2019-101 Pre-Annexation AgreementsDate: May 10, 2019 Report No. 2019-101
INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Pre-Annexation Development Agreements EXECUTIVE SUMMARY:
Development Services staff has received multiple inquiries regarding pre-annexation development agreements in recent months. One such agreement is in the process of being formally submitted at this time. Prior to this, the Creekside development off of Ryan Road has been the only pre-annexation development agreement processed and approved by the City Council. Staff encourages the use of these agreements in the future, and is working to formalize a process for handling these
as they are proposed. As part of that process, Staff is seeking direction from Council on whether these agreements should be presented only to City Council in the future or whether the agreements should first go to the Planning and Zoning Commission for review and recommendation. BACKGROUND:
In 2017, Senate Bill 6 was approved and went into effect. This bill makes involuntary annexation difficult for cities, but did not alter a city’s ability to enter into pre-annexation development agreements. Texas Local Government Code (TLGC) Section §212.172 gives cities authority to enter into
development agreements with property owners whose land is located in the city’s extraterritorial jurisdiction (ETJ). TLGC §212.172 allows the City to enter into development agreements for ETJ properties in order to: 1. Guarantee a property will not be annexed; 2. Extend the City’s planning authority for a development plan;
3. Authorize enforcement of land use and development regulations that apply in the City; 4. Authorize enforcement of land use and development regulations other than those that apply within the City; 5. Provide for infrastructure for the land; 6. Authorize enforcement of environmental regulations;
7. Provide for annexation of the land as a whole or in parts and to provide for terms for the annexation; 8. Specify the uses and development of the land before and after annexation; or 9. Include other lawful terms and considerations the parties consider appropriate.
Denton has often entered into non-annexation agreements with property owners under this authority, and has entered into one pre-annexation development agreement in recent years. In the past few months, Development Services staff has received multiple inquiries from parties interested in pursuing pre-annexation development agreements. One of these agreements is in the process of being formally submitted for review and consideration by the City Council.
Prior to this, the only pre-annexation development agreement that has been processed and approved was for the Creekside development off of Ryan Road (reference ordinance 2016-251).
Date: May 10, 2019 Report No. 2019-101
The Creekside agreement included development standards for three distinct tracts: an approximately 140 lot single-family subdivision, a three-lot residential development located along the creek itself, and an additional phase of a nearby assisted living facility. Additionally, the
agreement outlined the platting, annexation, and zoning processes for each tract of the development and specified what public improvement and impact fees would be assessed for each tract. The agreement allowed the City to ensure the future developments who meet and exceed the City’s standards for residential development, require the plugging of an existing gas well, and provide for the preservation of Environmentally Sensitive Areas that are not normally protected in
the ETJ, while the developer was able to have assurance that their desired zoning would be approved upon annexation into the City. DISCUSSION:
The City has limited authority to enforce its development regulations in the ETJ that includes platting and floodplain regulations. The City has no authority over land uses or development standards, and thus cannot ensure that developments in the ETJ are compatible and cohesive with adjacent development inside the City limits. Pre-annexation development agreements such as the one adopted for Creekside offer the City a valuable tool to secure comprehensively planned high-
quality developments on the periphery of the City, with possible benefits including:
• Cohesive Character - Development standards similar to those often seen in Planned Developments (PDs) can be applied in order to define the space and create a sense of place. Standards include, but are not limited to, architectural details, building materials, landscape design, and tree canopy.
• Connectivity – The developments could be required to provide pedestrian, bicycle, and vehicular paths within a community and joining adjacent communities and transportation networks.
• Sustainability – The City’s standards for ESA and tree preservation can be applies in order
to protect the area’s resources for future generations.
• Open Space – Requirements for open space can be applied, including active and passive recreation areas for the entire community.
• Durability - By applying the City’s standards or heightened standards to periphery developments, unique, desirable neighborhood long-lasting legacies for the City of Denton can be created.
Staff has seen consistent development pressures within the City of Denton’s extraterritorial
jurisdiction (ETJ), and based upon recent proposals for development in the ETJ staff has determined that pre-annexation development agreements may be merited on a more frequent basis. Therefore, a policy for handling these requests should be established to provide consistent timelines and processes for these proposals as they occur.
The Creekside pre-annexation agreement was reviewed by staff and presented directly to City Council for consideration. This process is consistent with the TLGC requirement for the City’s governing body to approve this type of agreement. However, because the agreement included requirements for platting and assured zoning designations for the tracts upon annexation, it would have been reasonable and consistent with other City process to first pursue a recommendation on
Date: May 10, 2019 Report No. 2019-101
the agreement from the Planning and Zoning Commission since they would be required to approve and make recommendations on those future actions.
Pre-annexation agreements provide an opportunity for staff to analyze the impacts of development within that would not otherwise be reviewed within the City’s ETJ and to determine what system improvements are needed to roadways, utilities, etc. to support the development. For example, the agreement for Creekside specified precisely what road improvements were needed, what utility connections would be made, and what impact fees would be assessed for the development. Staff
proposes to use this agreement as a starting point in crafting future pre-annexation agreements to ensure consistency in the process. For future pre-annexation agreements, staff proposes the following process:
• Staff review and recommendation
• Planning and Zoning Commission review and recommendation as an item for Individual Consideration
• City Council review and decision as an item for Individual Consideration
Once a pre-annexation agreement is adopted, the order of development projects would be:
• Platting
• Annexation
• Zoning
• Permitting
CONCLUSION: It is likely that the City will see more applications for pre-annexation development agreements in the coming months, and a policy for how to process these requests is needed.
It is staff’s recommendation that future pre-annexation development agreements be reviewed by
staff, taken to the Planning and Zoning Commission for a recommendation, and then taken City Council for a final decision. This process flow is consistent with the zoning or specific use permit process; however, pre-annexation agreements do not require a public hearing. However, if the Council is interested, staff can bring forward a policy discussion to determine how future pre-
annexation development agreement should be processed. STAFF CONTACT: Richard Cannone, AICP
Deputy Director/Planning Director
Richard.Cannone@cityofdenton.com (940)349-8507