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06/29/2006-CC-Minutes-Work SessionMINUTES: CITY COUNCIL WORKSHOP JUNE 299 2006 PRESENT: Mayor Joe Higgs, Councilman Glenn Ervin, Councilman Robert Patton, Councilman Andy Garza, Councilman Mike Walker, Councilman Mike James OTHERS PRESENT: City Manager Jack Smith, Engineering Coordinator Samantha Renz, Police Chief Curtis Amyx, Electric Superintnedent Mike Prater, Liz Springer, John Springer, Joe Falls, Kathy Floyd, Rod Zielke, Scott Norris, Woodrow Barton, Jerry Jenkins, Vickie Jenkins i. Mayor Joe Higgs called meeting to order. 2. Discussion Regarding Tomlin Group (LOOK UP ITEM) Mayor addressed audience and indicated they may ask questions, but requested that no derogatory comments be made. He asked Mr. Rod Zeilke to make his presentation. Rod Zeilke, Tomlin Group representative, addressed the Council in regard to a proposed development East of Sanger. He gave a brief history of the project, and indicated that Tomlin Investments is a developer of high quality master planned communities. They have an office in Addison, and their most recent project was in Frisco. He indicated that on October 17, 2005, Tomlin Investments was encouraged by Council to proceed with a development agreement and concept plan on this project. He would now like to get feedback from the Council and define a process to refine these documents. Mr. Zeilke continued to explain that they had developed a 3800 acre project in Frisco, and this is similar to what they had envisioned for Sanger. They are looking at 1000 acres East of the High School bordered by FM 455 and McReynolds Roads. The master plan they have for Sanger will be highly amenitized, and include large greenbelt open spaces, hike and bike trails, pedestrian friendly access throughout the community, village park and playground areas, multiple lake and water features, highly regulated landscape and development codes, school sites and some local retail. Mr. Zeilke continued to explain that a Development District was needed because a quality market buyer is requiring upgraded amenities to be in place before investing. The utilities and access can be difficult for cities to put in place and a District can help with the cost. He explained that the issues to be considered were the development agreement, which he felt was top priority and the concept plan, which could be designed concurrently with the development agreement. Mr. Zeilke suggested the council form a sub -committee possibly consisting of the Council, a District Attorney, the City Engineer, the City Manager, possibly Bond Council and any others the Council would desire. Tomlin would place money in an escrow account to fund city hired committee consultants. He indicated the committee could work with other City staff and Tomlin staff to prepare a draft agreement for Council consideration. Mayor indicated audience could ask questions. David Herndon, 727 Dove Ridge, expressed concerns regarding traffic. He asked how the Council would address the issues of increased traffic from this development. Mr. Zeilke indicated the whole intent of the District is to be able to fund everything the development will use, including improvements to the access streets. They envision that it will be teir responsibility to improve the road to handle the traffic, drainage and other utilities. Scott Norris, Tomlin representative, indicated the ultimate size of the improvements will benefit this development, but also the adjacent properties as well. Mr. Zeilke indicated these would be the type of things included in the development agreement they are requesting. Vickie Jenkins, Sanger Resident, asked them to explain the District and how the process goes. Mr. Zeilke indicated there are a variety of Districts, the type of District this will be still has to be worked out. There are fresh water Districts for instance. These are basically Districts created when 25% of the improvements are in place and taxes are being paid. Then the District will sell bonds to help complete the development. The bonds were discussed. Mr. Zeilke indicated the agreement would state that the City could annex the District at any time they chose. Once the District became profitable they could annex it into the City Limits. Discussion continued regarding bonds and annexation of the development. Discussed how the District is funded. Basically, the developer pays 100%upfront and is then reimbursed for infrastructure. Barbara Martin asked what the average impact was on a $250,000.00 home. Councilman James indicated it was about 20 to 30 cents more per $100.00 valuation. Ms. Martin indicated that she had heard there were an increased number of foreclosures in these Districts to the extra burden of taxes on home owners. Discussed buyers market, home sizes, builders, and the development. Vickie Jenkins asked who would maintain the amenities. Scott Norris indicated that the Home Owner's Association would maintain them. Gary Bilyeu asked how many houses would be in the development. Mr. Norris indicated there would be 3400-3500 homes. Mr. Bilyeu asked what the buildout or timeline would be. Mr. Norris indicated they hoped that the first phase would sell out rapidly, but basically it is a function of the market. Probably a 10 to 15 year buildout. Jerry Jenkins, Chairman of the Planning and Zoning Commission, asked the Council what the current sewer capacity is. City Manager indicated the City is in the process of being permitted for a new sewer plant, it will have a capacity of one million gallons for the first phase. Mr. Jenkins asked how many lots were currently platted in the City. Staff indicated about 1200. Joe Falls, 4489 McReynolds Road —partner in the Ranger Creek development, asked about the details of the creative financing. He asked why they were requesting something different than the requirements he has to meet. He indicated as a developer he wanted a level playing field. Mr. Zeilke indicated they are not asking for anything special. They will abide by all subdivision r�files and zoning ordinances. Discussion regarding development, improvements and taxing. Mayor asked what other cities they had done a District in. Scott Norris indicated they have done developments in Terrell E.T.J., and Westin and they are working on agreements with Fort Worth and Houston. Discussed other developments and if there were or were not Districts. Discussed bonds and funding. Councilman VValker asked if they had ever seen a development not sell bonds and go broke. Mr. Zeilke indicated he had not. Joe Falls asked if the District had the ability to get bonds at a rate better than the city. Scott Norris indicated they would either get the same rate or a rate slightly above municipal rates. The market has a multitude of these Districts being created, they are becoming a more common bond purchase. John Pearson, 7736 FM 428, asked what the downside is to the city if the District is funding the infrastructure. Mayor indicated the City may have to take over the binds eventually. Discussion followed regarding the District and the taxes. Discussed that the city can annex or take over bonds in phases if they wish. Councilman James indicated he would like to see more of the details, Councilman Garza indicated he did not understand why they could not add infrastructure cost to the lots like every other developer did. Discussed that the distance to bring infrastructure would increase the cost considerably and it would not be marketable. Discussed they would use as much local business and advertising as possible. 3. Meeting Adjourned.