City Council

Agenda Request

Agenda Of:

December 16, 2008

Agenda Request No:

VIII-A

Initiated By:

Patrick Walsh, P.E., Assistant City Engineer

Responsible Department:

Engineering

Presented By:

Patrick Walsh, P.E., Assistant City Engineer

Department Head:

Christopher L. Steubing, P.E.

City Engineer

 

 

Additional Department. Head (s):

                       for

Regina Morales, Economic Development  

Subject / Proceeding:

Pelec Development – Contract Amendment No. 2

Approve Contract Amendment

Exhibits:

Vicinity Map

Amendment No. 2 to the Development Contract with Pelec Development, Ltd.

Exhibit A - Plat

Clearances

Approval

Legal:

EUGENIA CANO, asst city attorney

Executive Director:

Jim Callaway

Purchasing:

N/A

Asst. City Manager:

Karen Daly  

Budget:

N/A

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

N/A

Amount Budgeted/Reallocation:  $

N/A

Additional Appropriation:  $

N/A

Recommended Action

Approve Amendment No. 2 to the Development Contract with Pelec Development, Ltd.

Executive Summary

Pelec is the developer of a significant portion of the Sugar Land Business Park.  This area is roughly bounded by Reed Road, Dairy Ashford, Cardinal Meadow Drive, and Industrial Boulevard.  In 2002, Pelec entered into a Development Contract with the City.  The contract was amended in 2006.  This contract and its amendment established certain requirements for Pelec, primarily related to construction of street and traffic-related improvements. 

 

Pelec recorded a plat entitled “Sugar Land Central Section Six” in December 2007.  This plat established the right-of-way for the extension of Julie Rivers Drive from Reed Road to Dairy Ashford (see vicinity map).  Pelec has also submitted construction plans for this extension.

 

In order to connect existing Julie Rivers Drive to its proposed extension, it is necessary to reconstruct the intersection of Reed Road at Julie Rivers.  Pelec is not required to perform this work since the intersection is outside the Pelec property and because the work is specifically exempted as a Pelec requirement in the existing contract amendment.  The City does not have plans currently within the current 5-year Capital Improvement Program to reconstruct this intersection.  Furthermore, for purposes of traffic control and savings resulting from economy of scale, it makes sense to include this intersection with the construction of the extension of Julie Rivers Drive.

 

In light of the City’s need to reconstruct the intersection, staff investigated the possibility of having Pelec include construction of the Julie Rivers/Reed Road intersection with the Julie Rivers extension.  Incentives were identified for Pelec to perform this work without any disadvantage to the City.  Thus, a mutually beneficial deal emerged. 

 

The resulting Amendment No. 2 to the Pelec contract allows for this arrangement.  In return for constructing the intersection, which saves the City an estimated $71,000, Pelec receives the following incentives:

  1. The City relieves Pelec of the requirement to construct Julie Rivers with a median.  Use of a median is unnecessary and inappropriate for this street, which serves an industrial area high in truck traffic.  An undivided street is consistent with roads in the Business Park such as Gillingham and Industrial.  Further, eliminating the median ensures a consistent cross-section with existing Julie Rivers south of Reed Road.
  2. Pelec is allowed to reduce the right-of-way for the Julie Rivers extension from 80 feet to 70 feet.  The extra 10 feet of right-of-way is no longer needed once the median is eliminated.  This right-of-way reduction is possible only if Pelec replats the property.
  3. The City releases Reserve “H6” from the requirement that Julie Rivers be constructed prior to development.  This requirement is unnecessary because this Reserve has access off of Reed Road and because the City has adequate alternate protections for ensuring the construction of Julie Rivers.

 

The contract amendment also includes various protections for the City and other parties, as follows:

  1. Development restrictions on properties along Julie Rivers are adjusted to ensure Julie Rivers is completed and to protect third party site developers;
  2. The inclusion of Cirrus as a signatory on the agreement, since Cirrus has purchased two Reserves on the plat and is thus impacted by the agreement; and
  3. A provision requiring the agreement be recorded at the County and thus run with the land.

 

Further protecting the City, it should be noted that Fort Bend County MUD No. 21 has retained surety funds for constructing the extension of Julie Rivers.  This surety is held by MUD No. 21 in accordance with an agreement between Pelec and the MUD.  It is recommended that the City Council approve this amendment to the Pelec Development Agreement.

Exhibits

 

 

 

EXHIBIT A

 

EXHIBIT A