve other properties. This agreement included cost sharing for the construction of the sewer lift station, sewer force main and offsite sewer improvements. The agreement was subsequently amended via Resolution 18-R-114.

The developer has been working since then to acquire necessary offsite easements. At this point, they are waiting on signatures from one property owner and have not been able to reach agreement another owner. These owners control multiple tracts. The developer is asking for assistance from the City to acquire the easements as they been unsuccessful in acquiring them all.

The current agreements obligate the City to pay up to $200,525.22 for construction of the sewer lift station and 12" force main and $125,655.30 for the offsite sanitary sewer extension. The total reimbursement is up to $326,180.52 and does not include costs of easement acquisition. The developer is obligated to bear the cost of easement acquisition.

In light of the developer seeking assistance from the City in acquiring the necessary easements, the City is proposing to enter into a new agreement with the developer to require the developer to bear the cost of the easements for the project that they are asking the City to acquire. While it appears the developer has made significant attempts to acquire the easements they have not been able to do so. After approval of the agreement, the City will attempt to reach agreement with the owner(s) to purchase the easements. If unsuccessful, staff may have to request that City Council authorize the use of the use of eminent domain.

GOAL

Provide for funding for acquisition of easements.

COMMUNITY BENEFIT

The sewer line not only serves the Homestead development, but other properties as well. The easements are needed to construct the sewer line necessary to provide additional sewer service to areas of the City.

SUMMARY OF RECOMMENDED ACTION

Approval of Resolution 20-R-52 authorizing a reimbursement agreement between the City of Schertz and the developer of Homestead for costs associated with the City acquiring the necessary easements.

FISCAL IMPACT

None. The purpose of the agreement is for the developer to bear the costs associated with the City acquiring the necessary easements.

RECOMMENDATION

Approval of Resolution 20-R-52.

Attachments
Res 20-R-52
Homestead Agreement
Sewer Easement locations