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2026-004 Craver Ranch Municipal Management District October 17,2025 Report No. 2025-004 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Craver Ranch Municipal Management District EXECUTIVE SUMMARY: City Council will have a work session on the Craver Ranch Development on October 21, 2025. Staff and the Developer will be presenting information on the development, the related infrastructure,and the key points of the project and operating agreements. Staff is seeking feedback from the City Council on these items. Presentations to Planning and Zoning are scheduled for October 22, 2025, and in November, then coming back to City Council for consideration of the zoning and related agreements on December 2, 2025. BACKGROUND: Craver Ranch is an approximately 2,870-acre property in North Denton situated between FM 2153 to the east and north, FM 2164 to the west, and Shepard Road and Gribble Springs Road to the south. The majority of the property was annexed into the City in 2008 and 2009 and has remained undeveloped since that time. Following annexation, the placeholder zoning designation of Rural Residential (RD-5X) was applied under the City's 2002 Denton Development Code (DDC), and this transitioned to Rural Residential (RR) zoning with the adoption of the 2019 DDC. The City received notice of intent to introduce legislation for the creation of the Craver Ranch Municipal Management District (MMD) No. 1 (the "District") on February 6, 2025 which the developer, Old Prosper Partners Acquisitions,LLC, intended to develop 2,500-acres of the overall site with the intended mixture of uses, which includes single-family dwellings, multi-family dwellings, townhomes, commercial/retail uses, school sites, and a variety of open spaces. On March 4, 2025, the City Council adopted a resolution supporting legislation related to the creation of the District, which was approved through a special act by the 891h Legislature of the State of Texas. Part of the requirement of the City Council resolution was that the Developer had to negotiate and enter into a development agreement with the City for the property. Staff and the Developer have been working through studies and negotiations regarding the development agreements since that time, and plan to present this information to the City Council at a work session on October 21, 2025, and introduce the project to the Planning and Zoning Commission on October 22, 2025. DISCUSSION: In general, the development agreement being proposed follows the structure of the Hunter and Cole Ranch agreements,except for the MMD,rather than assessing a separate tax,receives funding through the use of a special assessment. Zoning October 17,2025 Report No. 2025-004 In addition to the development agreements, Craver Ranch has submitted and been working with City Staff on a Planned Development(PD)District zoning request.Along with the PD application, Craver Ranch has also submitted a request for a Comprehensive Plan and a Mobility Plan amendment, which are all expected to be brought forward concurrently for public hearings. The PD is intended to establish the locations and boundaries of sub-districts for residential and nonresidential development, detail the permitted uses and establish maximum number of dwelling units within each subdistrict, and establish the minimum standards for open space and parkland within the overall Craver Ranch development. Predominantly, the Craver Ranch development will follow Denton Development Code standards. However, the PD does propose the following deviations or enhancements: • Add standards for the development of zero-lot-line homes, • Establish a lot size mix for residential uses that includes the maximum number of each lot size allowed and specific dimensional standards for each lot size, • Establish increased landscape, fencing, and building design standards for residential uses, and • Provide unique roadway cross-sections for streets within the development. Staff are in favor of these changes and plan to recommend approval when bringing the zoning case forward to Planning and Zoning Commission and City Council because the changes allow for a variety of different housing types, and the standards being put in place will ensure a higher quality of development than required by typical City of Denton standards. Utilities The property will be served by City of Denton Water, Wastewater, and Solid Waste. The electric utility provider for the property is Oncor. The Developer will be constructing the public infrastructure (Water, Wastewater, Streets, and Drainage) within the project according to City of Denton standards. At the completion of the construction, the City will inspect and accept the public improvement, similar to our standard process. The City will be committing to building off-site infrastructure to serve the project, which include the Clear Creek Interceptor and a water transmission main from the Lake Ray Roberts Treatment Facility. The Developer will construct the necessary improvements to connect to this infrastructure in phases and in coordination with their development. They will also be required to fund and construct an elevated storage tank on the property and will be providing easements on the property for the water transmission line. Roadways October 17,2025 Report No. 2025-004 The Developer will be constructing and conveying to the City all the roadways within the development. The City will assume maintenance of those roadways; however, unlike other developments, the District will be maintaining all of the landscaping within those rights-of-way. The Developer has commissioned a traffic study as part of the process of drafting the agreement, which demonstrates the adjacent TxDOT roadway's (FM2153 and FM2164) ability to accommodate the additional trips from the development. Additionally, the Developer has committed to making improvements to the Denton County-owned Shepard and Gribble Springs Roads adjacent to their property to get traffic to those TxDOT roadways. The future Outer Loop is also planned to be constructed by TxDOT in the future to the south of the property,which would support the majority of the traffic from the development. City Council will be considering a Mobility Plan Amendment with this project to accommodate changes related to the development's east-west arterial. The way in which the current mobility plan was adopted, this roadway was displayed going through a large floodway, which would require an approximately 2,800-foot bridge crossing. The proposed alignment would require a less than 1,000-foot crossing, but because this alignment was more than 1,000 feet deviation from the current mobility plan, it requires an amendment. The traffic study supports the development's ability to use this alignment. Parks The Developer has created a Parks Concept that includes a 358-acre central park area, which will have park amenities and a trail system throughout the area, connecting to more open space within the property. There would be an additional 8-acre City Park, a 2.5-acre trail head, three neighborhood parks, and pocket parks throughout the development. In total, the developer is proposing 13.5 miles of trail systems and to, between all park amenities, meet the City's 10-minute walk goals. All these amenities will be constructed by the developer and maintained by the MMD with no obligations by the City. Agreements City Council is familiar with the structure of the proposed agreements, with the City having a project agreement with the Developer for the construction of the development and an operating agreement with the District for future maintenance and operation. The Project Agreement establishes the responsibilities for designing, constructing, and financing public infrastructure and park improvements within the Craver Ranch development. It outlines how the developer will advance funds for these improvements,with reimbursement through assessments and bonds issued by the District. The agreement sets standards for land use, zoning compliance, and phased dedication of parks and municipal facilities.It includes provisions for maintenance responsibilities, cost-sharing for oversized infrastructure, and coordination with the City on offsite improvements. October 17, 2025 Report No. 2025-004 The agreement is structured to align with the Operating Agreement and ensures that all improvements meet City standards before being conveyed. The Operating Agreement outlines how public infrastructure such as water, wastewater, roads, drainage, and parks will be financed, constructed, and maintained within the Craver Ranch development area. It establishes a framework for the District to issue bonds and levy assessments to reimburse developers for infrastructure costs. The agreement includes detailed procedures for project approval, financial reporting, and compliance with city standards. It allows for the division of the District into smaller entities and sets conditions for their participation. The agreement also defines how and when improvements are conveyed to the City and under what terms the District may be dissolved. Benefits The Developer intends to meet the City of Denton codes and criteria similar to other developments within the City of Denton. In addition to that,they are providing the following additional benefits: • Providing a total of 380.5 acres of parks, which is approximately 320 acres above what is required by the parkland dedication requirements, • Maintenance of all park space and right-of-way landscaping, • $7.5 million in capital funding for emergency services, a public works facility, and affordable housing, • 6 acres provided for fire stations and additional easements for a future large transmission water line from the water treatment plant, and • Based on the initial results of the fiscal impact study, the City will receive a net positive benefit from the development of$38 million over a 40-year period. With expected revenue of$1.16 billion and $1.12 billion in expenditures. CONCLUSION: The Craver Ranch development represents a significant opportunity to guide high-quality,master- planned growth in North Denton. The proposed agreements and zoning framework ensure that infrastructure, parks, and public services are delivered in a coordinated and fiscally responsible manner, with substantial contributions from the developer beyond standard requirements. Staff recommends moving forward with the zoning and agreement approvals, as the project aligns with City goals for housing diversity, infrastructure planning, and long-term financial sustainability. Feedback from City Council during the upcoming work session will allow for input on the details before formal consideration by City Council of the agreements, zoning, comprehensive, and mobility plan amendments on December 2, 2025. STAFF CONTACT: Charlie Rosendahl October 17,2025 Report No. 2025-004 Interim Director of Development Services Charlie.Rosendahl@cityofdenton.com (940) 349-8452 REQUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 4 hours