2019-185 Hunter Cole Ranch UpdateDate: November 1, 2019 Report No. 2019-185
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Update on Hunter Cole Ranch development
BACKGROUND:
Hunter and Cole Ranch is a proposed 6,000-acre master-planned development west of I-35 West and east
of Robson Ranch. Hunter Ranch is represented by Hillwood Communities, and Cole Ranch is represented
by Stratford Land. The proposed development is located within the city limits and is designated as a
Master Planned Community District under the Denton Development Code. The development’s buildout is
expected to occur over 40 years and is anticipated to include:
• 15,717 single family units
• 5,090 multifamily units
• 424 commercial acres
• 101 industrial acres
Because projects of this size require construction of significant public infrastructure, the developers will
pay for the construction of such improvements and seek reimbursement through a Municipal Management
District (MMD). An MMD is considered a governmental agency and a political subdivision of the
state. The MMD finances public capital improvements and/or services by imposing property taxes,
special assessments, and/or impact fees on property owners within the district who are benefiting
from such improvements. With that source of revenue, and once the assessed value of the property is
10 times greater than the amount of debt to be issued, the MMD can issue bonds, which are then used
to reimburse the developer for the up-front cost of the public improvements.
On February 12, 2019, the Denton City Council passed resolutions of support for the creation of the
MMD to be considered during the State of Texas’ 2019 Legislative session. The district was approved by
the Legislature on June 14, 2019. The MMD’s approval is non-binding and provides the City of Denton
the option, but not the obligation, to create the MMD. As a result, activation of the MMD will be
contingent upon the Denton City Council passing a consent resolution. Accompanying the resolution will
be operating and project agreements. A brief description of each agreement follows.
• Consent Resolution – Consents to the creation of the Hunter and Cole Ranch Improvement
District and the inclusion of the land therein. Allows for the acquisition, construction,
improvement, financing, operation, and maintenance of improvement projects such as roads,
utilities infrastructure, and parks and recreation facilities. Construction of improvements require
City of Denton approval of plans/specifications and inspection of facilities.
• Operating Agreement – Authorizes the district’s construction, operation, financing, and
conveyance of improvement projects such as roads, utilities infrastructure, and parks and
recreation facilities. Includes tax rate limitations and financial reporting requirements.
• Project Agreement – Establishes the need for infrastructure and facilities to serve the property.
Defines the responsibilities and methods in which Improvement Projects such as water,
Date: November 1, 2019 Report No. 2019-185
wastewater, roads, and recreational facilities will be acquired, constructed, improved, financed,
operated, and maintained. Includes provisions related to design guidelines, affordable housing,
and gas well setbacks.
To prepare for Council’s consideration of the above items, staff will be scheduling work sessions to
review and discuss key provisions contained in each document. The first work session is tentatively
scheduled to occur during the November 19, 2019 City Council meeting.
Currently, City staff and representatives from Hillwood and Stratford are meeting on a regular basis
to negotiate and finalize the proposed agreements that will be considered by Council. As part of this
effort, staff has commissioned several studies, the objectives of which are to validate the accuracy of
the project’s financing plan, ensure adequate infrastructure and facilities, and prevent subsidization
by current and future residents. A description of each study follows.
• Fiscal Impact - The City contracted with TischlerBise to conduct a fiscal impact analysis of the
development. They will create a fiscal impact model to test the viability of various development
scenarios, including financing arrangements, costs, and return on investment. The final analysis
will present all the major findings and reasons for the results. The study is anticipated to be
completed by mid to late November.
• Water & Wastewater - The City contracted with Freese and Nichols to conduct a hydraulic
analysis evaluating the impacts of the proposed developments on the water distribution and
wastewater collection systems. The analysis deliverable is a technical memorandum establishing
design criteria, evaluating future system demands, evaluating regulatory requirements, and
proposing a capital plan for major regional and on-site infrastructure improvements necessary to
support this development. The study is anticipated to be complete by early December.
• Traffic Assessment - The City contracted with HDR Engineering to assess the proposed traffic
carrying capacity of the transportation infrastructure with respect to the traffic generated by the
proposed development as well as the regional traffic in and around the proposed development.
As part of the assessment, the consultant will calculate the proportionality of the local traffic
generated by Hunter and Cole Ranch vs. regional traffic along all the proposed roadways within
the Hunter and Cole Ranch. Additionally, a phasing analysis will be conducted to identify the
phasing of proposed transportation infrastructure (roadway network) based on project (land use)
phasing. The study is anticipated to be completed by mid to late November.
• City Facilities - The City contracted with Quorum Architects to conduct a program and space
needs analysis that projects future needs for a Service Center and Solid Waste Transfer Station
facilities located in the southwest area of the city. The facilities would house field and service
operations to include Solid Waste, Parks, Streets/Drainage, Water and Waste Water Utilities,
Fleet, and Denton Municipal Electric. The study will include an executive summary and matrix
with details related to staff and space needs. The study is anticipated to be completed by early to
mid-November.
The above studies will be critical in the evaluation of the development’s feasibility and economic
viability. As a result, staff has communicated to the developer that the schedule of Council work
sessions and consideration of the agreements will be contingent on completion of the studies and
resolution of concerns raised by staff.
Date: November 1, 2019 Report No. 2019-185
STAFF CONTACT:
Ethan Cox
Director of Public Works
(940) 349-7421
Ethan.cox@cityofdenton.com
PARTICIPATING DEPARTMENTS:
City Manager’s Office, Public Works, Capital Projects, Water & Wastewater, Finance
STAFF TIME TO COMPLETE REPORT:
2 hours