Regional Water System
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Preliminary Development Agreement with BD Acquisitions LLC
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SUBJECT
recommendation
Authorize execution of a Preliminary Development Agreement with BD Acquisitions LLC, a subsidiary of Lakewood Capital Group, to construct and use shoreline improvements on NTMWD property adjacent to Bois d’Arc Lake for residential purposes and authorize the subsequent execution of a Lease and Use Agreement with the future property owners association (POA) who will own the improvements as required by the Preliminary Development Agreement.
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PURPOSE
BD Acquisitions LLC is a residential property developer that wishes to construct certain improvements and to use NTMWD property adjacent to Bois d’Arc Lake for its residential development called The Peninsula and The Shores at the Peninsula. The NTMWD Bois d’Arc Lake Shoreline Management Plan allows for such improvements and provides that shoreline uses associated with planned residential developments may be authorized by separate agreements.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors authorize the Executive Director to execute a Preliminary Development Agreement with BD Acquisitions LLC and the Lease and Use Agreement required by the Preliminary Development Agreement with the future property owners association, as follows:
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Consultant: |
BD Acquisitions LLC |
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Scope: |
Preliminary Development Agreement |
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Contract Term: |
5-years |
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Committee: |
This will be an item on the September 25, 2024, Real Estate Committee meeting agenda |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
3.2 Engaged Members, Customers and Stakeholders |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☒ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• Bois d’Arc Lake (the Lake) is a water supply reservoir developed to meet the needs of the NTMWD’s Member Cities and Customers.
• Given the importance of the Lake as a significant public water supply source for the NTMWD, the NTMWD Board of Directors adopted Resolution 20-53 Authorizing the Adoption, Implementation and Enforcement of the Bois d’Arc Lake Shoreline Management Plan (the “Plan”) to protect and manage the Lake shoreline, protect and maintain water quality within the Lake, promote the safe use of the shoreline and waters by the general public, and allow for some recreational uses to support the economy of Fannin County.
• The Plan establishes guidelines and standards for public and private uses and improvements on NTMWD-owned property along the Bois d’Arc Lake shoreline.
• In December 2023, Administrative Memorandum 23-5974 authorized amendments to the Plan to reflect current administrative systems and processes, update agreement templates, and provide additional guidance to future applicants seeking approval for certain shoreline uses and improvements.
• Lakewood Capital Group is a residential property development company that owns approximately 238.02 acres through its subsidiary, BD Acquisitions LLC (the Developer).
• This residential development, called The Peninsula & The Shores at the Peninsula, is subject to rules and regulations established by The Peninsula and Shores POA (POA).
• The Peninsula and the Shores at the Peninsula residential development abuts NTMWD property at Bois d’Arc Lake. The Developer wishes to construct certain improvements on NTMWD property for use by future residents.
• The Plan provides that such improvements for planned residential developments shall generally conform to the requirements of the Plan and may be authorized through individual agreement(s).
• NTMWD has received an application package from the Developer, which includes proposed improvements that generally conform to the requirements of the Plan.
• NTMWD and its legal counsel have applied the approved agreement templates in the Plan to create a Preliminary Development Agreement to facilitate the construction of these community improvements and the use of NTMWD property by the Developer and future residents.
• The Preliminary Development Agreement requires the Developer and POA to enter into a Lease and Use Agreement with NTMWD once construction of the improvements is complete to NTMWD’s satisfaction.
• The subsequent Lease and Use Agreement must conform to the draft included as an attachment to this Preliminary Development Agreement, and this action authorizes the Executive Director to enter into that subsequent agreement with the Developer and POA.
KEY COMPONENTS OF THE PRELIMINARY DEVELOPMENT AGREEMENT
• Agreement term of 5 years.
• Authorizes the following construction activities and improvements, which shall generally conform to the NTMWD Bois d’Arc Lake Shoreline Management Plan:
o Three (3) docks with solar-powered lighting accessible to certain residents consisting of the following number of boat slips:
■ Dock 1 - 20 slips
■ Dock 2 - 20 slips
■ Dock 3 - 8 slips
o Access paths to each dock
o Shoreline erosion control structures adjacent to each dock
o Vegetation modification within defined areas and limits
o Community area consisting of a playground, tennis/pickleball court, dog park, picnic tables, cart path, and fire pit
• Annual fees to be paid to NTMWD during the initial term of the agreement as follows:
o Year 1 = $75,720
o Years 2-5 = $7,800
• List of fines that may be levied against the Developer and/or POA for certain violations, as well as additional remedies for non-compliance.
• Requirements for construction of improvements and use of NTMWD property to protect water quality and ensure compliance with the Plan.
• Requires and authorizes execution of a subsequent Shoreline Lease and Use Agreement with the Developer and the POA upon completion of construction.
• Includes defined areas in which the POA will allow residents to seek separate, future approvals from NTMWD for docks associated with individual private lots.
• Upon completion of the improvements, ownership will transfer to a future property owners association, which will be responsible for all future maintenance activities.
• The agreement will substantially conform to the attached draft.
FUNDING
No funding is requested.