DEPARTMENT: Planning
DEPARTMENT HEAD: Bridgett White, AICP
COUNCIL DISTRICTS IMPACTED: Citywide and City Council District 6
SUBJECT:
The City’s conditional consent to the creation by Bexar County of an approximately 232.314 acre Public Improvement (PID), the proposed Talley Road Special Improvement District; and a transferable development agreement between the City and Wayne Lee Benke.
SUMMARY:
Public hearing and consideration of a resolution recommending the City of San Antonio’s (City) conditional consent to the creation by Bexar County of an approximately 232.314 acre PID, the proposed Talley Road Special Improvement District; and the approval of a transferable development agreement between the City and Wayne Lee Benke, (Owner) of the property, generally located east of the intersection of Cartwright Trail and Talley Road within the extraterritorial jurisdiction (ETJ) of the City of San Antonio, Bexar County, Texas.
BACKGROUND INFORMATION:
Texas Local Government Code Chapter 382 allows for the creation of Public Improvement Districts (PIDs) and other Special Improvement Districts by a city or county. PIDs are considered to be economic development tools used to pay or finance public improvements and economic development within (and that benefit) a defined geographical area which will ultimately become the district. The general nature of the proposed work may include, but is not limited to, the improvement and construction of certain road thoroughfares and collector and arterial roads, acquisition of right-of-way for those road improvements, improvements to all utilities, water, wastewater, and sanitary sewer improvements, associated drainage and trails, and park and recreational improvements, located within the district boundaries. These PIDs may levy a special assessment as a source of funding and costs are apportioned and paid by land owners within the boundaries that benefit from public improvements and/or services.
In order to create a PID in a county, more than 50 percent of owners of taxable real property liable for assessment within the proposed PID area, must submit a petition to the governing body of the county. If the proposed PID is located within a municipality’s ETJ, the municipality has the option to object to the formation of the district pursuant to state law.
In accordance with Section 212.172 of the Texas Local Government Code, a municipality and a land owner may enter into a written agreement by which the municipality will extend the municipality’s planning authority, establish development regulations including land use and development standards and provide for the infrastructure of the land.
On October 1, 2018, Wayne Lee Benke (Owner) petitioned Bexar County to create a PID, to be named the Talley Road Special Improvement District (Talley Road PID), on land consisting of approximately 232.314 acres generally located east of the intersection of Cartwright Trail and Talley Road, in San Antonio’s ETJ. The PID Property consists of the “Benke Tract” (approximately 222.6 acres) and two segments of Talley Road (approximately 2.444 acres and approximately 7.270 acres). Currently, the Benke Tract is undeveloped. The PID Property is more particularly described by the metes and bounds attached hereto as Exhibit “A” and depicted in Exhibit “B.”
Talley Extension Revitalization Initiative, LLC, (Developer) proposes to purchase the Benke Tract upon the County’s creation of the District. The Developer intends to develop the Benke Tract which currently is undeveloped land as a single-family residential development. In addition, the Developer plans to construct public improvements and infrastructure as further described and depicted in the proposed Westgate Subdivision Master Development Plan (MDP) attached hereto as Exhibit “C.”
On October 23, 2018, the Bexar County Commissioners Court approved a resolution stating their intent to create this PID. The County would authorize the PID to impose an ad valorem tax on future property owners within the PID boundaries.
In addition, the Owner has petitioned the City to consent to the creation of their PID in San Antonio’s ETJ and requested a thirty (30) year development agreement for the PID property. The Developer has indicated that the agreement would provide greater certainty in the development of the PID, which would help secure financing for the PID.
ISSUE:
This is a public hearing and consideration of the Planning Commission resolution recommending that City Council grants its conditional consent to the establishment of the Talley Road PID within the City’s ETJ by Bexar County and approves a Development Agreement (Agreement) between the City and the PID property owner. [The Agreement has been attached as “Attachment A.”]
The conditional consent of the City includes the delegation of the road district powers and the power to provide water, wastewater and drainage facilities is required by state law, in order for this PID to exercise those powers.
However, the City does not consent to the following:
- the exercise of eminent domain powers by the Talley Road PID;
- the power to annex, expand or exclude land into its existing boundaries;
- the power to retail or sell water, waste water and drainage services;
The proposed Agreement will include the following terms and obligations between the City and the Owner with respect to the development of the PID property.
- The City will guarantee the continuation of the extraterritorial status of the PID property.
- The City will not annex property within the PID boundaries for thirty (30) years, after the effective date of the development agreement.
- The Owner agrees to consent to annexation by the City upon the termination of the Agreement.
- Upon the expiration or termination of the Agreement through a violation of the development agreement by the owner of the property, the City would have the option to annex the property.
- In the event the City would annex the PID Property according to the provisions of the Agreement, the City and the Owner mutually agree to the services the City would provide to the PID Property as required by the Texas Local Government Code.
- The Owner agrees to comply with all municipal rules, regulations, orders, ordinances and other laws applicable to all properties within the City’s ETJ during all phases of development and construction of the PID Project and during the term of the Agreement.
The proposed timeline for the formation of the PID by the County and approval of the Development Agreement is as follows:
Dates Schedule of Action
October 23, 2018 Bexar County Commissioners Court adopt a resolution stating their intent to create the PID
November 14, 2018 San Antonio Planning Commission Public Hearing and Recommendation of the Development Agreement
November 29, 2018 City Council Public Hearing and Consideration to approve Development Agreement
December 4, 2018 Commissioners Court Public Hearing and Consideration to create the PID and appoint a Board of Directors
February 3 -15, 2019 PID’s Board of Directors organizational meeting and order calling an election
May 4, 2019 Commissioners Court will hold an election to confirm the PID and approve the PID’s ad valorem tax
ALTERNATIVES:
A denial of the Resolution may result in the Talley Road PID not being established by Bexar County. This action would require that the Owner and Developer seek a different financing mechanism for the development of the PID property. It may result in the development and construction of infrastructure occurring in a traditional method rather in the manner proposed by the developer.
FISCAL IMPACT:
There is no fiscal impact associated with the passage of this Resolution.
RECOMMENDATION:
Staff recommends approval of the Resolution regarding the City’s conditional consent to the creation of a 232.314 acre PID by Bexar County, to be named the Talley Road Special Improvement District; and the approval of the transferable development agreement between the City and Wayne Lee Benke.