Mustang Oaks, LLC, the developer of the Ackermann Subdivision constructed 1,026.4 linear feet of a single lane of Eckhardt Road, an undivided collector roadway as part of the infrastructure constructed to serve the development.  Eckhardt Road is on the City's Roadway Impact Fee Capital Improvements Plan, and as such the City is required to provide offset/credits to the developer for this construction.  The developer can use the offsets to reduce the amount of roadway impact fees that are paid.  The amount of the offset/credit is calculated based on the number of lanes being constructed, the length of construction and the type of roadway, which impacts the amount of capacity being added to the City's system.  Roadway Impact fees are paid at the time of issuance of building permits. As the proposed agreement indicates, the value of the constructed contribution of capacity is equivalent to credits for roadway impact fees for 29 single-family units.  The City will accept the credits in lieu of payment of roadway impact fees for up to 29 of the 56 total expected homes to be built in the Ackermann Subdivision. 

The goal of the agreement being authorized by Resolution 26-R-006 is to provide for the orderly development of infrastructure within the City of Schertz.

The benefit of the provision of a roadway capital recovery fee offset credit is to provide for the development of roadway infrastructure in a timely, cost-effective manner. 

Staff recommends approval of Resolution 26-R-006 authorizing a Roadway Capital Recovery Offset Agreement with the developer of the Ackermann Subdivision for constructing over 1,000 linear feet of a lane of Eckhardt Road.

The value of the offset is $97,730.  The City is required per State Law and City Ordinance to provide this credit in exchange for the road construction.

Approve Resolution 26-R-006.