DEPARTMENT: Planning and Community Development
DEPARTMENT HEAD: John Dugan
COUNCIL DISTRICTS IMPACTED: Council District 4
SUBJECT:
Third Amendment to the August 2006 Agreement with the Crosswinds at South Lake
SUMMARY:
This Ordinance authorizes the execution of the Third Amendment to the "Agreement to Extend Limited Purpose Annexation and to Fix the Date for Full Purpose Annexation" for the Crosswinds at South Lake Special Improvement District located in Council District 4.
This Amendment removes the requirement to dedicate a contiguous tract of 2.5 acres of suitable land for a municipal facility, and provide a phased payment schedule over the term of the agreement for payment in lieu of the donation of land. The original agreement required dedication of the 2.5 acres by August 17, 2008, and required that the property not be located in the 100-year floodplain, and could be located within the Crosswinds at South Lake PID, or within City South.
BACKGROUND INFORMATION:
On August 17, 2006, the City Council authorized an agreement with Presto Tierra, Ltd., Presto Commercial #2, LLC, and Crosswinds at South Lake, L.P.(the "Property Owners") to extend the limited purpose annexation status of the property known as Crosswinds at South Lake, located in City Council District 4, in Limited Purpose Area #1, comprised of approximately 532.59 acres at the southwest intersection of Highway 16 and Watson Road, in Bexar County (the "Property"), and fixed the full-purpose annexation date to on or about December 30, 2035. The original agreement required the developer to donate a contiguous tract of 2.5 acres of suitable land for a municipal facility.
On June 19, 2008, City Council extended the Property Owners' time of performance to donate 2.5 acres of real property until September 12, 2011. A second amendment approved by City Council on June 9, 2011, postponed the full purpose annexation of the Property to January 1, 2044, and extended the limited purpose status of the Property. The Property Owners agreed to donate approximately 2.5 contiguous acres of real property to the City, located either within the Property or within City South, suitable for the location of a municipal facility or in the event the Parties are unable to mutually agree upon a tract of 2.5 contiguous acres the Property Owners would pay the City an amount equal to the fair market value of 2.5 acres within the CSMA area no later than January 1, 2014 adjusted to the Consumer Price Index.
ISSUE:
The City and Property Owners have not yet agreed to a suitable site for the 2.5 contiguous acres. Furthermore, there is no development activity on the site, making it a hardship for the owner to meet the lump sum payment at this time. Therefore, City staff and the Property Owners have proposed that the payment in lieu of donation option be phased over the term of the agreement. Payment #1 shall be in the amount of $13,333.33, due and payable on or before January 1, 2022; payment #2 shall be in the amount of $13,333.33, due and payable on or before January 1, 2030; and payment #3 in an amount equal to the remaining balance shall be due and payable on or before January 1, 2038.
Currently, the agreement stipulates that the lump sum payment in lieu of donation is due on January 1, 2014.
ALTERNATIVES:
One alternative is to not consent to the payment in lieu of option phased payment schedule. If the Property Owners are not able to offer an acceptable tract of land by January 1, 2014, or make the payment of $40,000.00 adjusted to the Consumer Price Index, the City may then opt to terminate the original agreement, and place the property in its 10 year annexation program.
FISCAL IMPACT:
There is no fiscal impact associated with passage of this ordinance.
RECOMMENDATION:
Planning Commission recommendation is pending. The Planning Commission will consider this item at its December 4, 2013 meeting.
Staff recommends approval authorizing the City Manager to execute this Third Amendment to the "Agreement to Extend Limited Purpose Annexation and to Fix the date for Full-Purpose Annexation."