The Sherman City Council will consider a new incentive agreement with Riverside Homebuilders, Ltd. that could provide both parties more than $100,000 when it meets at 5 p.m. Monday at Sherman City Hall. The agreement will use a lesser known law that allows developers to remit sales taxes for supplies that are purchased in another town to the city where the construction project will be taking place.

The agreement will relate to proposed housing developments on the city’s west side. The developer is currently building homes along Quail Run Road, but development is expected to stretch west to Friendship Road and then move south.

In total, the city expects that about 325 new homes could be constructed under the agreement.

This will be the first agreement of its kind for the city, said Sherman Community and Support Services Manager Nate Strauch.

These kinds of agreements are typically only used by larger developers who can handle the level of paperwork needed for the agreement and handle projects of the scale that would make such agreements practical.

“From their standpoint, this is really a paperwork transaction,” Strauch said.

As a part of the agreement, the developer will receive a smaller portion of the sales tax back. Strauch estimated that the developer could see about $100,000 through the agreement while the city could receive up to $150,000.

Here are three other things that will be discussed during Monday’s meeting:

1. Holley Heights

The council will consider issuing a specific-use permit for patio homes outside of the Stone Creek Golf Course in what is being called the Holly Heights addition.

In October, developer Josh Holley announced plans to build 72 homes outside of the country club, with a portion located directly adjacent to the course’s 10th hole.

The Sherman Planning and Zoning Commission recommended approval of the request for a specific use permit when it met on Dec. 17.

2.Moore Street improvements

In other matters, the council will discuss advertising for bids for the expansion of Moore street from West Travis to Park Avenue. The project will be designed to give additional connectivity to Sherman High School once it is opened in late 2020.

The phase that the city is pursing will see the two western most lanes of the roadway constructed. At a later date, the city plans to pursue the eastern lanes, creating a four-lane divided roadway.

3. Munson development water improvements

The council will also consider awarding a $645,000 contract to Lynn Vessel Construction for water system improvements near Flanary Road and Heritage Parkway. Nearly 7,200 feet of sewer line will give additional waste water service to the Munson planned development and the new Sherman High School.