Council approves Myrtle Creek development agreement to set impact-fee credits and reimbursement process
September 15, 2025 | Waxahachie, Ellis County, Texas
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The Waxahachie City Council on Monday approved a development agreement with Spur Myrtle Creek Development LP that specifies impact-fee credits and a reimbursement process for roadway, sewer and water projects constructed as part of the Myrtle Creek subdivision.
City staff explained the agreement establishes a process to reimburse the developer or grant impact-fee credits for capital projects that serve the subdivision. The agreement proposes 100% impact-fee credit for roadway improvements because the construction of roads within the development will exceed the impact-fee amount that would otherwise be collected from the subdivision. For sanitary sewer, the agreement provides an impact-fee credit of $821.75 per lot based on sewer work already installed or under construction. For water infrastructure, staff recommended collecting water impact fees now into a segregated account and reimbursing the developer after future capital projects (including a planned 24-inch water line and an elevated tank) are constructed; the agreement states the city will not reimburse or credit more than the amount collected from the developer.
Why it matters: The agreement sets the financial terms by which the city compensates or credits the developer for constructing public infrastructure that benefits the subdivision and the broader community.
Discussion and safeguards: Council members asked whether figures account for inflation and how the arrangement compares to recent impact-fee adjustments; staff said water reimbursements will be verified against actual construction costs when the developer completes the work and that collected funds will be held in a segregated account for reimbursement. The agreement also limits reimbursements to amounts actually collected from the subdivision.
Formal action: Council moved to approve the development agreement and authorized the interim city manager to execute necessary documents; the motion carried.
Implementation: Staff will monitor construction, segregate collected water impact fees, and process reimbursement or credits per the agreements terms once qualifying projects are completed and verified.
City staff explained the agreement establishes a process to reimburse the developer or grant impact-fee credits for capital projects that serve the subdivision. The agreement proposes 100% impact-fee credit for roadway improvements because the construction of roads within the development will exceed the impact-fee amount that would otherwise be collected from the subdivision. For sanitary sewer, the agreement provides an impact-fee credit of $821.75 per lot based on sewer work already installed or under construction. For water infrastructure, staff recommended collecting water impact fees now into a segregated account and reimbursing the developer after future capital projects (including a planned 24-inch water line and an elevated tank) are constructed; the agreement states the city will not reimburse or credit more than the amount collected from the developer.
Why it matters: The agreement sets the financial terms by which the city compensates or credits the developer for constructing public infrastructure that benefits the subdivision and the broader community.
Discussion and safeguards: Council members asked whether figures account for inflation and how the arrangement compares to recent impact-fee adjustments; staff said water reimbursements will be verified against actual construction costs when the developer completes the work and that collected funds will be held in a segregated account for reimbursement. The agreement also limits reimbursements to amounts actually collected from the subdivision.
Formal action: Council moved to approve the development agreement and authorized the interim city manager to execute necessary documents; the motion carried.
Implementation: Staff will monitor construction, segregate collected water impact fees, and process reimbursement or credits per the agreements terms once qualifying projects are completed and verified.
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