Title
Conduct a Public Hearing to Consider/Discuss/Act on the Request by Petsche and Associates, Inc., on Behalf of Blue Star Land L.P. and 206 McKinney L.L.C., on a Petition to Annex Approximately 238.92 Acres, Located on the Southeast Corner of U.S. Highway 380 (University Drive) and Coit Road, and Accompanying Ordinance.
Summary
MEETING DATE: October 18, 2011
DEPARTMENT: Development Services - Planning
CONTACT: Jennifer Cox, AICP, Director of Planning
Brandon Opiela, Senior Planner
Abra R. Nusser, Planner
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends conducting the third of three public hearings and approval of the proposed annexation request.
ITEM SUMMARY:
• The subject property is located in the Extraterritorial Jurisdiction (ETJ) of the City of McKinney. The purpose of the ETJ is to promote and protect the general health, safety and welfare of persons residing in and adjacent to the municipalities.
• The Subdivision Ordinance applies to properties within the ETJ, but the Zoning Ordinance does not.
• The subject property is located within the Prosper Independent School District, and Prosper ISD has been informed of the proposed annexation.
• The subject property, if annexed, will be zoned pursuant to a pending zoning request (10-064Z) that is being considered concurrently at the October 18, 2011 City Council meeting.
• The proposed zoning request (10-064Z) associated with this proposed annexation includes the entire subject property. The applicant is requesting the subject property be zoned for retail/commercial, single family residential, elementary school, and park/open space uses.
• Because this annexation is at the request of the property owners, the developer(s) of the subject property will be responsible for extending adequate infrastructure to the subject property as the property is developed (or in conjunction with the associated development agreement as applicable).
• A development agreement pertaining to the provision of services and to mitigate anticipated possible costs to the City associated with the proposed annexation has been prepared and is being considered concurrently at the October 18, 2011 City Council meeting.
SPECIAL CONSIDERATIONS:
1. Annexation and City Services.
• Due to the fact that the proposed annexation is voluntary, the City can annex the land even though it is not currently on the annexation plan (Texas Local Government Code §43.052 (h) (2)).
• The subject property that is proposed to be annexed is unpopulated.
• The McKinney Fire Department currently provides fire and medical emergency services in this area. Currently, police response is from Collin County. The Texas Local Government Code stipulates that police and fire services must be provided immediately upon annexation (Texas Local Government Code §43.056).
• The Texas Local Government Code stipulates that solid waste collection must be provided immediately upon annexation (Texas Local Government Code §43.056).
2. Public Improvements.
• All necessary public improvements will be required at time of platting, unless otherwise specified in an approved development agreement.
• The pending development agreement is the second amendment to the Custer West Development Agreement and has been updated to include provisions for the construction of future water and wastewater capital improvements, both onsite and offsite, as well as the dedication and construction of adjacent arterial roadways and other off-site portions of thoroughfares necessary to adequately circulate traffic throughout the Custer West development.
• The terms of the amended agreement ensure that proper infrastructure is installed for the project on an expedited timeline which will enable efficient development of the property.
BACKGROUND INFORMATION:
• In accordance with the Texas Local Government Code, the petition for annexation only requires approval by the City Council. The first two public hearings for the annexation were held on September 20, 2011 (in addition to the other six public hearings previously held). This is the third and final public hearing for the annexation which is being held concurrently with the associated zoning request and development agreement at the October 18, 2011 City Council meeting. Should the subject property not be annexed by the City Council, the applicant will not be required to obtain zoning and may be permitted to move forward with development plans for the subject property, in accordance with the Subdivision Ordinance of the City of McKinney.
• Six public hearings were previously held on the proposed annexation in November and December of 2010 and in January and February of 2011, but the request was tabled twice due to incomplete signatures on the associated development agreement. All signatures have been attained for the associated development agreement so the public hearings were restarted per the requirements of the Texas Local Government Code. This is the third and final public hearing for the annexation.
FINANCIAL SUMMARY:
• Annexation of additional property has financial implications for the City.
• Although the developer(s) will be responsible for upgrading roads and extending utilities as development occurs, unless otherwise specified in a development agreement, the long-term maintenance of these facilities will be the City’s responsibility.
• The ISO rating determines insurance rates in McKinney. Poor availability of water resources in proposed annexed areas could have a negative impact on ISO ratings.
• An ISO rating is based on a 105-point system:
o 40 points for water system (supply, distribution, fire flow, hydrants, maintenance, etc.),
o 50 points for evaluation of the Fire Department itself,
o 10 points for alarm systems, and
o 5 points for code enforcement, plan review, etc.
• The effects of additional annexation on ISO ratings are cumulative. The City of McKinney’s current ISO rating is 2 on a scale of 1 to 10, with 1 being the best and 10 being the worst (Plano has a rating of 1, and Allen has a rating of 2). The latest evaluation was conducted in 2009. Typically, evaluations are conducted every 10 to 15 years.
• The Fire Department has indicated that the proposed annexation request may have the potential for a negative impact upon the City’s ISO rating. There will be extended response time to citizens living within the area to be annexed. The Fire Department has also indicated that the current water supply may impact fire fighting capabilities, and current road infrastructure may add to response times.
• Annexed parcels are subject to City property tax. This tract may currently have an agricultural valuation classification with Collin Central Appraisal District (CCAD). An agricultural exemption is given to properties in active agricultural uses, which allows the property to have a lower appraisal value and thus, lower taxes. When property with an agricultural exemption is developed, it is subject to rollback taxes for each of the previous five years. As such, the owner would be required to pay County, ISD, and City taxes which had been exempted during that five-year period. Whenever this proposed tract is developed, the City would receive rollback taxes if the property has such an exemption.
BOARD OR COMMISSION RECOMMENDATION:
• N/A