Thunder Rock developer asks Marble Falls for $3.39M break
The entrance to Thunder Rock at the intersection of U.S. 281 and Texas 71 south of Marble Falls. Staff photo by Dakota Morrissiey
The Marble Falls City Council is deliberating on whether or not to grant an appeal from the Thunder Rock subdivision developer for a $3.39 million break on city fees for hooking up 561 residential lots to municipal utilities.
Marble Falls charges a one-time “impact fee” to connect a residence to municipal utilities to make up for the impact the home will have on the city’s water and wastewater systems. The fee for a three-quarter-inch meter on a standard single-family home was $6,054 until May 1 of this year, when it jumped to $12,108. Under the current rate, the developer would have to pay $6.78 million for the 561 lots.
According to Marble Falls officials, developer Centurion American missed the April 30 deadline to have final plat approval for three build phases that would include the 561 lots, making it ineligible for the old impact fee rate. Centurion American’s appeal is a request to the city to allow Thunder Rock to pay the old impact fee rate, which would save the developer about $3.39 million.
Thunder Rock is being developed in the northwest corner of the intersection of U.S. 281 and Texas 71 south of Marble Falls.
The council did not make a final decision on the appeal during its regular meeting on Tuesday, Aug. 6, instead choosing to take more time to analyze the proposal before voting at a later date.
“I get it, it’s revenue that the city is forgoing, but we’re so over budget on that project,” said Centurion American Vice President of Development Rob Romo during the Tuesday meeting. “It’s not like we’re trying to sneak anything in here. We’re in a bind. The city has been a great partner, but we just need some help.”
Romo explained that they had budgeted for the old impact fees and struggled to secure additional funds from their lender, slowing momentum on the project.
Marble Falls Director of Development Services Kim Foutz presented Centurion American’s appeal to the council on Tuesday and stated the city did not contribute to the developer missing the April 30 deadline.
“(The city) processed and got everything done before the deadline,” Foutz said.
The council entered an executive session to consult with City Attorney Josh Brockman-Weber on potential paths forward.
After the council emerged, a unanimous vote was taken to conduct further research on the matter before making a decision.
“Unless something comes out that we are not aware of, (the developers) really have no legal precedent for anything. It is a request,” Mayor Dave Rhodes told DailyTrib.com following the decision. “In all honesty, we’re not in favor of (granting the appeal). I don’t think anyone is in favor of it, but any business by its very nature is some kind of a negotiation. Good business is good relationships. So, even if we don’t make a change, we still give them their day more than just here.”
The Thunder Rock subdivision will have an estimated 1,900 homes, 500 multifamily units, 75,000 square-feet of retail and commercial space, and a sports complex when completed.
9 thoughts on “Thunder Rock developer asks Marble Falls for $3.39M break”
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For once I agree with Rodduc. Thunder Rock developers knew about the May 1 deadline and did nothing. They will lose nothing, since they will recoup that money when they sell the property.
Really? The developer didn’t budget for the published fees for our most scarce Hill Country resource, and now they “want help”….good grief. That takes some set….pay up. With late fees.
Thunder Rock should have to pay every penny of the fee. Has the council considered the impact that big of development will have on the infrastructure? There’s only one road into Marble Falls. We think the traffic on 281 is ridiculous now just imagine how bad the traffic will be. You know folks, water will not last forever.
The developers are going to make a lot of money on this. Their price break only puts the burdens on current taxpayers.
Questions:
How long will it take the City to recoup the loss by collecting sales tax and RE taxes from the completed project?
Will the about $1,900 per home make much difference in the sales price of the homes.
Are the other developers asking the same concessions? Will they if this granted?
Many of the homes being built there or those which have been built have been reducing the prices. The impact fees can be rolled into the costs. In answer to your question about other developments getting concessions. Two in the last couple months have been allowed the old rates. All supposedly due to staff errors or things that happened out of the developer’s control..
Bottom line is this. The city approved an increase in connection costs. It needs to adhere to it. It was bad enough they let two other companies get a break last month. The developer can absorb the increase in fees via raising home costs. If the mayor intends for his gold star waste treatment plant to come to fruition they need these fees.
Would any of us get that break? No. Then why would they? Their lack of attention to detail isn’t anyone’s problem but theirs.
If the necessity to raise the price to this new price for utility hook ups is indeed necessary. Where would the difference if discounted be deferred to? Existing residents and business owners. Let those moving into the area who create the inflated impact on existing and required infrastructure pay the price instead of impacting existing residents and commercial customers absorbing it.