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Eagle Creek Roadway Impact Fees MOU Docusign Envelope ID:AB43354C-4647-4731-9694-BC068B505960 4 r Development Services DENTON 401 N. Elm St., Denton, TX 76201 • (940) 349-8600 MEMORANDUM OF UNDERSTANDING DATE: July 30, 2025 TO: Forestar(USA) Real Estate Group Inc. (Developer) FROM: City of Denton- Development Services SUBJECT: Agreement Regarding Roadway Impact Fees (RIF) for Eagle Creek Development Purpose This Memorandum of Understanding (MOU) outlines the agreed interpretation of the previously executed Development Agreement (the "Original Agreement") from September 26, 2022, between the City of Denton ("City") and Forestar(USA) Real Estate Group Inc. ( "Developer") regarding RIF and credits for the Eagle Creek Development, Phases IA-1B, 2A-2B, 3A-313, and 4. Objective The primary objective of this MOU is: • To clarify the application of RIF Credits for the Eagle Creek Development, considering the Original Agreement and the new roadway impact fee ordinance adopted by City Council on July 16, 2024, which became effective on January 1, 2025 (the "RIF Ordinance"). Fact Background 1. Background of Agreement: • The Developer and City entered into the Original Agreement on September 26, 2022, concerning public improvements to be made to Highland Park Road and Parvin Street (the "Improvements") and setting a maximum impact fee credits based on the Improvements for the Eagle Creek Development. OUR CORE VALUES Inclusion• Collaboration • Quality Service • Strategic Focus • Fiscal Responsibility Docusign Envelope ID:AB43354C-4647-4731-9694-BC068B505960 • The Original Agreement was amended by Ord. 23-915 on May 16, 2023 to reimburse Developer for fees paid prior to the adoption of the Original Agreement(the "First Amendment"). 2. Subsequent Events: • City adopted the RIF Ordinance on July 16, 2024. • All phases of the Eagle Creek Development were approved/permitted prior to the effective date of the RIF Ordinance and assessed at the previous fee of$2,000 per dwelling unit with the exception of Phases 3B and 4. • Under the RIF Ordinance Phase 3B and 4 would be assessed at a rate of$3,673 per dwelling unit. • Developer has completed the Improvements according to City's specifications and standards, as per the Original Agreement. City has accepted the Improvements. • The total cost of the Improvements was $7,900,889.11. The maximum credit amount under the Original Agreement was $1,532,000.00. Developer approached City on January 7, 2025 and requested additional credits due to the increased cost of construction. Agreed Interpretation of the Agreement: 1. Developer's Commitments and RIF Credits: • Under the Agreement, Developer is eligible for RIF credits at $2,000 per unit. The development has completed the committed improvements, and the RIF credits are capped per units built with this project development. 2. Developer Interpretation Request: • Developer is requesting City agree that Developer not be obligated to pay or receive any additional fees beyond those specified in the Original Agreement. • Developer is requesting City assess RIF at $2,000 per unit for the current Phases 3B and 4 development rather than the $3,673 per unit rate under the RIF Ordinance; and • By agreeing to assess Phases 3B and/or 4 at $2,000 per unit, the existing amount of RIF Credits under the Agreement are sufficient, and no modification of the Original Agreement is necessary. 3. City's Commitment Regarding Interpretation: • Based on the Original Agreement being signed prior to the RIF Ordinance, City is agreeable to assessing Phases 3B and 4 at $2,000 per unit, for these phases only. 2 Docusign Envelope ID:AB43354C-4647-4731-9694-BC068B505960 Agreeing to this assessment rate means Developer will not be required to pay any additional RIFs. • Any remaining and/or incomplete phases within the Eagle Creek Development project that have not been platted prior to the execution of this MOU are subject to the current Roadway Impact Fee of$3,673.00. Review and Amendments Any amendments or changes to the MOU must be agreed upon by all parties in writing and signed by each department's respective representative. If at any point the MOU is terminated, the terms outlined in the Original Agreement for the Eagle Creek Development will remain applicable. Memorandum of Understanding Approval The undersigned acknowledges they have reviewed the Memorandum of Understanding and agree with the information presented within this document.. Signed by: �Cbl(ne hAVA.0 9/3/2025 Director Department Date City of Denton- Development Services 1�d4 08/29/2025 Lauren Adams( ug29,20 511:00:54 CDT) Vice President Forestar(USA) Real Estate Group Inc. Date FDoauSigned by: 6&Ss" vv-A, 9/3/2025 DCM/ACM Department Date Signed by: Ih( A-O IV- 9/2/2025 Legal Rep. Department Date As to Legal Form Only. 3