DEPARTMENT: Planning and Community Development
DEPARTMENT HEAD: John M. Dugan, AICP
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT:
Resolution recommending approval of development agreements for properties in the proposed IH-10 East limited purpose annexation area guaranteeing continued extraterritorial jurisdiction status of properties which are appraised for ad valorem tax purposes as agricultural, wildlife management or timber use for a period of 10 years.
SUMMARY:
The City of San Antonio offers development agreements for properties in the proposed IH-10 East limited purpose annexation area that guarantee continued extraterritorial status of properties which are appraised for ad valorem tax purposes as agricultural, wildlife management or timber use for a period of 10 years, to comply with Texas Local Government Code, Section 43.035. The Planning Commission is requested to make a recommendation on the agreement and the qualifying properties whose property owners have responded to the letter offer for an agreement in lieu of annexation.
BACKGROUND INFORMATION:
Letters were mailed to the eligible property owners by certified mail on August 7, 2015, with a requested response to be hand delivered by September 4, 2015 by 4:30 p.m. or postmarked by September 2, 2015. If the landowner declined to make the agreement, or if no response was received by the deadline, the City may annex the property.
The primary tenets of the development agreement are:
1) The owner agrees to consensual annexation at the end of the 10 year term or has an option to extend the agreement, by mutual consent in writing, and with City Council approval;
2) The agreement allows the continuation of agriculture as an industry which supports local markets;
3) The City can extend its boundaries beyond the development agreement area, as an area adjacent to one of these agreements is considered to be contiguous to the city;
4) The development agreement does not create vested rights;
5) The agreement automatically terminates with the filing of a subdivision plat or related development document, or if the use is changed to a non-agricultural use, regardless of how the area is appraised for ad valorem tax purposes; and
6) Should the agreement terminate the City can proceed with annexation and zoning using the procedures for consensual annexation.
The proposed agreement is consistent with the City’s Annexation Policy, which states that in considering non-annexation agreements the City should:
• Offer agreements to property owners, within a proposed Municipal Annexation Plan, that have Agricultural Exemptions, in accordance with state law;
• Include a statement that the property owner consents to future voluntary annexation and a negotiated annexation schedule;
• Consider revenue sharing option in areas that have taxing authority;
• Consider services in lieu of annexation to extend the city’s regulations and requirements in anticipation of annexation at some point in the future;
• Shall be placed in the City’s annexation program for future consideration;
• Be reviewed by the Director of Planning and Community Development for adherence to these policies.
On October 23, 2015, the Planning Commission is holding a public hearing to provide a recommendation on the annexation of the IH-10 East area for limited purposes. City Council consideration for Limited Purpose Annexation is scheduled for November 19, 2015. Those properties for which the owners have consented to a non-annexation agreement will be removed from the Limited Purpose Annexation area. Those properties where the owners declined or did not respond to the City’s offer will be included in the Limited Purpose Annexation proposal.
ISSUE:
When an area is proposed for annexation the Texas Local Government Code, Section 43.035, requires a development agreement be offered in lieu of annexation to owners of property appraised for ad valorem tax purposes as land for agriculture or wildlife management use under Subchapter C or D, Chapter 23, Texas Tax Code, or as timber land under Subchapter E of that chapter. A city may not annex an area, unless the city offers to make an agreement with the land owner to continue the extraterritorial status of the area. Section 43.035 authorizes the development agreement to extend regulations and planning authority of the city that do not interfere with the use of the area for agriculture, wildlife management or timber use. Eleven property owners submitted non-annexation agreements for property covering approximately 273 acres.
ALTERNATIVES:
The Commission may approve or deny the request, or may recommend alternate language in the agreement.
FISCAL IMPACT:
There is no financial impact associated with this item.
RECOMMENDATION:
Staff recommends approval to comply with the Texas Local Government Code, Section 43.035.