Title
Consider/Discuss/Act on a Second Amendment to the 2012 Trinity Falls Development Agreement and a First Amendment to the Amended and Restated Trinity Falls Park Development and Disbursement Agreement
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: November 1, 2016
DEPARTMENT: Development Services Division
CONTACT: Michael Quint, Executive Director of Development Services
Mark Hines, PE, Director of Engineering
Danny Kistner, Fire Chief
Barry Shelton, AICP, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed agreement amendments.
ITEM SUMMARY:
• Staff recommends that the City Council approve the following proposed items:
o Second Amendment to the 2012 Trinity Falls Development Agreement
o First Amendment to the Amended and Restated Park Development and Disbursement Agreement
Second Amendment to the 2012 Trinity Falls Development Agreement
• Staff has been working with the new and old Developer of the Trinity Falls MUD for approximately 6 months to clarify and refine several existing provisions within the 2012 Development Agreement and the First Amendment. We were able to reach agreement on several of the provisions but there are two (2) significant provisions that we were unable to agree upon. All of the provisions are discussed in more detail below.
o Third Party Construction Inspection Services
§ Currently, infrastructure construction inspections efforts are being duplicated on site. The Developer pays for inspectors to monitor construction and develop reports that can be submitted to the Texas Commission on Environmental Quality (TCEQ) while McKinney’s construction inspectors are also inspecting and monitoring construction efforts in accordance with applicable City regulations. The proposed amendments will allow for the City of McKinney to hire new inspectors that will serve only Trinity Falls which should offer operational efficiencies for McKinney’s Engineering Department and the Developer. Staff and the Developer are in agreement with the proposed language.
o “East Feed” Master-Planned Water Line
§ Currently, there is nothing in the Agreement outlining when the Developer must build and install a master-planned water line generally located along the east side of Trinity Falls Parkway other than the line must be installed before the 2,200th building permit is issued. If the line is constructed and operational too soon, there may be water quality issues. Consequently, Staff sought to provide a range within which the line could be built. As proposed by the amendment, the line could not be built before the 1,800th building permit but no later than the 2,200th building permit is issued. Staff and the Developer are in agreement with the proposed language.
o Trinity Falls Parkway Construction
§ This provision was clarified to state the timeline on eminent domain acquisition and to reconfirm that the City will not issue building permits beyond the 750th building permit if Trinity Falls Parkway has not been completed and accepted. Staff and the Developer are in agreement with the proposed non-substantive language.
§ The Developer has indicated that it will not be completed with Trinity Falls Parkway by the issuance of the 750th building permit; however Staff and the Developer were not able to agree to a revision that adequately addresses the increase in traffic caused by Developer’s delay in completion. Consequently, the Developer will not receive building permits beyond 750 dwelling units until Trinity Falls Parkway is completed and accepted by the City.
o Trinity Falls Fire Station
§ Staff feels that the existing provision is clear that the Developer will construct, equip, and fund the operations of a fire station in Trinity Falls or enter into a contract with the City for fire service prior to the issuance of the 1,501st building permit. Notwithstanding the existing agreement provision, Staff sought to clarify the obligations for construction and funding of the fire station and the attendant operational costs to avoid future disputes or contract ambiguity.
§ Staff and the Developer were not able to come to an agreement. The Developer sought to limit its financial participation in the Fire Station to a level that was deemed non-supportable by Staff. The Developer has indicated that it will revisit this issue in the future as the 1,501st building permit threshold is closer. For reference purposes, approximately 500 building permits have been issued to date.
o On-Street Bicycle Lanes
§ Per the existing Development Agreement, on-street bicycle lanes are required through Subdivision Ordinance (and Street Design Manual). The Developer expressed concerns with these lanes adding an unnecessary cost to the development and Staff has agreed to support the waiver of this requirement as we re-evaluate the City’s approach to on-street bicycle facilities as part of the ONE McKinney 2040 Comprehensive Plan update.
o Comprehensive Plan
§ The Developer has asked that the Comprehensive Plan not apply to the Trinity Falls MUD even though the property is within McKinney’s extraterritorial jurisdiction (ETJ). Given the status of the current Comprehensive Plan update, there is some concern that the new Comprehensive Plan may increase overall development costs for the development. Staff has no objection to this proposal as the development’s quality and character will be actively managed through the development regulations contained within the development agreement, as amended.
o MUD Consolidation and Annexation of Land
§ In accordance with the rights granted to the Developer per the development agreement, property was recently annexed into the MUD which now needs to be incorporated into the legal descriptions and maps attached to the development agreement depicting the development’s limits. Additionally, the Developer has expressed the desire to combine MUD 1 and MUD 2 to assist with bonding capacity. Staff has worked with the Developer to propose modifications addressing these issues and have no objections to the proposed language contained within the proposed development agreement amendment.
o Agreement Term
§ The term has been modified to automatically renew if the Developer’s obligations under the agreement have not been fully satisfied by 2027. Staff and the Developer are in agreement with the proposed language.
First Amendment to the Amended and Restated Park Development and Disbursement Agreement
• The proposed amendments allow the City of McKinney to approve the shifting of park improvements to different Park Areas upon request by the Developer. The City is under no obligation to approve any requested shifts in timing or location of improvements, but the City Manager may approve such requests if deemed acceptable.
• Additionally, the term has been modified to automatically renew if the Developer’s or MUD’s obligations under the agreement have not been fully satisfied. Staff and the Developer are in agreement with the proposed language.
BACKGROUND INFORMATION:
• Trinity Falls is comprised of two (2) Municipal Utility Districts (MUDs) established in accordance with state law in McKinney’s ETJ. The master planned community consists of approximately 1,600 acres of land and is anticipated to contain approximately 4,000 single family residential dwelling units and some limited non-residential uses.
• The Trinity Falls MUDs are governed by a development agreement that was executed by the City of McKinney in 2006 and amended in December 2012 and February 2014. The proposed amendment to the development agreement represents the second amendment to the 2012 development agreement.
• Trinity Falls was recently sold by Castle Hills Partners (CH-B Trinity Falls, L.P.) to Johnson Development (Trinity Falls Holdings, L.P.).
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A