Agenda - Council - 12/13/2016 - Laserfiche WebLink

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Hageman Holdings would like to allow for quasi-public uses, such as a school or church, on their site. Although Hageman Holdings is no longer committed to said uses,they don't want to close the door on the option--in the event it comes back. At this point,PACT Charter School is still considering the Hageman Holdings site for a High School Campus.NOTE: PACT Charter is looking for about 15-30 acres. (2) consider updating the previously completed Bolton &Menk infrastructure analysis to account for the change to Legacy Christian Academy parcel, and the change to the Pearson parcel. CapStone Homes has a purchase agreement in place with Pearson Properties for roughly 90 acres of land. CapStone wishes to complete a residential development. This is a major change in forecasted land use, in the previously completed Bolton&Menk Infrastructure study. Additionally,the city wishes to convert the former Legacy Christian Academy site (Hageman Holdings)to a business park(i.e.rezone). This is also a major change in forecasted land use,in the previously completed Bolton&Menk Infrastructure study. As a result of the two major changes outlined above, staff will recommend the Bolton&Menk Study be updated to ensure proper arterial infrastructure is being planned. It should be noted, if the city was not involved with the business park discussion, this would still be staffs recommendation(for CapStone to complete an updated study). The cost to refresh the study is estimated between$5,000415,000 and would be shared with CapStone Homes(50:50). The city has dollars available in TIF Account 91 to complete this study. Digging further into this subject,the discussion of cost-share and assessments for the proposed arterial infrastructure needs to be resolved. It should be noted, the former Legacy Christian Academy site (Lot 1 Block 1)was proposed to be assigned zero assessments in the original Bolton&Menk study. Moving forward, staff anticipates that to change. The City approved a development agreement with Hageman Holdings for a school site,with access only coming from Bunker Lake Boulevard(east side of Legacy site). No access along the remainder of Bunker and Puma was needed by Legacy.Now,that the former Legacy site is being rezoned for a business park, access along all of Bunker and Puma will be needed. As a result, staff anticipates the assignment of new assessments on the west side of the former Legacy site (Hageman Holdings). Staff has discussed this situation with Hageman Holdings. Generally,Hageman Holdings is concerned. They are currently paying significant assessments for the existing infrastructure that was extended from Armstrong, down Bunker, and up Puma(to Alpine). As we know,they completed those improvements for the anticipated Legacy Christian Academy development. As part of the Legacy development,Hageman Holdings completed a development agreement and plat(and development fees)with the City. Hageman Holdings is willing to support the City's business park initiative,they are a willing seller(at a competitive price), and they are willing to have the property rezoned. However,they are not willing to take on more assessments.If that was a requirement of them supporting the new business park, they would continue sitting on their land until a developer came forward,willing to take on additional assessments. With this in mind,the city should anticipate the need to pick up the cost of new assessments on Hageman Holdings property, as a result of the new business park initiative. If the city is not comfortable with that general discussion,they should consider stepping back from this conversation now. In order to have a constructive conversation on assessments, staff believes the Bolton&Menk Study needs to be updated. This will help us better understand what financial obligation will come back to the city. At this point, staff s very preliminary estimation is$700K-$1.6M. The EDA has roughly$2.1M available (EDA Fund,Loan Fund,and County HRA). Funding Source: NA Recommendation: