Title
Consider and take action on a resolution authorizing a water capital recovery fee agreement with Starlight Homes Texas LLC, for the construction of a 24-inch water main along Landing Blvd. and Winfield Road associated with the Vida Mar Subdivision, consistent with the City’s Master Water Plan (Executive Director of Development Services)
Background:
In January 2024, City Council adopted a water capital recovery fee ordinance. The Developer of the Vida Mar Subdivision, Starlight Homes Texas LLC, wishes to enter into a Development Agreement (DA) whereby the City shall award Impact Fee Credit to the Developer equal to the costs associated with the design and construction of a 24-inch water main along Landing Blvd and Winfield Road as shown on the City’s Master Water Plan and related recommended CIP plan.
This development is estimated to have approximately 555 single family homes at buildout. This development does not have non-residential areas. Assuming 555 single family homes are constructed, this would represent $5,036,070 in Water Capital Recovery Fees (CRF) in which the City could expect to collect by the time this development is built out as each lot would be assessed a $9,074 Water CRF for the ¾-inch water meter needed for domestic service.
The cost for adding the 24-inch water main along Landing Blvd and Winfield Road is $1,276,275.25.
This DA will require the Developer to construct the 24-inch water main on Landing Blvd. and Winfield Road as the development progresses and as a result will allow for Water CRF Credits to be issued. The Developer wishes to use this credit against the residential properties which will mean that as homes are developed and sold in this area the Water CRFs will be waived. Based on the total lot count anticipated for this development, it is anticipated that all credit will be issued prior to all of the lots being developed. Once full credit is issued (approximately 140.65 credits), the City would impose fees on the remaining lots as the permits are pulled.
Staff recommends approval of this agreement.
Attachments:
1. Proposed Resolution
2. Exhibit A - Vida Mar Water CRF Credit Agreement
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{ X } Addresses Strategic Planning Critical Success Factor #1 - Develop & Maintain our Infrastructure