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/ 10/21/1998 09:04 4911407 PAGE 02 <br /> 1 1 <br /> Oct. 20th, 1998 <br /> City of Centerville <br /> Park & Rec. Committee <br /> Re: Buechler Estates Development <br /> Dear Park & Rec. Committee: <br /> i <br /> As a follow -up to our meeting with the City Council last evening, please accept this lefter <br /> as a summary of our position. We had been told that the Park and Rae fees would be $950100 <br /> per lot for 5 lots, fnr a totat = $4,750.00, and we reasonably relied an those statements In all of <br /> our work done up to this point. We have incurred substantial fees already In getting the project <br /> to this stage. Had we been told up front the truth about the Park and Roe Fees, we may have <br /> scrapped this project altogether, or at least deducted the Park & Rae fees from our purchase <br /> price. It is not only us who were told that the Park & Rao fees were $ 950.00 per lot; every <br /> developer we spoke to told us the same thing, that they had never heard of the City's rlgh; to <br /> Charge up to 10% of the purchase price. Instead, we were informed of the additional fees well <br /> after the fact, and after considerable fees had already been spent by us. We feel that ':he <br /> Council is potentially being short- sighted in this matter, particularly those members that sta'ed <br /> that they would like to see the fees set at 10% of the costs of the land. You are currently <br /> receiving next to nothing in taxes on that property, even though you have some responsibilty for <br /> maintenance. We are proposing to pay $4000.00 per lot for 5 lots In Park & Roe fees. If our <br /> development was approved as we have proposed, you would not only receive $20,000.0C in <br /> Park & Rae fees, you would also have five homes paying approximately $6,000.00 per yea' in <br /> property taxes. The cow.. impact on the City of these five homes would be extremely minirlal, <br /> much less than virtually any other proposed use. In short, our development, as proposed, would <br /> be a win -win situation for both us and the City_ However, if the City insists on getting 10% of; he <br /> costs of the land in Park and Rec fees, they will lose our development (we will have to cari :el <br /> our purchase agreement or modify it), and another year will go by without the City receiving any <br /> substantial amount of taxes from that property, Instead, if our development is approved, 'he <br /> homes can go up for construction immediately, and the City should start receiving additional .ax <br /> revenues as soon as the year 2000 (1999 taxes will be for a vacant lot, regardless of how <br /> quickly construction V.ts started), We further understand your reluctance to set a preced3nt <br /> with our property, and we submit that our development will not set one that will prohibit you <br /> from collecting up to 10% in the future. We were told by everyone at the City that the foes <br /> would be $950.00 per H and based all of our work on that figure. We were substantially along <br /> in our development work when we were informed of the potential Increase in fees. We do ?got <br /> want to scrap the project, and we feel strongly that it is not in the best interests of the City to <br /> have us back out, either The City claims that it has changed or is in the process of changing its <br /> procedures in providing information to developers, so that this situation, where a developer 1aas <br /> mis- informed about the fees they would be required to pay, Cannot occur again. If that Wthe <br /> I ! <br /> f <br /> i <br />