29SC Cotton MFR Property Owner, LLC. (“Developer”) is developing a project called The Artesian Casitas, which includes construction of certain off-site infrastructure improvements (“Project”).  The city determined that the Project requires construction of an eight-inch (8”) water line within 175th Avenue.  The Developer disagreed with this determination. However, to resolve the dispute, the Developer has offered, and the city has agreed to accept, an in-lieu payment contribution payment from the Developer in the amount of $165,523.64, which shall be applied to the cost of the future construction of the water line. 

Approve the Letter Agreement with 29SC Cotton MFR Property Owner, LLC, to provide the city with an in-lieu payment for the construction of an eight-inch (8”) water line, and authorize the City Manager, or designee, to execute the agreement. (Kini Knudson, Deputy City Manager)

An in-lieu payment of $165,523.64 will be provided by the Developer to the city and will be allocated to the future construction of an eight-inch (8”) water line within 175th Avenue.

The Developer is constructing a multi-family residence, which is generally located at the southeast corner of 175th Avenue and Lower Buckeye Road.  As part of the development, the Developer is required to construct the Project, which includes construction of an eight-inch (8”) water line on the western boundary of 175th Avenue.  The city issued construction permits to the Developer for plans that did not include construction of the 8” water line. In lieu of requiring the Developer to construct the 8" water line, the city has agreed to accept a one-time payment for the Developer’s portion of the estimated cost of constructing the water line, which is expected to be needed in the future.

Staff worked with the Developer on a Letter Agreement (Attachment A) that formalizes this agreement to settle the Developer's infrastructure obligations related to the Project.