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Colleyville council waives 75% of impact fees to support redevelopment of former Hodges Automotive site
Summary
City council approved a development incentive for Shoal Creek Capital Partners to redevelop the 4.3-acre Hodges Automotive site at 6521 Colleyville Boulevard, waiving 75% of impact fees (about $422,000) after a staff presentation on projected tax and sales revenue gains.
Colleyville City Council on April 15 approved a resolution authorizing an economic development incentive agreement with Shoal Creek Capital Partners, LLC to redevelop the former Hodges Automotive site at 6521 Colleyville Boulevard.
City Manager Jared Duque told the council the developer plans about 84,000 square feet of new construction on the 4.3-acre property with an estimated total value near $13 million. Duque said the incentive would waive 75% of the project's impact fees — roughly $422,000 — and that the developer must meet four benchmarks, including spending and timeline requirements, to receive the incentive.
The incentive aims to increase annual local tax revenue and stimulate private investment. "Currently, the city receives about $1,700 a year in property taxes" from the site, Duque said. "Under the new development, we would increase that to about $33,000." Duque also said GCISD's share would rise from about $5,700 to roughly $110,000 under the proposal, and projected sales tax for the parcel at about $166,000. He summarized the long-term return: "The property, between the city and the schools, will generate about $3,650,000 over 10 years and about $9,200,000 over 20 years." Duque added the city’s payback estimate on foregone impact fee revenue is about 18 months when accounting for permit, sales and property tax revenue.
Mayor Bobby Lindemood and other council members noted the parcel has been blighted and that redevelopment has been a city priority. Council member Graves moved approval and Council member Alfonso seconded. The motion passed on a 7-0 vote.
The resolution, filed as R-25-5032, authorizes the city manager or designee to sign documents necessary to execute the agreement. Duque said impact fees addressed by the waiver fall into three categories: roads, water utility and sewer utility, and that roughly half the waived amount is related to utilities. He also noted the site’s neighbors have been engaged during negotiations and the developer agreed to architectural modifications.
The council did not receive public comment on the resolution during the public hearing portion of the item. The developer is responsible for meeting contractual benchmarks before receiving the incentive.
