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02/25/2008-CC-Minutes-SpecialMINUTES: City Council Special Called Meeting (Joint Meeting with Sanger Independent School District) February 25, 2008 PRESENT: Mayor Joe Higgs, Councilman Thomas Muir, Councilman Mike Walker, Councilman Andy Garza, Councilman Robert Patton MEMBERS ABSENT: Glenn Ervin OTHERS PRESENT: Jack Biggerstaff, School Superintendent, Sam Burrus, SISD Board Director President, Christy Koonce, Ralph Amyx, Lynn Stuckey, Jeff Morris, members of the school board, City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez (School Board Members absent: Kristy Curtsinger and Christina Waggoner) President of the School Board Sam Burrus called the meeting to order, Lynne Stuckey gave the invocation which was followed by an introduction of all the participants that were at the meeting. Mayor called meeting to order after Mr. Biggerstaff called the school board meeting to order. Mr. Biggerstaff gave thanks of appreciation on behalf of the Board of Trustees to the City Council and the City Manager for having the interest of the SISD in their work negotiations with Sanger Ranch that benefitted the school concerning donation of land. 1. Discuss Sanger Ranch Development. City Manager addressed the boards with discussion regarding Sanger Ranch Development. He advised the City has entered into a development agreement with Sanger Ranch that will consist of 3700 residential units, 3200 single-family and 500 condominiums or apartments. There will be some commercial development, but most of the development will be residential. The plan for development of the property will be within the next 20 to 30 years. The next step is for the establishment of the taxing district that could take up to two years. They have two methods on how Sanger Ranch can proceed, one is to go to the County and the other is to go to the State Legislature. This is an election year and it is not a good time frame to approach the County in the establishment of a district. This is a decision that Sanger Ranch must make. City Manager proceeded with the highlights of the Development Agreement. Sanger Ranch is working on buying the water CCN from Bolivar which will make the City the supplier for water and wastewater for the development. The development will be provided with all services that the citizens in Sanger receive. The City's tax rate will not be affected. The City did get some economic incentives that will be rebated back to Sanger Ranch as fee credits. This will give the City some infrastructure monies up front that will help the City in project improvements. There will be some road improvements, to include a four -lane on McReynolds Road from the railroad tracks out halfway to a collector road that will be in their development. The development will also be responsible for putting two lanes on McReynolds passed that point. They have agreed on conducting a traffic study based on their growth. When the traffic study calls for it, they have agreed to put in a turn -lane and a four-way traffic stoplight at Indian Lane and McReynolds Road. They also agreed to give $50,000 toward a temporary light at FM 455 and Indian Lane which will be triggered upon their first final plat. City Manager gave the advantage this has concerning retail development. This will bring the rooftops that will have an impact on retail development. The other is diversification on household stock to include a wider range of development. He advised that 92% of the homes last year were under the DFW median of $200,000. The larger homes that range between $200,000 to $500,000 are not getting built in the City. These homes have a higher tax base that benefits both the City and Schools. Mr. Tomlin (Sanger Ranch) plans to bring a different demographic to the City in their homes that will range from $200,000 to $250,000 in today's market. They plan on building a mixture of price range homes. He advised that in Mr. Tomlin's development of Lone Star Ranch in Frisco, consists of a mixture of homes ranging in value up to a million dollars. When they began their development in Frisco they started with the same price range as they are intending to start in Sanger. They have done a good job with this development. Ralph Amyx, Board Trustee, inquired on how difficult will it be for them to acquire the CCN from Bolivar Water. City Manager advised that if Sanger Ranch wants to pay Bolivar's price, it won't be too hard. They can also proceed with the new legislation that passed last year that allows the property owner to request service from the rural supply. If the rural supply can't provide service then the development can request for the property to become dual certified. There is a legal process that has to be followed. City Manager proceeded with a brief summary on the process. This is a state-wide problem and has to be solved in the legislative level, which can take up to three years. Discussion concerning the legislative process and the cost of $3,000 per acre that Bolivar is requesting from the developer. 2. City Manager proceeded in a brief summary of other residential development. Builders are not building homes unless they have a customer. He gave a comparison of homes that were built last year. There were 17 housing units built in the 1" quarter of 2007 and only 7 for this year. There are a couple of builders that are active in the market. Currently, there is not any new development with residential. There is some new small retail development. As the city continues to grow it will become more appealing to retailers. Discussion continued with prime retail property available in Sanger for retail. 3. City Manager continued with discussion regarding Industrial Development. There is a rezoning request on 200 acres north of Wal-Mart for Light Industrial use. This will become a Light Industrial campus. The owners of the property have two national industrial developers who are interested in the property. They will also have an issue with Bolivar Water since the demand for water will run at 780,000 gallons of water a day. The concern is that Bolivar might not be able to meet this demand. The City is also on a short list for a steel manufacturer that will create the possibility of 50 jobs. The advantage is the Interstate and the Rail accessibility in the developing of this property. 4. City Manager gave a summary on the keys for the future. He emphasized the importance of diversification in residential development, recruiting industry to create jobs and tax base, developing infrastructures to promote growth and funding sources, revising zoning and subdivision ordinances to ensure growth is in accordance with the master plan. It was followed with a summary on the quality of life issues that the City is currently facing. The downtown streetscape project is out for bid, looping at property for a new soccer complex, and baseball complex improvements will be completed this year. The big priority is walking and hiking trails and the need for a regional park. We are also making sure our landscape requirements are not too restrictive but will enhance development. City Manager advised it is important that both entities work together in a relationship that is supportive. There will be times of disagreement, but the most important is to disagree and still maintain a healthy relationship between the two entities. Mr. Biggerstaff continued with an overview of statistics of the 3'' quarter of 107. In the DFW area, job growth dropped down to 25% in the past year. Starts and closing with housing dropped 8% and 6% from the 2"d to the 3'd quarter and will continue to drop. The new housing activity in regards to starts was the highest in the 3rd quarter of `05 with 66 starts. The low point was the 3rd quarter of 107 with 10. In closings, the high point was the 3'd quarter of 06 with 63 closings. The low point was the 3'd quarter of '07 with 16. The two most productive developments were Sable Creek and Huntington Ridge. He continued with housing forecasts based on projections from their demographers. In the 41' quarter of 106 to the 3rd quarter of 107 there were 109 closings; 4"' quarter of'07 to the 3rd quarter of'08, they are projecting 75 closings. They are doubtful this projection will be reached. The projection for the 4"` quarter of '08 to the 3rI quarter of 109 is 117 closings. The demographers think that they will not come out of this until the end of 2008. He advised that the highest foreclosures are in Quail Run which is a concern. City Manager advised the majority of those foreclosures were owned by one builder and those homes are on the market for sale. There were a few individual foreclosures. Brief discussion. Mr. Biggerstaff continued with their demographer enrollment projections: in 2007- 2008, 2585 enrollment, maybe they will hit 2540 or 2550; in 2008-2009, 2643 enrollment; in 2009-2010, 2725 enrollment. He would like to hit those numbers. The revenue they generate in local taxes, whether it goes up or down, the state will balance it out for the school. They are dependent on kids to generate revenue into the school district. The concern he has with the enrollment projections, specifically in 08-09 is a false growth pattern. He explained that the determination factor in experiencing growth is attendance at the Kindergarten level. Mr. Biggerstaff discussed the new elementary school and the impact of going to attendance zones, which he feels will reduce the impact of traffic on FM 455 West. He explained the grade levels attendance on the East and West side campuses. They have built Butterfield to allow for growth, which is where they anticipate their highest impact. Discussion continued on the long-range plans for growth. They plan to develop neighborhood schools and plan to open a 6' grade center. The growth capacity for the high school is 1500 enrollments. Mr. Biggerstaff advised that the academic envelope of Butterfield Elementary is constructed out of ICF or insulated concrete form. This is an energy savings factor and the building will be a safer building and more tornado resistant. The school will have a GL Thermo system at a cost of $300,000. They have projected that somewhere in year 5 & 7 they will recoup back the cost in the savings. The building will have a historical look with environmental landscape. Discussion followed with the importance of TX DOT to widen FM 455 to help alleviate the congestion. The factors that trigger the State to move forward on a project of this matter are death counts. Discussion continued with the pros and cons of having two high schools. Mr. Biggerstaff indicated this will impact a lot of people and the impact concerning attendance zones. He emphasized that it needs to be addressed as what is the most beneficial for the students. Mr. Biggerstaff thanked Council and the City Manager for all the help. He also advised that they have to take occupancy by August 1. Dr. Stuckey commended all board members and the consultants that served on the committee in the negotiations for the Sanger Ranch Development. Mr. Brice continued with ETJ discussion and the letters that have been sent to individual property owners concerning voluntary annexation into Sanger's ETJ. There will be a meeting on Tuesday to address citizens with any questions they might have regarding ETJ annexations. The reason for doing this is that the City of Denton now has a 5-mile radius circle for their ETJ. The City is trying to keep Denton from surrounding the City's ETJ. If the property owner does voluntarily enter the E.T.J. the only requirement that they comply with is the City's platting requirements. Meeting adjourned.