12/09/2002-CC-Minutes-Work SessionMINUTES: CITY COUNCIL - WORKSHOP
DECEMBER 9, 2002
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PRESENT: Mayor Tommy Kincaid, Councilman Mike James, Councilman Jimmy Evans,
Councilman Joe Higgs, Councilman Glenn Ervin, Councilman Andy Garza
OTHERS
PRESENT: City Manager Jack Smith, City Secretary/Assistant City Manager Rose Chavez,
City Engineer Mark Owens, Code Enforcement/Building Official Danny
Cockrell, Richard Shaw, Rick Kearl
1. Mayor called Meeting to Order.
2. Discussion Regarding Tap Fees and Parking Regulations for New Apartment
Complexes.
Richard Shaw, 6403 Greshan Lane in Dallas, indicated he was president of Colonial
Equities, and they are proposing to build an apartment complex in Sanger. The final
documents have been approved to issue bonds. They only have until the 24t' of the
month to get it to closing. They wanted to talk about the tap fees and building permit
fees. He indicated it was his understanding that they have not had another project of
this size in Sanger. They have looked at other cities and the fees that they charge. The
residential fees for Single Family are higher than what other communities are getting.
They are asking for something more reasonable.
Mr. Shaw indicated they were trying to build a nice apartment complex with
reasonable rents. They needed help from the Council with these fees.
Rick Kearl indicated in researching other city fees that the City of Sanger is over 7%
higher than the average of other cities. He also indicated the parking regulations were
excessive. They can always add more parking if it is needed.
Mayor Kincaid indicated when they came in originally with this project, they knew
these fees were in place.
Mr. Kearl indicated they should have known; however, they did not realize there was
a sewer fee equal to the water fee.
Mr. Shaw indicated this has been mentioned to City staff over the past 6 months or so.
They have been told that there has not been a project of this magnitude in Sanger.
They were advised to talk with the Council about it. They realize they should have
done it before now. They did not realize they were going to get the approval. He has
spoken to the City Manager over the past months. As prudent business people they
should have done this sooner. They want to do what is right. They want something that
they can afford to do.
Councilman Ervin asked what this project would cost in the City of Denton.
Mr. Kearl indicated approximately $2909000.00. Sanger's fees will be over $300,000.00.
Discussed the fees from other cities.
Mr. Shaw indicated that inally they will pay the City and School taxes of about
$160,000.00 per year. They will get tax credits on the development. They will sell the
tax credits to larger corporations to get equity on the property.
The units will be priced based on the individual income of the families. They figure the
median income is about $25,000.00 to $40,000.00 per year.
Councilman James asked how the City will value this property as far as tax value.
Mr. Shaw indicated to his knowledge, the property would not be assessed differently
than any other property.
Discussed the effect this project will have on taxes. The value will probably be 8 to 9
million dollars.
Councilman James asked if they anticipated building this all at once, or if they intended
to build in phases.
Discussed the City of Denton's fees and how they are calculated.
Lengthy discussion regarding the tap fees.
Discussion regarding parking and landscape issues.
Discussion continued regarding the amount of funds invested in this project thus far.
Discussed risks involved.
Mr. Shaw indicated they will stay involved in the project for a minimum of fifteen
years.
Councilman James asked if the property had already been purchased for this project.
Mr. Shaw indicated it is under contract.
Discussion continued.
Council indicated to put this item on the next agenda for action.
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3. Meeting Adjourned.
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ATT TO
ayor T my Kincaid
Rosalie Chavez, City