Title
Conduct a Public Hearing to Consider/Discuss/Act on a Petition to Annex (Case No. 23-0006A) and a Request to Zone (Case No. 23-0106Z) a Portion of the Subject Property to “PD” - Planned Development District, Generally for Residential and Commercial Uses; and Rezone a Portion of the Subject Property from “PD” - Planned Development District, “C” - Planned Center District, “O” - Office District, and “SF-5” - Single Family Residential District to “PD” - Planned Development District, Generally for Residential and Commercial Uses; and an Associated Annexation and Development Agreement with McKinney Ranch, LTD., Honey Creek Investments, LLC, and Barcelona 93, LTD (Case No. 23-0015DA); the Subject Property being 1,649 Acres Generally Located East of FM 1461 (Future Lake Forest Drive) and County Road 166 and South of County Road 168 and FM 543, and Accompanying Ordinance(s)
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: September 17, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Director of Planning
Caitlyn Strickland, AICP, Planning Manager
Jake Bennett, Planner II
RECOMMENDED CITY COUNCIL ACTION: Staff recommends approval of the proposed annexation and development agreement, annexation, and zoning/rezoning request with the following special ordinance provisions:
1. The subject property shall be subject to the Proposed Annexation Ordinance attached hereto; and
2. The subject property shall be subject to the Annexation and Development Agreement attached hereto, which shall be subject to the following condition of approval:
a. Exhibit K (Capital Improvements Budget) shall be updated to include more detailed and accurate information, subject to review and approval by the City; and
3. The subject property shall be zoned “PD” - Planned Development District and shall be subject to the following special ordinance provisions:
a. The subject property shall develop in accordance with the attached Zoning Exhibits A-H.
APPLICATION SUBMITTAL DATE: November 7, 2023 (Original Application)
March 27, 2024 (Revised Submittal)
May 30, 2024 (Revised Submittal)
July 29, 2024 (Revised Submittal)
August 13, 2024 (Revised Submittal)
ITEM SUMMARY:
Petition to Annex (Agenda Item No. 23-0006A)
• Pursuant to Chapter 43 (Sub-Chapter C-3) of the Texas Local Government Code, the applicant has submitted a petition for voluntary annexation into the City of McKinney for a portion of the subject property, approximately 52.79 acres of land. The remaining 1,596 acres of the subject property are already in the McKinney City Limits.
• The 52.79-acres proposed for annexation are currently located in the Extraterritorial Jurisdiction (ETJ) of the City of McKinney. The purpose of the ETJ is to promote the general health, safety and welfare of a person residing in and adjacent to the municipalities. The Subdivision Ordinance applies to property within the ETJ; the Zoning Ordinance does not.
• As required by State Law, the applicant has also executed an agreement outlining the provision of municipal services associated with the proposed annexation (known as the Service Plan). This agreement for services will be included as an exhibit to the Annexation Ordinance.
• The 52.79-acres proposed for annexation are located within the McKinney Independent School District.
• Because this annexation is at the request of the property owner, the developer of the subject property is responsible for extending adequate infrastructure to the site as the property is developed, unless otherwise specified through an executed Annexation and Development Agreement. The applicant has proposed a such an Agreement, which is described in further detail below.
• Staff recommends approval of the proposed annexation (Agenda Item No. 23-0006A), including the proposed Service Plan for the provision of municipal services and the proposed Annexation and Development Agreement (Case No. 23-0015DA).
Request to Zone/Rezone (Agenda Item No. 23-0106Z)
• The applicant requests to zone and rezone the subject property generally for a range of residential and commercial uses. The applicant has provided a zoning exhibit and additional exhibits that divide the property into Planning Areas and Districts, with associated development regulations that stipulate the permitted uses and development standards that each must follow. It is Staff’s professional opinion that the proposed zoning request aligns with the districts and placetypes designated in the Comprehensive Plan.
• As such, we recommend approval of the zoning request (Agenda Item No. 23-0106Z).
• In accordance with State Law, the proposed zoning request was considered by the Planning and Zoning Commission at the August 27, 2024 meeting and received a favorable recommendation by the Commission in a 7-0-0 vote. As part of the August 27 Public Hearing, Staff received one letter of opposition on the proposed zoning request.
• Detailed information regarding the zoning request and Staff’s full evaluation is attached to this agenda item as “23-0106Z - Zoning Request Information.”
Annexation and Development Agreement (Case No. 2023-0015DA)
• In association with tonight’s annexation and zoning request, the property owner is also proposing an Annexation and Development Agreement, which outlines specific terms governing the use and development of the property and annexation of the portions of the property located within the ETJ.
• The proposed Annexation and Development Agreement generally addresses the following topics:
o Requires the dedication of land to the City for an elevated water storage tank, fire station, parks maintenance facility, and other municipal uses;
o Requires the dedication of at least two city parks that are at least 10 acres in size, $3 million in park design and construction, in addition to other open space amenities and community enhancements;
o Establishes the potential for a partnership for up to 50 affordable housing units;
o Requires the dedication and construction of at least two lanes of Laud Howell Parkway with the first phase of development (open by December 31, 2027);
o Requires the City to contribute up to $18.5 million towards the construction of a six-lane bridge over Honey Creek;
o Establishes architectural standards for all land uses within the master-planned community;
o Establishes a maximum District Bond amount of $350 million; and
o Establishes a requirement to notify the City before the sale of any District Bonds.
• In February 2024, the City Council consented to the creation of a Municipal Management District (MMD) through the Texas Commission on Environmental Quality (TCEQ), subject to specific conditions (2024-02-020(R)). One of the conditions was that on or before September 30, 2024, the developer must enter into an agreement to govern the use and development of the subject property with the City. The City Council’s approval of the proposed Annexation and Development Agreement will satisfy this condition and clear the way for the creation of an MMD. This MMD will be the first of its kind in McKinney.
• Staff recommends approval of the proposed Annexation and Development Agreement, conditioned upon Exhibit K (Capital Improvements Budget) being updated to provide additional detail and more accurate cost estimates, subject to review and approval by the City.
BACKGROUND INFORMATION:
1. Annexation and City Services.
• The annexation of land is governed by Chapter 43, Sub-Chapter C-3 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 on request of the owner(s). The proposed annexation is following these statutory obligations.
• The subject property that is proposed to be annexed is vacant land.
• 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 subject property 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 subject property 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.
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 developer 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 2018. An ISO rating of 1 is required to be evaluated every 4 years.
• Annexed parcels are subject to City property tax. This tract 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.
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 Hearings, Staff has not received any citizen comments through the online citizen portal.
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 August 27, 2024 meeting and received a favorable recommendation by the Commission in a 7-0-0 vote.