The Dublin Economic Development Corporation has signed a letter of intent to help fund a water line project for the city associated with bringing new homes to town.
At a special called EDC meeting Tuesday, June 30, discussion took place regarding a proposed new subdivision called Emerald Ridge, owned by Brad Allen and located north of Dublin past Shamrock Apartments within the city limits.
During the meeting, Allen and his son, Joel Allen explained Phase 1 of the project would contain 43 residential homes ranging in price from $275,000 to $375,000 along with seven commercial lots on Hwy. 377.
As developer of the project, Allen is responsible for utilities, streets, water and sewer before a single home can be built. Given the increase in property taxes by changing the property from agriculture, the development is asking the city to cover getting water from the entrance of the property to the homes. The estimate for this work is $500,000, Brad said.
“Ultimately, it’s going to be up to the city. We aren’t here to overstep,” EDC President Paul Bradberry said. “This assistance is for the city of Dublin.”
“We are hoping to bring this asset to the community,” Brad said. Within Phase 1, six homes will be built immediately (with one home already committed to being sold). In Phase I, 12 homes per year are expected to be built every year.
Joel shared that they have researched beneficial options for first time home buyers and rural USDA loans with zero downpayments may be an option.
Joel shared several stats with the EDC board including an estimate of $500 to $1,000 in sales tax per year, per person for new residents.
Along with sales tax, an increase of property taxes for both the city and DISD is expected. According to estimates presented by Joel, on year 1 the city will see $30,985.14, year 2 $61,970.28, year 3-5 $93,894.37, for a 5-year total of $374,638.54 at the current tax rate.
With additional revenues such as water and sewer, the city revenue for the project over a 5-year period is an estimated $651,238.54.
Dublin ISD additional income from property taxes over a 5-year period is estimated at $434,513.89.
Director of Infrastructure and Development Cory James was present at the meeting to answer any questions about infrastructure that arose.
James did inform the board the city had identified some possible cost saving measures that could help with the project.
“If Cory comes up with savings we are all for that,” Bradberry said.
With the city already being booked with road and infrastructure projects for the next 4-6 months, the water line project would need to be bid out if it is approved, James said.
In their consideration, the EDC board looked at their own budget and reserves to see if they could aid the city with the potential $500,000 expense.
“In the budget there are ways to tighten up,” EDC Treasurer Karen Wright said. The EDC has also not touched its reserves in years, waiting for the right project to come along, Bradberry said.
“This is what economic development prays for,” Wright said.
“I think it’s an extremely good use of the funds,” EDC Executive Director Noah Cullis said.
The legality of the EDC aiding the city with the project was researched and got a nod of approval by legal counsel.
Ultimately, the EDC board unanimously agreed to fund half the project if the city moves forward. The letter of intent states that the EDC will provide $62,500 a year, over the next four years. If the project does not move forward, the EDC is not obligated.
The subject is set to be discussed by city council at their next meeting Monday, July 13 at 6 p.m.