Loading...
HomeMy WebLinkAboutMay 02, 2001 Agenda HandoutThe Economic and Fiscal Benefits to the City of Denton from Development of Knellwood Villas Prepared for Southwest Hob?an8 Development by Dr. Bernard L Wemstem and Dr Terry L Clower* April ~-00 ~ Southwest Housing Development (SLID) ~s plnnnmR to braid and operate a nmitt- famdy apartment commumty called Knollwood Villas m the CWj of Denton The project vail be located on the south sute of Mel~inney Street, about ~ male west of Loop 288 The courtyard-da~ed residences will be situated on a 22-acre wooded parcel, w~th no more than 12 ~mlts per acre Tins clustering of a total 264 routs at buddout wdl pe~tmt a greenbelt to remain around the property Kuollwood V'dlas wdl be constructed and marketed as "affordable housing," and household raceme is expected to range between $25,000 and $35,000 Because of the raceme reqmrement, college students wall not be ehg~ole to rent these apartments When the ~_m*ts are fully rented, the remdent populatlun at Knollwood wdl range between 525 and 600 residents Less than 20 percent of the residents wtll be of school age, and the developer has pledged a $500,000 grant for the Denton ISD's "adopt-a-school" program to help mit~gete the ,re?act of school-age cluldreo who tony hve at Kuollwood The project complements the C~y of Denton's 1999-2020 comprehensive plan, winch shows the Knollwood tract to be w~hm an "ex~stmg ne~ghborhood/~fill co,~oat~bd~ty area" The following analysis estimates the econoonc and fiscal unpacts ofbmlchng the proposed housing complex as well as the on-going ~m!?acts of facthty management and mamtenance In addmon, we es~mnte the local economic and fiscal unpacts of the Knollwood residents Finally, we consider the on-going economic and fiscal ~m?acts that would attend the commercial development of a 40-acre Me ~mmedlately adJaCent to the Knollwood site The economic and fiscal ~mp~cts are based on the IMPLAN mput-outpm econonnc modeling system developed by the Minnesota Implan Group, Inc for Denton County The modeled ~m!pacts include the d~rect effects of relevant spendmg for conmuc~on actn~es, propeW./ manasement, store operauons, and other business actn~es, the indirect effects of local vendors, and the mdoced ~mpacts of employees of these firms spending a pomen of their eemings m the local economy Where appropmte, we have adjusted the countywide emmates to reflect the hkely econmmc and fiscal ~mpacts on the C~ty of Danton and the Denton ISD All values are expressed m current year dollars, We be~n with a general desc~ptien of recent demographic ~h~s occurring m the Cay of Denten and Denton County The cban~n? aamn~m~_ iucs of Denton With 432,976 residents m 2000, Denton Cotmty ~s among the fastest growing counues in both Texas end the U S Between 1990 and 2000, the County added 159,451 residents, s ~rowth rate of 58 percent By contrast, the entn~ Dallas*Fort Worth regmn-- tha nation, s fastest, growing major metropohtan are~ posted population ~ams of unly 25 percent during the 1990s What's more, according to projecuons by the North Central Texas Council of Government (COG), Denton County ~s expected to remain a rapidly growing locale for the foreseeable foture, adding another 352,000 residents by the year 2025 The C~ty of Denton grew somewhat more modestly during the 1990s, with population nsmg from 66,270 m 1990 to 80,537 m 2000, an increase of 21 5 percent But the COG expects the city to add another 52,000 residents by 2025 This would represent an average populatton growth rate increase of 2 6 percent per year through 2025 compared ruth the 2 15 percent average mmual growth rate o£the 1990& rm?ommfly, Denton County and Cay are not just bedroom comnn~n~ea They are major employment centers as well At present, about 115,000 persons work m Denton ,County, wah 45,000 =ml~loyed m the Cay of Denton. The COG expects non- constmetton employment m the County to reach 245,000 by 2025, ruth the City of Denton sccountm.__g for 66,000 o£these jobs For years, the Cay has suffered from s lack of affordable housmg/'or nnddle-class households, noceasitatmg long commutes for many teachers, vamm~raUve, techmcal, and health-care workers employed in the Cay Criven the projected raptd increase m populutlon and ni~ployment within the city hm~ts, D~lton nm~t plan strategically for honmng options to accommodate these new residents and workers One solution to the s~xortage of affordable housing in Denton would be to pemut more rra*ltl, fsmdy developments, such as tho one planned at Knollwood Vdhs In adclmon to prov~dlng housmg:for Denton ctt~xns, such projects help to preserve open space because they don't consu~e nearly as much land per household as ts the case wah smgle-fsm~ly homes (To accommndate 264 households tn angle-family homes reqmres a mmmmm of 66 acres wlnle Kuollwood accomphshed the ~mme on only 22 acres with ample opan space) What's more, to the extent m-town housing opttons are avatlable to those worlnn~ m the cay, commuting tunes and chstancos are reduced, with attend~Ant ~m?rovements m s~r quahty, while urban sprawl is reduced Ec~nnmte k~?ncts From conslmctlon Property d~opm~ ~d ~ of ~e ~ts ~d relat~ ~es ~ ~ aborn $19 1 ~llton ~ ~dm~ ~ ~te abo~ $22 3 ~ll~on m ~o~c a~ m ~e C~ of ~on ~d ~ppo~ ~ 200 t~o~ ~-~ ~al~t (~) jobs pa~8 ~ $7 3 m~11~on m ~ges ~d ~es (~ S~ Table) On_aom_~ ~_~_om~c and fiscal tm~_ acts ofKnollwood V~las The on-gom~ econounc and fiscal ~m?acts of the Knollwood Villas housing development include expenditures for property management and maintenance and the ~m?acts of Knollwood residents spandmg a pomon of their eanungs m the local economy To avmd double countmg of potantud la?acts, we have assumed that only about one-third of the Knoilwood dwellers will be new remdents of the C~y of Denton Tins assnmption will likely understate the total ~m.?act of the spending by Knollwood residents As noted above, there is a shortage of affordable housmg m the Cay of Denton for persons m the tacoma range of Knollwood's target market Even ff these mdvaduals are currently workn~ m Denton. they are likely lr~atg outsule of the city and tsk'mg much .of their spendm$ to the comm,m~t~es m winch they remde Our estranges also allow 'for an average vacancy rate of five percent, though gtven the l~mlted amount of affordable housmg m Denton, any vacant umts at Knollwood should be quickly re- released Profiles o£the targeted residents surest that. when fully developed. Knollwood dwellers will have a combined household income of more than $8 m~ll~on per year If one-tlurd of these households are new remdents to Denton, their spendmg, when combmed with expenditures for pmpe~ mAnsgomont and msmtemmce at Knollwood V'flla~, will spRr $3 ? m~lho~ m ec.~oon~c activ~y m the City ofDentm~, genarate almost $800,000 m new recent, and ~ppor~ 30 new VrE lobs (see 5mnmary Table) Estimates of the fiscal ~mp. ac~s of the Knollwood Villas and ~ts residents on local taxing authontlos are based on d~rec~ property taxes end sales and use taxes from spending by new res~dants and prope~ mRuagers The model used for the emmates of hkely new sales and use taxes accounts for the spending proffie of households m the qushfied income range ofKnollwood Vdlss Combmed prope~ and sales and use t~xes ~ add abou~ $123,000 per year to City of Denton revenues Denton County will see an merease of more than $50,000 per year Most unportantly, the Denton ISD will enjoy a $408,000 boost to annual revenues when Knollwood V~fllss is fully developed (see S,,mm~y Table) These revenues will be m add,ion to the $500,000 pledge from SHD to the '%dop~.a-school" program and the emmated $323,000 that will be generated annually by SHD's Bluffvtew Villas project B~ause Bluff~ew is an independent semor comm~mlty, the Denton ISD ~ have no costs assocmted w~h the new revenues Economic smd fiscal m~_ acts from Anmllarv develoom~nt near Kuollwood VilLas Perhaps the most s~mflcant ~r~.act from the construction and operation of Knollwood Villas will be the stimulus to commercial development on adjacent and nearby propertxes` Fo~y seres to the east and south of the proposed Knollwood development are currently zoned for commercial land uses Tracts to the west of the s~te are zoned for smglo-famfly homos, W~thout quemon, the addmon of 264 households at Knollwood V'tHas, plus the braid-out of the single=family tracts, wtll st~rm~late the commerolal development on the 40 nearby acres Though no formal plans currently ex~st, the most likely scenario for the bulld-ont of the commcrclal acreage ts a mix of retail stores and low-nsc office bufldings~ To provide an lu&catlon of the potantlal economic and fiscal re?acts that would attend anctlhry development on ndjscent tracts, we have modeled a development scenario on 40 acres includln5 5 acres of gns statton/convemence store properties, 10 acres in restaurants (with private clubs for selling hquur by the drink), 15 acres of shopping center mchutmg some professional serwces, and 10 acres devoted to s low nsc (3-stole) office braidings A~ full development, we would expec~ ahnos~ 450,000 square fee~ of commercial braiding space to occupy the 40 acres adjacent to the Knollwoed ¥fllas w~ a total taxable properly vslue, mcludmg business personal property, m excess of $63 m~lh°n A development of th!~ ~ could add more than $25 m~lhon m economic act~/ the CW of Denton, suppott over 500 ?obs, and boos~ local income by $? m~lhon per year More thn $1 m~lhon per year in c~y property and sales taxes would be generated while the D~nton Independent School D~strtct would enjoy $1 4 m31hon m new dlrec~ and mdlre~ tax revenues and Denton County would gain an edd~uonal $!70,000 per year Obviously, if the propzr~y w~e developed m a different mix, the economic and fiscal im?ac~s could be substontlally different However, under any reasonable development scenario, the ancillary comm~rclal development that will hkely attend the development of the Knollwood V'fllas will boos~ the local economy and add conmderably to the,coffers of local taxing entitles Population and employment are 8rowing rapidly m the City of Denton But a serious lack of housing options for middle-raceme households persists Southwest Housing Development has proposed building a 264-rout apa~iment comm~mu'y on the south side of McKmnoy Street, about ~ xmle west of Loop 288, that can help alleviate this shortage The Delltoll plsnnm~ alld Zoning CommIssIon has already approved the prole~t In ad~htton to provldm$ much-needed housm~, Knollwood V~las will benefit the Denton economy thron~h the infusion of new spendm8 and the generation of new tax receipts for the city, coonty and school dismct What's more, the edd~lon of households on the east side of Denton should stimulate new c~ommerclal development on adlacent parcels that will further boost local employment, raceme and tax revenue Summary Table Economic and Fiscal Impacts of the Kno~lwood Villas Housing Devdopment and Potential Ancillary Commercial Development C~ty of Denton and Related Taxing Jurisdictions C_m,,~?-~:-.. :. "'-Z $ 1971257000 T~d =-~--: .... $ 7?293?000 Total ~i - ' ~'~-~---~-: (FFE) 202 ~__ _-~_~, Total e--~-~..'~ Total ~--t~ $ 793?000 3O !~it~ of D.'-,~-.--~ Tax te~---.=~-~,~ ~ & t-,~) $ 1237000 $ 50?000 D-=-'---~ ISD Tax Rev-_---_-~:-_--~ $ 40~000 Total ~= ~-'~ ~-.ity $ 25?486?000 Total~i~ $ 770~0~000 550 To~l ~=o~~---~ (FrE) City of~--~'-.-~ Tax 1~-.-_----'-----~.~-~ & ~) $ 170907000 $ 1777000 L~_~-~.~ lfiD Tax P~v~'-.~-_~.~ $ 1,408,000 Som~ Authufl'es~natet * A~ummon~4hnd~ 0 Knollwood %ttc Plan ~ 0 t utmc Collectm %liter McKinnoy Street Baptist Church 3000 East McKtnney Street Post Office Box 961 Denton, Texas 76202 (940)387-3650 (940)382-1774 fax March 12, 2001 Mr Perry MeNaell, Planmng and Zomng Chaar and Comm~ssloners Ms Eulene Brock, Mayor and Caty Council Members City of Denton 221 N Elm St Denton, Texas 76205 Dear Planmng and Zomng Comrmttee and Mayor, I want to east my support for the continued development of our eommunaty It has come to my attentton that Southwest Homing Development as an pursmt ofrezomng and permattmg to build affordable housing for famthes an our area I am convinced there as a real need for such a faeflaty m our eommumty The demand for affordable housing for farmhes as ewdent m our eommumty The envaronment prowded by Southwest Housing should just fill that need The fact that they continue to manage the famhty after eonstruetmn loves me security about the upkeep and continued enhancement of the commumty Please consxder and grant their request to bmld Knoll Wood Villas housing commumty just down the street from our church S~ncerely, Ball Black Pastor of McK~rmey Street Baptast Church Singing Oaks Church of Christ March 14, 2001 Mr Perry McNlell, Planning and Zoning Chair and Commissioners Ms Eulene Brock, Mayor and City Council Members City of Denton 221 N Elm St Denton, Texas 76205 It has come to our attention that a request has been made to build a senior housing facility at 1551 Mmgo Road We would like to offer our support of this project Our experience indicates that the housang needs of senior cmzens ltl our commumty are not beang met In additaon, tt is clear that with our aging population the demand for quahty affordable housing and related services is only goang to anc~ ease We have met wath Southwest Housing Development and have received information on their facllataes and the seavices offered to thear resadents We beheve this combination of housing and servaces prowdes a quahty hfestyle for semors tn our commumty The environment provaded by Southwest Housang as secure, comfortable and attractave Representatives from our church attended a recent neighborhood meeting and we heard the concerns 0f neaghbors of the proposed Mmgo Road project We beheve Southwest Housang responded'to these concerns by anaktng needed changes and continues to show a "good neighbor" response lWe would urge you to support Southwest Housang's request to provide much needed housang and serrates for our semor cttazens Smcerely, For the El~ters 101 Cardinal Drive · Denton, Texas 76209 · (940) 387-4355 · Fax (940) 382-9596 · E-Marl socc@lglobal net APR -27'01(PRI) 12 47 HAYES, COPPEY,&BERRY, P C TEL 940 $65 0359 P 002 A'{~'ORN]~V~{ AT LAW R~{la~ p, { I~S D~nfnn~ ~o~s M, MOMmy FaScia ~ A4,~ ~mg~l~d~l~ts~R~l~a~Le~ *, ~mf~ ~w Tale~a ~) ~171 John White A~I ~7, 200X ~ Dnvo HiU ~ ~A ~AC~ .E D~~ T~ 752~1 D=~ Mr. ~11: ~ you ~r ~ ~ fim~ W ~ ~th me ~s mo~ ~ ~ pwp~sed a~ of ~e Mns~ Br~h ~o~ pmp~ o~ed by my ch~n~ ~ ~ Mm~ d~sc~s~d. I have b~n a~honz~ to c~vmy ~ Ma~ o.'s o~ ~ a~ ~t ~ us~ or ~low pmp~ to bo ~ ~ m ~p~t b~ plant. ~s off~ ts co~t~ona{ upon ~c $~t not ~ ~n~ ~ ~o~'s ~p~ ~ would be ~c~ted ~ ~ f~ ~t m Lmu of ~{on, l ~vo r~mwed ~o copy of ~ r~c~ve ~v~t p~o~]y ~md by ~o C~W ofD~ton ~ will convey to Mr M~o~ ~e ad~tmn~ co~dt~on t~t ~e o~ of ~ ~op~ m~ ~ fll~i for plat ~mval ~gl such ttme ~ the ~ ~stand ~ ~s a~ of ~nc~ ro~m~ tho ~m~ of u ba~S p]~t ~a$ pl~t s~ed as the ~p~ ~ ~ ~a~on ~coedin~ c~ntly ~aY Mr. M~ott ob~d apo~i~ ~m the Go~ au~uH~i hm ~ ~m~t ~ ~h~t plant on ~s prepay b~ in 1998 ~d ~ fl{ed a oomplmt~ ~pl~ahon ~r appmv~ ~m ~= ho would ]t~ ~ avmd ~aaon ~ m ~ ~ ~ m~ ~ a~um~t to ~mp~h ~t ob~ ~Ve p{e~e be ~d that ~e pl~ for ~ ~ph~t b~S p]~t ~ve be~ ab~doned, S ~ FTAR.~LAW_~A~T~It[ clfl~vJ AT'4~T Cl'[~tf I~ Dmvo Htil,dno APR -27'01(FRl} 12,47 HAYES, COPFEY,& BERRY, P G TEL 940 565 0359__ P 003 We look forward ~o workm8 wlih the C~ty and hope that we are able to reach a mutually beneficial a~roemon~ Please call me zf you have any questions or concerns Very truly yours. HAY'F.8{, COFFE¥ & BEitI~Y, I'.C. l~atnc~ A, Admum PAA/bt c BdSnyd~r, City of D~n~on ii ~SHARI~AW.'W'F~mU'{g{O.qddA+q,R{OT1A{~' m D,vo Ht{l don AGENDA ^0ondaNo 0 [- 0~{P , ' CITY OF DENTON CITY COUNCIL ~l]e"da It°m~'~'0 I~t ! May 8, 2001 f)ate _ After determanmg that a quorum Is present, the City of Denton City Council will convene an a Regular Meetang on Tuesday, May 8, 2001 at 6 00 p m m the Council Chambers at City Hall, 215 E McK]rmey Street, Denton, Texas at which the following atems will be considered 1 Pledge of Allegmnce A U S Flag B Texas Flag "Honor the Texas Flag - I pledge allegaance to thee, Texas, one and ]nd]vas]ble" 2 Consider adoption of an ordinance canvassing the returns and declaring the results of the regular mume]pal electron held in the City of Denton Texas, on May 5, 2001, and providing an effective date 3 Cons]der approval of a Resolution of Apprecmt]on for Council Member Carl Young 4 Oath of Office administered to newly elected Council Members 5 Elect]on of Mayor Pro Tem Following completion of the regular meeting, the Council will convene in the Work Session Room to attend a reception hononng Council Member Carl Young CERTIFICATE I certify that the above notice of. ~e~et]ng was post_ed on the bulletin board at the City Hall of the (~p~m fDenton, Texas, onthe ,t/c-Ur& dayof "~/LO~ .2001 at .5'OC)o'clock(am) NOTE THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE AgendaNo Agenda ORDINANCE NO AN ORDINANCE CANVASSING THE RETURNS AND DECLARING THE RESULTS OF THE REGULAR MUNICIPAL ELECTION TO ELECT FOUR CITY COUNCILMEMBERS HELD IN THE CITY OF DENTON ON MAY 5, 2001, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAiNS SECTION 1 The C~ty Cotmml finds and declares that the May 5, 2001 regular mumc~pal elect~on was duly ordered for the purpose of electing four counctlmembers to Places 1, 2, 3, and 4, that proper not~ce of smd elect~on was duly g~ven and electron officmls appointed, that the elect~on was duly held and the returns of the elect~on offimals have been dehvered to the Councd, all ~n accordance w~th the laws of the State of Texas and the Charter and ordinances of the C~ty of Denton SECTION 2 The official returns of the electron officials hawng been opened, examined, and canvassed, and the Cotmml hereby finds and declares that ballots were cast at the elect~on, and that the votes cast for each place on the Cotmcd were as follows EARLY VOTING FOR PLACE 1 Wflhe Hudspeth Raymond Redmon Larry B Sasser FOR PLACE 2 Jane L Fulton Ned L Durrance FOR PLACE 3 M~ke Cochran Mmhaal Ph~lhps FOR PLACE 4 Perry McNedl Sandy Knstoferson ELECTION DAY VOTING FOR PLACE 1 Wflhe Hudspeth Raymond Redmon Larry B Sasser FOR PLACE 2 Jane L Fulton Nell L Durrance FOR PLACE 3 M~ke Cochran Mmhael Phflhps FOR PLACE 4 Perry McNe,ll Sandy Knstoferson TOTAL ¥OTES CAST FOR PLACE 1 Wflhe Hudspeth Raymond Redmon Larry B Sasser FOR PLACE 2 Jane L Fulton Nell L Durrance FOR PLACE 3 Mike Cochran Michael Phflhps FOR PLACE 4 Perry McNefll Sandy Knstoferson SECTION 3 The Councd finds and declares that each candidate hsted below received a majority of the votes cast for each place on the Councd and that each candidate hsted below ~s hereby declared to be elected to the C~ty Councd of the C~ty of Denton FOR PLACE 1 FOR PLACE 2 FOR PLACE 3 FOR PLACE 4 and the candidates shall assume the duties of their office on the date that they take the offimal oath of office SECTION 4 That the C~ty Counml has found and determined that the meeting at which this ordinance ~s considered ts open to the public and that notme thereof was g~ven ~n accordance w~th provisions of the Texas open meetings law, Tex Gov't Code ch 551, as amended, and that a quorum of the C~ty Councd was present SCT~ That th~s ordtnance shall become effective ~mmed~ately upon its passage and approval PASSED AND APPROVED this the day of ,2001 EUL1NE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY