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. ` <br /> Mayor and City Council <br /> February 3, 1994 <br /> Page Two <br /> alter commercial development demand. In his opinion, potential <br /> currently exists. The other developer suggested total land costs <br /> are more important for residential development than commercial <br /> development. He suggested that total land and site improvement <br /> costs cannot exceed $10, 000 per acre and make affordable housing <br /> available. <br /> In summary, the assignment of sewer development costs has a small <br /> impact on total development expense for commercial development. <br /> At an average cost of $1,400 per developable acre for Phase I <br /> Spring Creek Sewer Project, a 100 percent allocation would not <br /> deter development at some point in the future. <br /> A $1,400 expense per acre for sewer costs could deter residential <br /> development. In the opinion of some, additional residential <br /> development is a pre-requisite for new commercial development in <br /> the south. <br /> Based on comments received, the full assignment of the $1,400 per <br /> acre would not significantly affect commercial development <br /> potential. Clearly, the full assignment would have a significant <br /> impact on residential development when the sanitary district <br /> annexation fee is added to the full sewer cost allocation. <br /> Based on the information received, staff recommends a 50 percent <br /> sewer cost allocation per developable acre of land for this <br /> project. <br /> The two items attached to this memorandum accomplish that. The <br /> first authorizes the execution of an intergovernmental agreement <br /> with the Decatur Sanitary District so that the project may <br /> proceed. The second is an ordinance which amends Chapter 74 of <br /> our municipal code. That amendment allows the Department of <br /> Public Works to recover the $700 per acre cost recommended. <br />