Title
Consider and take action on a resolution approving a transportation development agreement associated with Galveston County Municipal Utility District No. 69 as it relates to conditions set forth in the City’s Master Mobility Plan and the existing Utility Agreement between the City and Galveston County Municipal Utility District No. 69 (Executive Director of Development Services)
Background:
With the approval of the Galveston County Municipal Utility District No. 69 (MUD 69) Utility Agreement (UA), and the October 2024, adoption of an updated roadway capital recovery fee ordinance, the Developer, on behalf of MUD 69, wish to enter into a Transportation Development Agreement (TDA) whereby the City shall award Impact Fee Credit to the Developer equal to the costs associated with the design and construction of certain roadways shown on the City’s Master Mobility Plan and included in the City’s Roadway CRF Capital Improvements Plans.
This development is estimated to have approximately 2,234 single family homes at buildout and will include approximately 185.2 acres of non-residential development (Commercial and Multi-Family). Assuming 2,234 single family homes are constructed, this would represent approximately $15,678,256 in Roadway Capital Recovery Fees (CRF). An estimation of non-residential Roadway CRFs is difficult to provide at this point.
This development has segments of 5 roadways that are included in the City’s Roadway CRF Capital Improvement Plan: Bay Area Blvd, Ervin St, Muldoon Pkwy, Winfield Rd, and an unnamed Collector. Within the boundary of MUD 69, the estimated cost to design and construct these segments is $43.7M (see Exhibit C in attached agreement).
It is important to note that this estimate assumes the entirety of Bay Area Blvd. and Muldoon Parkway will be constructed by the Developer. It is anticipated that Galveston County will commit $11M towards the construction of 2 lanes of Bay Area Blvd. and depending on the Developer’s schedule, the City could step in and perform design/construction of 2 lanes of Muldoon Parkway to ensure connectivity for future Fire Station 7. If Galveston County does construct Bay Area Blvd, their cost would be subtracted from the overall cost shown in Exhibit C of the contract. If the City decides to design and/or construct 2 lanes of Muldoon, Section 4B of the contract allows for the City to do this by stating “The Parties understand that the City may determine that it is necessary to proceed with the design and construction of the Project or a portion thereof prior to commencement of design by the District, or developer acting on behalf of the District…. Upon completion of the Project, the City shall then secure priority reimbursement rights and shall collect Impact Fees in an amount equal to the City’s Project Costs until the City is fully reimbursed….”.
This TDA will require the Developer to construct the impacted segments of the above roadways as the development progresses which will allow for Roadway 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 Roadway CRFs will be waived. The remaining credits would be used for the non-residential properties (Commercial and Multi-Family). As non-residential development occurs, the Roadway CRFs will be counted against the remaining credit. If all credit is issued prior to the non-residential areas being developed, then the City would impose fees on these areas at the time of development/platting. The District and Developer agree to waive any reimbursement of any remaining credit if the fees collected by the City are less than the Credit or Project Costs.
It is important to note that while this agreement currently estimates project costs higher than the Capital Recovery Fees collected, the accrued credits will be based off the actual Project Costs, not estimated.
Staff recommends approval of this agreement.
Attachments:
1. Proposed Resolution
2. Exhibit A - M.U.D. 69 Transportation Development Agreement
3. City Calculated Capital Recovery Fees Information
FUNDING
{ X } NOT APPLICABLE
STRATEGIC PLANNING
{ X } Addresses Strategic Planning Critical Success Factor #1 - Develop & Maintain our Infrastructure