DEPARTMENT: Planning
DEPARTMENT HEAD: Bridgett White, AICP
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Second Amendment to the Agreement with the Property Owners of the Westside 211 Special Improvement District
SUMMARY:
This is a public hearing and consideration of a Second Amendment to the “Agreement for Services in lieu of Annexation between the City of San Antonio and the Cumberland Potranco Joint Venture, Cumberland 211, Ltd., KD CIRI I, L.L.C., CIRI Land Development Company and Cumberland 90, Ltd., Property Owners of the Westside 211 Special Improvement District located in the City’s extraterritorial jurisdiction. This Amendment extends the term of the agreement by ten years from 2007 to December 30, 2052. A copy of the Second Amendment to the Agreement is attached as Attachment 1.
BACKGROUND INFORMATION:
City Council approved an Agreement for Services in lieu of Annexation (Agreement) with the Cumberland Potranco Joint Venture, Cumberland 211, Ltd., KD CIRI I, L.L.C., CIRI Land Development Company and Cumberland 90, Ltd., (Property Owners) of the Westside 211 Special Improvement District (District) on September 20, 2007. [See map in Attachment 2.] The original agreement defers annexation of District until December 30, 2037 and provides the Property Owner’s consent to voluntary annexation at the expiration of the agreement.
One of the purposes of the District is to assist with financing public improvements related to State Highway 211 and Potranco Road, which were approved for Pass-Through Financing by the Texas Department of Transportation (TxDOT). Bexar County will issue bonds that will be repaid by TxDOT, with the District committed to covering finance costs associated with the bond issuance. The District revenues will first offset bond financing costs for the extension of State Highway 211 north of Potranco Road, and to widen Potranco Road from two lanes to five lanes and will then reimburse the developers. The District is responsible for paying any additional costs not covered by the pass-through payments. The private developers have made contributions to acquire right-of-way and pay for engineering of the public infrastructure. It was originally anticipated that the infrastructure could be designed, constructed and financed within thirty (30) years.
On December 5, 2013, the City approved an amendment to extend the Agreement term by five years to December 30, 2042. The first amendment also removed Navigators Stevens Ranch L.P., as one of the property owners. Since 2013, there have been delays pertaining to the road project which have increased costs and impacted the District’s financing plans.
On January 22, 2018, the District’s Board of Directors submitted a request to the City for a ten year extension to the Agreement’s term. The District indicated that they cannot issue bonds that extend beyond the non-annexation term. This extension would allow for the completion of the road improvements.
ISSUE:
The Second Amendment extends the Agreement’s term to December 30, 2052, totaling 45 years. Section 212.172 of the Texas Local Government Code allows the City to continue the extraterritorial status of a property and defer annexation of the property up to 45 years.
The existing agreement and proposed amendment are consistent with the City's Annexation Policy, which states Non-Annexation Agreements:
• May be offered for Industrial Districts, Public Improvement Districts, and other Special Districts.
• Shall require a statement that the property owner consents to voluntary annexation at the end of the term of the agreement or if the agreement is violated.
• Should consider services in lieu of annexation to extend City regulations and requirements in anticipation of annexation at some point in the future. For residential developments, additional criteria such as mixed uses, mixed housing types, higher connectivity ratios, enhanced park and open space dedications, pedestrian and biking paths, signage and appearance standards, and dedicated conservation areas, should be considered in lieu of annexation.
• Shall be reviewed by the Planning Commission for adherence to these policies.
Considerations that will remain in effect in the Agreement include:
• Enhanced neighborhood walkability by limiting cul-de-sacs and applying a maximum block length of 800 feet;
• Collection of building permit and development fees;
• No vested rights applicable prior to contract; and
• Voluntary annexation at end of the non-annexation term.
ALTERNATIVES:
An alternative is to not consent to the extension of the term. However, this may impact the District’s ability to pay the debt service for the bond to fund the construction of State Highway 211 and Potranco Road.
RECOMMENDATION:
Staff recommends that Planning Commission approves this Second Amendment to the Agreement for Services in lieu of Annexation between the City of San Antonio and the Property Owners of the Westside 211 Special Improvement District.