Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a development agreement with Allegiance Hillview, L.P. for the reimbursement of roadway impact fees and allocation of credits associated with the construction of Heritage Trail in the Rayzor Ranch East subdivision; providing for the expenditure of funds in the amount of $1,174,766.11 and establishing remaining credits in the amount of $240,764.24; and providing an effective date.

This ordinance authorizes the City Manager to execute a development agreement with Allegiance Hillview, L.P. concerning roadway impact fees (RIF) and credits for the construction of Heritage Trail in the Rayzor Ranch East subdivision.

Key Financial Details:

• Reimbursement: The City will reimburse Allegiance Hillview, L.P. $1,174,766.11 for RIF fees previously paid between 2022 and 2024.
• Remaining Credits: An amount of $240,764.24 in RIF credits will be allocated to future building permits for undeveloped parcels (Lot 5R, Block A; Lot 1, Block F; and Lot 1, Block B) within the subdivision.

Background:

The agreement clarifies the history of infrastructure development and associated RIF credits. Allegiance Hillview, L.P. (or an affiliate) constructed segments of Heritage Trail, which are eligible for RIF credits under City Ordinance No. 2016-189. The developer is being reimbursed for fees paid before their total credit balance was fully reconciled and will receive future credits for remaining parcels. The total eligible RIF credit for the developer's construction of Heritage Trail between Panhandle and Scripture Street is $2,165,896.48.