Title
Conduct a Public Hearing to Consider/Discuss/Act on a Request by the City of McKinney to Annex (Case No. 23-0004A) the Subject Property and Zone (Case No. 23-0103Z) a Portion of the Subject Property to “R5” - Residential District and Zone a Portion of the Subject Property to “AG” - Agricultural District, Located on the Southeast Corner of FM 543 and County Road 202 and Located on the North Side of FM 543 and Approximately 160 Feet East of Lantana, and Accompanying Ordinances
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1C: Provide a strong city economy by facilitating a balance between industrial, commercial, residential and open space)
MEETING DATE: January 16, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Caitlyn Strickland, AICP, Planning Manager
Kaitlin Sheffield, CNU-A, Senior Planner
Alan Lathrom, City Attorney
RECOMMENDED CITY COUNCIL ACTION: Staff recommends approval of the proposed annexation and zoning request, which includes the proposed annexation ordinance and the proposed zoning ordinance.
ITEM SUMMARY:
Consent to Annex (Agenda Item #23-0004A)
• In accordance with Chapter 43 (Subchapter C-4) of the Texas Local Government Code, the proposed annexation would incorporate approximately 127 acres of land with a population of less than 200 into the corporate limits of McKinney.
• The area proposed to be annexed is within the McKinney Extraterritorial Jurisdiction (ETJ) and can generally be described as the properties located on the north side of FM 543 and approximately 160 feet east of Lantana Drive and the southeast corner of FM 543 and CR 202, including the adjacent roadways of FM 543 and CR 202.
• A portion of the proposed annexation area (south of FM 543) is currently subject to a pre-annexation development agreement that already contemplates annexation of the property into the city limits. However, the portions of the annexation area north of FM 543 are not subject to a pre-annexation agreement.
• The subject property is also located within McKinney Independent School District. McKinney ISD has been informed of the proposed annexation.
• Staff recommends approval of the proposed annexation (Agenda Item #23-0004A).
Proposal to Zone (Agenda Item #23-0103Z)
• Staff recommends zoning the 84-acre portion of the property located on the southeast corner of FM 543 and County Road 202 (known as tracts 37 and 42 in the Meredith Hart Survey - Abstract Number 371) to the “R5” - Residential District, generally for single family residential uses. The proposed zoning aligns with the Urban Living placetype designated in the comprehensive plan, as well as the existing Annexation and Development Agreement, approved in December 2021.
• Staff recommends zoning the 38-acre portion of the property located on the north side of FM 543 and approximately 160 feet east of Lantana Drive (known as tract 43 in the John Emberson Survey - Abstract Number 294 ) to the “AG” - Agricultural District, generally for agricultural uses. Although the proposed zoning does not strictly align with the Suburban Living placetype designated in the comprehensive plan, Staff feels that the proposed zoning allows for use of the property similar to what is seen in the immediate area, until such time that future development of the site occurs.
• As such, Staff recommends approval of the proposed zoning (Agenda Item #23-0103Z).
• In accordance with State Law, the proposed zoning request was considered by the Planning and Zoning Commission at the December 12, 2023 meeting and received a favorable recommendation by the Commission in a 6-0-0 vote.
• Information regarding the zoning request and Staff’s full evaluation is attached to this agenda item as “23-0103Z - Zoning Request Information.”
BACKGROUND INFORMATION:
1. Annexation and City Services.
• The city-initiated annexation of land with a population of less than 200 is governed by Chapter 43, Sub-Chapter C-4 of the Texas Local Government Code. This code section outlines the steps and procedures that must be followed in order to incorporate land that is within a municipality’s extraterritorial jurisdiction (ETJ) into its corporate city limits if the municipality obtains consent to annex the area through a petition signed by more than 50 percent of the registered voters of the area. If the registered voters of the area do not own more than 50 percent of the land, the petition may be signed by more than 50 percent of the owners of land in the area.
Annexation pursuant to Chapter 43, Sub-Chapter C-4 of the Local Government Code must comply with the following procedures (summarized from state law):
o Approval of a resolution stating the intent to annex the area.
The resolution must include a location map and description of the area proposed to be annexed and a description of each service to be provided by the municipality in the area should it be successfully annexed into the city. (Approved June 20, 2023 by Resolution No. 2023-06-085)
o Mailed notice to affected residents and property owners.
Mailed notice must be sent to each resident and property owner in the area proposed for annexation that includes information about the initial public hearing, an explanation of the petition period, and a description of each service to be provided by the municipality in the area should it be successfully annexed into the city. (Mailed June 26, 2023)
o Initial Public Hearing.
Following approval of the resolution and mailed notice to affected residents, an initial public hearing shall be held by City Council regarding the proposed annexation. (Held at the July 18, 2023 City Council meeting)
o Consent to Annex Petition.
Following approval of the resolution, mailed notice, and the initial public hearing, the city has up to 180 days to collect signatures from the registered voters or property owners of the area proposed to be annexed. At the conclusion of the petition period, signatures shall be validated by the city and the petition results shall be provided to the residents and property owners within the proposed annexation area. (Petition results mailed December 27, 2023)
o Final Public Hearings.
Should the city receive signatures from more than 50 percent of the registered voters of the area or by more than 50 percent of the owners of land in the area, two additional public hearings shall be held by City Council to consider the annexation of the proposed area, pursuant to Section 43.0686 of the Local Government Code. (One Public Hearing held at the January 2, 2024 City Council meeting)
• The portion of the subject property that is proposed to be annexed on the southeast corner of FM 543 and CR 202 is currently under construction for single family uses. The portion of the subject property that is proposed to be annexed on the north side of FM 543 and approximately 160 feet east of Lantana Drive is currently undeveloped.
• 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 pursuant to the terms outlined in the written agreement for the provision of municipal services (known as the Service Plan).
• The Texas Local Government Code stipulates that solid waste collection must be available pursuant to the terms outlined in the written agreement for the provision of municipal services (known as the Service Plan).
2. Development Requirements.
• All necessary public improvements will be required at time of platting, unless otherwise specified in an approved facilities, development, or annexation agreement.
• Upon annexation into the city, the annexed area will be subject to the Zoning Ordinance and Subdivision Ordinance, unless otherwise specified in an approved facilities, development, or annexation agreement.
• Upon annexation into the city, development of the annexation area will be subject to the payment of a proportionality fee and/or impact fee, which represents a roughly proportional amount necessary to offset the roadway infrastructure capacity needs of the subject property, unless otherwise specified in an approved facilities, development, or annexation agreement.
FINANCIAL SUMMARY:
• Annexation of additional property has financial implications for the City. However, based on the size and location of the property being annexed, it is not expected to have a significant financial impact to the city.
• Although the developers will be responsible for upgrading roads and extending utilities as development occurs, 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.
o 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
o 5 points for code enforcement, plan review, etc.
• The effects of additional annexation on ISO ratings are cumulative. The City’s current ISO rating is 1 on a scale of 1 to 10, with 1 being the best and 10 being the worst. The latest evaluation was conducted in 2020. An ISO rating of 1 is required to be evaluated every 4 years.
• Annexed parcels are subject to City property tax. These tracts may currently have an agricultural valuation classification with Collin Appraisal District (CAD). An AG 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 AG 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:
• Annexation requests are considered solely by the City Council. However, the associated zoning request was considered by the Planning and Zoning Commission at the December 12, 2023 meeting and received a favorable recommendation by the Commission in a 6-0-0 vote.
OPPOSITION TO OR SUPPORT OF REQUEST: Staff has received no letters of support to this request and one letter of opposition. This does not include emails or letters that may have been sent directly to members of the Council. As part of the Planning and Zoning Commission Public Hearing(s), Staff has not received any citizen comments through the online citizen portal.