Title
Conduct a Public Hearing to Consider/Discuss on the Request by Petsche and Associates, Inc., on Behalf of Blue Star Land L.P., on a Petition to Annex Approximately 238.92 Acres, Located on the Southeast Corner of U.S. Highway 380 (University Drive) and Coit Road.
Summary
MEETING DATE: November 2, 2010
DEPARTMENT: Development Services - Planning
CONTACT: Jennifer Cox, AICP, Director of Planning
Brandon Opiela, Senior Planner
Abra R. Nusser, Planner
RECOMMENDED CITY COUNCIL ACTION:
• Conduct the second of three public hearings regarding a voluntary petition for annexation.
• In accordance with the Texas Local Government Code, the City Council will hold this public hearing on November 2, 2010 at the regular City Council meeting (6:00 p.m.). Final action regarding the petition for annexation will be considered at the regular December 7, 2010 City Council meeting, concurrently with a proposed zoning request and a development agreement.
ITEM SUMMARY:
• The applicant has submitted a petition for voluntary annexation to the City of McKinney for an approximately 238.92 acre tract of land. The subject property is located on the southeast corner of U.S. Highway 380 (University Drive) and Coit Road.
• The subject property, if annexed, will be zoned pursuant to a pending zoning request (10-064Z) that will be considered for final action at the December 7, 2010 City Council meeting. The associated zoning request will cover the same land area as contained within the annexation petition.
• The applicant is requesting the subject property be zoned in conformance with the Stonebridge Ranch and Custer West planned developments with approximately 48 acres of retail/commercial use and approximately 142 acres of single family residential use. The applicant has provided an average density of 4.04 (based on gross acreage), a mean lot size of 7,615 square feet, and median lot size of 7,020 square feet. The associated zoning request has also designated approximately 12 acres for a future school site adjacent to an approximately 15 acre park.
• In order to balance McKinney's tax base, both present and future, annexing and preserving commercial property in meaningful sizes and location is the City of McKinney's most meaningful action. This is because a municipality cannot control land use except through zoning, which can only occur once the property is annexed.
• The key to successful land planning for retail/commercial development is location (access, vehicle trips, and infrastructure) and market (general economic trends and trade area size and demographics). Planning for retail/commercial must be realistic with regard to the location's potential.
• The subject property is one of the last significant undeveloped properties in the area. Additionally, the location makes sense to be planned for a retail commercial corner. The 48 acre retail/commercial tract appears to be appropriately sized for a power center development that would draw from a market area that includes Frisco and Prosper.
• Without being annexed, the City of McKinney cannot regulate land use or collect property and sales taxes. From a fiscal standpoint, the subject property could develop, at worst, as single family or, at best, bottom tier commercial or industrial, rather than conforming to Stonebridge Ranch and City of McKinney development standards.
• The surrounding properties to the south and southeast are generally already zoned and most have approved Record Plats. The vast majority of this property is residential and will develop as such. It is, generally speaking, not well suited to be commercial except at the existing small neighborhood retail corners. This leaves the subject property as the primary large retail/commercial corner in the larger area.
• 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; the Zoning Ordinance does not.
• The subject property is located within the Prosper Independent School District. Prosper ISD has been informed of the proposed annexation.
• Because this annexation is at the request of the property owner, the developer of the subject property will be responsible for extending adequate infrastructure to the subject property as the property is developed.
• Staff and the applicant are working on a second amendment to the existing Custer West Development Agreement dealing with the provision of services and to mitigate anticipated possible costs to the City associated with the proposed annexation (discussed further below). This agreement will be considered for final action at the December 7, 2010 City Council Meeting.
• The successful addition of the subject property into the Stonebridge Ranch Planned Development and Master General Development Agreement provide a higher quality development than might otherwise be possible on its own. Additionally, there are few new developments occurring Nationally at this time, let alone projects with major Retail/Commercial corners, 27 acre neighborhood school/park sites, and high quality development standards. This project will garner attention from the development community who will see that McKinney, Texas is open for business.
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.
• In addition to the City of McKinney's Subdivision Ordinance, the subject property would become incorporated into the bifurcated portion of the Master General Development Agreement of the original Stonebridge Ranch Agreement covering the Westridge area. This agreement already provides for many improvements for infrastructure and land dedications. A few key additional provisions have been negotiated to address future infrastructure and quality of life needs related to the project.
• Timing for the construction of Coit Road, including at the Retail/Commercial corner, extension of a looped water line and a sewer line to serve the entire subject property, the completion of Virginia Parkway from Custer to Independence Parkway (and including the intersection), and the dedication of a 15 acre neighborhood park are all meaningful provisions negotiated above and beyond the normal standard to ensure the subject property is a positive addition to the City of McKinney, both today and through build out.
• These additional provisions would not be possible if the subject property were not to become a part of the Master General Development Plan, and as such are unlikely to be matched by a different project. Additionally, several items would become the responsibility of the City of McKinney, rather than the Master General Development Agreement.
FINANCIAL SUMMARY:
• Annexation of additional property has financial implications for the City.
• The attached fiscal analysis shows a positive net cost benefit using the expansion method of $1,458,940. The expansion method of calculating public service cost is used for project specific cost of service. This method is used to determine the cost to provide city services to a specific development project. It takes into account only those costs directly attributable to that project and, therefore, is a good measure of the impact of a single zoning decision.
• The full cost method also shows a positive net cost benefit of $1,058,823. The full cost method of calculating public service cost is useful for citywide modeling and forecasting. This method takes the entire city budget into account, including those costs that cannot be attributed to any one project such as administrative costs and debt service on municipal bonds. Because the full cost method takes into account all costs, it is useful in tracking the city budget to determine if the citywide tax revenue is sufficient to pay for the operating costs to the city.
• These numbers are based on a total of 48.71 acres of retail use and 142.41 acres of single family residential use.
• Although the developer 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:
• 40 points for water system (supply, distribution, fire flow, hydrants, maintenance, etc.),
• 50 points for evaluation of the Fire Department itself,
• 10 points for alarm systems, and
• 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; Allen has a rating of 2). The latest evaluation was conducted in 2009. Typically, evaluations are conducted every 10-15 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