Sie sind auf Seite 1von 20

Page 115 of 341

MEMO Meeting Date: September 19, 2019 Prepared By: Gary Vidmar MEMO-19-0965 MEETING TYPE: Council Regular

MEMO

Meeting Date: September 19, 2019 Prepared By: Gary Vidmar

MEMO-19-0965

MEETING TYPE:

Council Regular Meeting

TITLE:

Memorandum of Understanding Between Funston Land and Timber, LLC and the Town of Leland, NC

PURPOSE:

To consider a memorandum of understanding ("MOU") between Funston Land and Timber, LLC ("Funston") and the Town of Leland in connection with the installation of new public water and sewer infrastructure in Brunswick Forest.

BACKGROUND:

Brunswick Forest is an approved Planned Unit Development ("PUD") in the Town of Leland comprised of approximately 4,670 acres. The latest approved Master Plan dated April 29, 2019, attached hereto as Exhibit A, shows a total of 3,361 residential units built to date and projects a total of 12,642 residential units when fully built out. Phases 7 and 8 together comprise approximately 716 undeveloped acres to the west of the Sunny Point Railroad.

SUMMARY:

Funston plans to develop Phases 7 and 8 beginning in 2020. To facilitate this development, Funston will first construct an extension of Brunswick Village Blvd. from its present terminus near the Sunny Point Railroad to Hewitt Burton Road, as shown on Exhibit B attached hereto. Along with the construction of the road infrastructure, Funston will install public water and sewer lines that will serve the homes in Phases 7 and 8. In addition, Funston plans to extend water and sewer lines southward along Kay Todd Road from the Brunswick Village Blvd. extension to the existing roundabout, as shown on Exhibit C attached hereto.

The construction of the street and public utilities is expected to accelerate the construction of approximately 1,790 residential units in Phases 7 and 8 over the next five - ten years. It is reasonably anticipated that the development and build out of Phases 7 and 8 will yield the following benefits to the Town:

1. The creation of an additional 1,790 residential units by fiscal year 2030/2031 thereby increasing housing availability within the Town;

2. An annual sales tax revenue increase to the Town of approximately $1,088,186 by fiscal year 2030/2031;

3. An increase to the Town’s property tax base of approximately $447,500,000 (i.e. $250,000 per/residential unit) by fiscal year 2030/2031;

4. The payment of approximately $10,671,000 in System Development Fees to the Town;

5. An increase of Town-owned park and open space located within the Town of approximately 32 acres with an estimated value of $1,600,000 (32 acres at $50,000 per acre); and

6. An increase of the employment and business opportunities within the Town.

The extension of water service will provide additional capacity to the existing water

Request for Action

Page 1 of 20

Page 116 of 341

tower and complete a loop that will improve water pressure and water service reliability to the entire Brunswick Forest PUD.

Funston owns the property on which the Project is to be constructed and is willing to assume the majority of the risk of construction in order to install the public street and water and sewer utility infrastructure. Based upon the anticipated benefits of this public utility infrastructure to the Town described herein, staff is proposing to offer Funston an economic development incentive by using System Development Fees to reimburse Funston for the cost to install the public water and sewer infrastructure. The terms of this offer are contained in the MOU attached hereto as Exhibit D.

SUPPORTING PLANS:

FINANCIAL:

REQUEST FOR ACTION:

Request for Action

The public street and utility improvements described herein are supported by the 2020 Master Plan in the following ways: (i) will provide for a diverse range of housing ownership and building types; (ii) will encourage the development of land through a coordinated system of neighborhoods; and (iii) will provide street connectivity between neighborhoods.

The MOU provides that the Town shall reimburse Funston for the cost of the water and sewer utility infrastructure described herein using System Development Fees from the Utility Fund.

Staff recommends that Council approve the MOU.

Page 2 of 20

Page 117 of 341

Page 3 of 20

EXHIBIT A

EXHIBIT A
EXHIBIT A
EXHIBIT A
EXHIBIT A
EXHIBIT A
EXHIBIT A
EXHIBIT A
EXHIBIT A
Page 118 of 341 EXHIBIT B Page 4 of 20
Page 118 of 341
EXHIBIT B
Page 4 of 20

Page 119 of 341

Page 5 of 20
Page 5 of 20

Page 120 of 341

Page 6 of 20
Page 6 of 20

Page 121 of 341

Page 7 of 20
Page 7 of 20

Page 122 of 341

Page 8 of 20
Page 8 of 20

Page 123 of 341

Page 9 of 20
Page 9 of 20

Page 124 of 341

Page 10 of 20
Page 10 of 20

Page 125 of 341

Page 11 of 20
Page 11 of 20

Page 126 of 341

Page 12 of 20
Page 12 of 20

Page 127 of 341

Page 13 of 20
Page 13 of 20

Page 128 of 341

Page 14 of 20
Page 14 of 20

Page 129 of 341

Page 15 of 20
Page 15 of 20

Page 130 of 341

Page 16 of 20
Page 16 of 20

Page 131 of 341

Page 17 of 20
Page 17 of 20

Page 132 of 341

Page 18 of 20
Page 18 of 20

Page 133 of 341

Page 19 of 20
Page 19 of 20

Page 134 of 341

Page 20 of 20
Page 20 of 20