Title
Presentation Regarding Request to Extend the Reunion Sales and Use Tax Reimbursement Agreement
Body
Summary and Background Information:
In 2001, the City entered into an agreement with Shea Homes, Fulenwider, Buffalo Hills Ranch, LLC, and Potomac, LLC to consolidate eight previous agreements that were primarily annexation agreements. Then in 2003 the City entered into an intergovernmental agreement with the Reunion Metropolitan District (“Reunion”) based on and supplementing the 2001 agreement.
The 2003 agreement focused on sharing sales and use tax revenue and building permit revenue generated by development within the Reunion boundaries. The purpose was to reimburse Reunion for building public improvements that the City was responsible to build. The revenue share was set at 33% of 3% sales and use tax and 33% of building permit fees. Road impact fees were to be credited to Reunion instead of the land owners. The IGA has a 20 year life that expires on January 1, 2022.
Oakwood Homes has taken over as the master developer from Shea. Representatives of Oakwood/Reunion have requested that the revenue sharing agreement be extended. The City staff need your direction on whether or not to negotiate the terms for an extension of the agreement.
The projects proposed to be funded by the extension of the agreement include:
|
Transportation Project |
Engineer’s Estimate (‘20 $) |
|
Chambers Road / North of 104th |
$ 15,670,000 |
|
112th Avenue Phase 3 |
$ 15,500,000 |
|
High Plains Parkway |
$ 14,410,000 |
|
Potomac Parkway |
$ 12,625,000 |
|
96th Avenue |
$ 15,600,000 |
|
112th Avenue Phase 2 |
$ 9,200,000 |
|
Chambers Road / South of 104th |
$ 4,567,000 |
|
Landmark Drive |
$ 6,530,000 |
|
First Creek Bridge at 96th Avenue |
$ 4,400,000 |
|
112th Avenue Phase 4 |
$ 5,100,000 |
|
|
|
|
Sub-Total Transportation |
$ 103,602,000 |
|
|
|
|
Drainage Project |
|
|
Second Creek North Outfall Channel Phase 2.1 |
$ 12,610,000 |
|
Second Creek O'Brien Canal Relocation Phase 2.2 |
$ 6,680,000 |
|
Second Creek Regional Detention Pond Phase 2.3A |
$ 9,117,000 |
|
Ragweed Draw Regional Detention Pond B |
$ 8,740,000 |
|
Third Creek Drainage Outfalls |
$ 615,000 |
|
Second Creek Channel Improvements Phase 2.3B |
$ 1,910,000 |
|
Ragweed Draw Channel Improvements |
$ 6,690,000 |
|
Second Creek Water Quality Pond |
$ 1,375,000 |
|
|
|
|
Sub-Total Drainage |
$ 47,737,000 |
|
|
|
|
Total |
$ 151,339,000 |
|
* estimated hard and soft costs |
|
While the scope of each project must be defined and details of the agreement need to be worked out, we think there are significant benefits to extending the revenue sharing agreement. It provides a funding mechanism for Reunion to build public improvements that, but for the agreement, the City would have to build. The agreement extension will allow Reunion to build the improvements on a schedule that meshes with Reunion’s development. The extension will provide for needed public improvements without the City needing to directly fund or for staff to manage the projects.
For those reasons staff recommends City Council’s direction to move forward with negotiating an extension to the revenue sharing reimbursement agreement.
Staff Responsible (Department Head): Roger Tinklenberg, Deputy City Manager
Staff Member Presenting: Roger Tinklenberg, Deputy City Manager
Financial Impact: beneficial; amount unknown
Funding Source: General Fund
Staff Recommendation:
Suggested Motion: Direct staff to negotiate the terms of extending the reimbursement agreement and enter into an executive session to instruct negotiators.