01/20/2004-CC-Agenda Packet-Work SessionAGENDA
CITY COUNCIL - WORKSHOP
TUESDAY, JANUARY 20, 2004
6*00 P.M.
201 BOLIVAR
1. Call Meeting to Order.
2. Discussion Regarding a Proposed Planned Development Presentation by Centurion
(Rick Ezzell)
3. Discussion Regarding a Proposed Planned Development Presentation by K.D.
Development (Johnson/Payne),
4. Adjourn.
Pursuant to the Texas Open Meetings Act, Chapter 551, Texas Government Code, one or more
of the above items may be considered in executive session closed to the public. Any final
action, decision or vote on such matter will be made in open session following the conclusion
of the executive session.
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Rosalie Chavez, City . cretary
40
Date &Time Posted
This facility is wheelchair accessible and accessible parking spaces are available. Requests for
accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact
the City Secretary's office at (940) 4584930 for further information.
Wilson Associates
600 North Pearl Street Suite 900
Dallas, Texas 75201
email:
voice: 469.231.3060
facsimile: 214.764.0789
December 125 2003
Jack Smith, City Manager
City of Sanger, Texas
PO BOX 1729
Sanger, Texas 76266 Fax. 940.458.4180
Email:
RE: Ezzell Tract /Centurion American Development Group /North Sanger ETJ / Bolivar Water CCN area
Dear Jack:
Thank you and the City for taking time out of your schedule and meeting with myself and the
Ezzell Tract representatives last month. As we discussed in that meeting this letter shall outline
our requests to the city and provide as a guideline to reaching a "Development Agreement"
between the City and the Centurion American Development Group. This will allow a process to
move forward in an effort to promote a quality end product on the tract located on Interstate 35
in the northernmost Extra Territorial Jurisdiction of Sanger and wholly in the CCN of Bolivar
Water Supply Corporation.
Centurion American Development Group seeks to develop their tract in a mixed use Plat that
includes both residential and commercial elements. As we outlined in the meeting our
development plans are very far north and we believe that in order to make our development
marketable we need to acquire reimbursements from a tax or assessment sufficient to offset
water, sewer, drainage and roadways within the project. This offset schedule would be very
similar to the type of offsets in the marketplace on the projects located along US380. These
projects have used their offset ability in the marketplace to make their area marketable with
price, features and quality. We have a strong belief that this far north tract on I35 will work
effectively in that vein.
With that said, we make two options available to the City of Sanger:
First Option is annexing only the Commercial Tract and a 10 ft strip encompasing our
residential with an overall development agreement that allows a schedule to annex the
residential after certain threshold requirements are met. This might work as follows:
1. Centurion American agrees to request Annexation of the Commercial Tract and a ten
foot strip surrounding the residential tract.
2. Centurion American agrees to pay all requisite costs of the transfer of CCN for entire
tract from Bolivar WSC to Sanger, Texas with amount being offset with impact fees
credits.
3. The City of Sanger consents to "Water Control Improvement District' (WCID) for the
residential portion of the tract only. NO DISTRICT ON THE COMMERCIAL
SECTION. A WCID is the same vehicle that Highland Park and University Park in
Dallas were established upon four decades ago. This is not a MUD, although powers are
similar, we would agree to the following limitations on establishment by the Texas
Commission on Environmental Quality:
A. WCID would be limited to reimbursements of a negotiated amount only in the
agreed categories (Water, Sewer, Drainage, Roadways). We would expect that
limitation to arrive at approximately $12 Million.
B. WCID would limit bond issues to 25 years,
C. WCID would limit tax rate not to exceed $.79/$100 valuation for debt.
D. WCID would pay the City of Sanger a Public Safety fee to equal $0.11/$100 for
Police and Fire Service while not in the City Limits of the City of Sanger, Texas.
E. WCID would be abolished at time of annexation by the City.
Second Option is annexing the entire tract now under agreement. This option would work as
follows:
1. The City of Sanger would approve a preliminary plat.
2. Centurion American would request annexation under agreement.
3. Centurion American agrees to pay all requisite costs of the transfer of CCN for entire
tract from Bolivar WSC to Sanger, Texas with amount being offset with impact fees
credits.
4. The City of Sanger approves consent to Sanger Water Control Improvement District #1
and Sanger Public Improvement District 1;2.
A. WCID would be limited to reimbursements of a negotiated amount only in the
agreed categories (Water, Sewer, Drainage, Roadways). We would expect that
limitation to arrive at approximately $12 Million.
B. WCID would limit bond issues to 25 years,
C. WCID would limit tax rate not to exceed $.79/$100 valuation for debt.
E. WCID would be abolished at time of debt balance equaling $0.
5. The City of Sanger would approve a Section 380 Tax Agreement that rebated back funds
to the WCID with a net balance to Sanger equal to the Fire/Police number listed above
($0.11/$100 valuation).
Looking at both options, Option One seems much simpler and cleaner for all parties involved
and is the arrangement that the City of Lewisville followed with Castle Hills. Castle Hills
remains in the ETJ of the City until debts are paid. The Commercial advantages are granted
immediately and the voters do not get to participate in City elections until such time as the city
deems it proper to annex the property. I know these are concerns on council members and we
are trying to be sensitive to this concern. If the council can overcome all other political concerns
that go along with Option 2 we are glad to proceed under that option.
Remember that the facts surrounding this property are different than some other projects you
may be looking at. First, Bolivar Water Supply Corporation holds the Water CCN and we are
outside your current provision area. Secondly we are very far north in the current development
window. These facts would bolster creation of a Water Control Improvement District from the
State with or without consent. Obviously, we want to reach consent on this and our timeframe
would be reduced on our current schedule. But, it is important for the City Council to
understand this as a difference from other projects.
Between now and January 305 2004 we would like to reach a "draft" Development Agreement
"DA"with you and council representatives as the city deems necessary. This DA would then be
presented to City Council for ratification or amendment as necessary.
We look forward to working with you and wish you all a Merry Christmas!
Sincerely,
Kirk Wilson
Wilson Associates
600 North Pearl Street Suite 900
Dallas, Texas 75201
email:
voice: 469131.3060
facsimile: 214.764.0789
January 153 2003
Jack Smith, City Manager
City of Sanger, Texas
PO BOX 1729
Sanger, Texas 76266 Fax. 940.458.4180
Email:.._ _ ..._................. .1. .
RE: Johnson & Payne Investments / Sanger Ranch Development
Dear Jack:
Thank you and the City for taking time out of your schedule and meeting with myself and the
Johnson & Payne representatives last month. As we discussed in that meeting this letter shall
outline our requests to the city and provide as a guideline to reaching a "Development
Agreement" between the City and Johnson & Payne Investment Group. This will allow a
process to move forward in an effort to promote a quality end product on the tract located on
Interstate 35 in the Extra Territorial Jurisdiction of Sanger and partially in the CCN of Bolivar
Water Supply Corporation.
Johnson &Payne Development Group seeks to develop their tract in a mixed use Plat that
includes both residential and commercial elements. As we outlined in the meeting, we need to
acquire reimbursements from a tax or assessment sufficient to offset water, sewer, drainage and
roadways within the project. This offset schedule would be very similar to the type of offsets in
the marketplace on the projects located along US380. These projects have used their offset
ability in the marketplace to make their area marketable with price, features and quality. We
have a strong belief that this far north tract on I35 will work effectively in that vein.
With that said, we make two options available to the City of Sanger:
First Option is annexing only the Commercial Tract and a 10 ft strip encompasing our
residential with an overall development agreement that allows a schedule to annex the
residential after certain threshold requirements are met. This might work as follows:
1. Johnson & Payne agrees to request Annexation of the Commercial Tract and a ten foot
strip surrounding the residential tract.
2. Johnson & Payne agrees to pay all requisite costs of the transfer of CCN for entire tract
from Bolivar WSC to Sanger, Texas with amount being offset with impact fees credits.
3. The City of Sanger consents to "Water Control Improvement District" (WCID) for the
residential portion of the tract only. NO DISTRICT ON THE COMMERCIAL
SECTION. A WCID is the same vehicle that Highland Park and University Park in
Dallas were established upon four decades ago. This is not a MUD, although powers are
similar, we would agree to the following limitations on establishment by the Texas
Commission on Environmental Quality:
A. WCID would be limited to reimbursements of a negotiated amount only in the
agreed categories (Water, Sewer, Drainage, Roadways). We would expect that
limitation to arrive at approximately $12 Million.
B. WCID would limit bond issues to 25 years,
c. WCID would limit tax rate not to exceed $.79/$100 valuation for debt.
D. WCID would pay the City of Sanger a Public Safety fee to equal $0.11/$100 for
Police and Fire Service while not in the City Limits of the City of Sanger, Texas.
E. WCID would be abolished at time of annexation by the City.
Second Option is annexing the entire tract fnow under agreement. This option would work as
ollows:
1. The City of Sanger would approve a preliminary plat.
2. Johnson & Payne would request annexation under agreement.
3. Johnson & Payne agrees to pay all requisite costs of the transfer of CCN for entire tract
from Bolivar WSC to Sanger, Texas with amount being offset with impact fees credits.
4. The City of Sanger approves consent to Sanger Water Control Improvement District #1
and Sanger Public Improvement District #2.
A. WCID would be limited to reimbursements of a negotiated amount only in the
agreed categories (Water, Sewer, Drainage, Roadways). We would expect that
limitation to arrive at approximately $12 Million.
B. WCID would limit bond issues to 25 years,
C. WCID would limit tax rate not to exceed $.79/$100 valuation for debt.
E. WCID would be abolished at time of debt balance equaling $0.
5. The City of Sanger would approve a Section 380 Tax Agreement that rebated back funds
to the WCID with a net balance to Sanger equal to the Fire/Police number listed above
($0.11/$100 valuation).
Looking at both options, Option One seems much simpler and cleaner for all parties involved
and is the arrangement that the City of Lewisville followed with Castle Hills. Castle Hills
remains in the ETJ of the City until debts are paid. The Commercial advantages are granted
immediately and the voters do not get to participate in City elections until such time as the city
deems it proper to annex the property. I know these are concerns on council members and we
are trying to be sensitive to this concern. If the council can overcome all other political concerns
that go along with Option 2 we are glad to proceed under that option.
Remember that the facts surrounding this property are different than some other projects you
may be looking at. First, Bolivar Water Supply Corporation holds the Water CCN and we are
outside your current provision area. Secondly we are very far north in the current development
window. These facts would bolster creation of a Water Control Improvement District from the
State with or without consent. Obviously, we want to reach consent on this and our timeframe
would be reduced on our current schedule. But, it is important for the City Council to
understand this as a difference from other projects.
Between now and January 30, 2004 we would like to reach a "draft" Development Agreement
"DA"with you and council representatives as the city deems necessary. This DA would then be
presented to City Council for ratification or amendment as necessary.
We look forward to working with you and the City Council.
Sincerely,
Kirk Wilson