PRESENTER: Presenter
Christopher J. Looney, AICP, Director of Neighborhood and Community Planning
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SUBJECT: Title
Approval of the first reading of an ordinance, in accordance with the requirements in adopted agreements with the property owner, to annex for limited purposes Lots 1 and 2, Block 1, Veramendi Precinct 9, Unit 1 Subdivision, consisting of approximately 10 acres.
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DEPARTMENT: Neighborhood and Community Planning
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COUNCIL DISTRICTS IMPACTED: 3
BACKGROUND INFORMATION:
Case No. CS26-0366
Petitioner: Comal County Water Improvement District No. 1 (Veramendi)
c/o Coats Rose Yale Ryman & Lee
Timothy Green
3 East Greenway Plaza, Suite 2000
Houston, TX 77046
Owner: Veramendi PE-Hobart, LLC
Peter James
P.O. Box 310699
New Braunfels, TX 78131
Staff Contact: Matt Greene
(830) 221-4053 | mgreene@newbraunfels.gov
As part of the Veramendi Development Agreement adopted in 2013, the City of New Braunfels and Comal County Water Improvement District No. 1 negotiated a Strategic Partnership Agreement (SPA), in accordance with state statute, for limited purpose annexation of certain properties within Veramendi. Under this agreement, when properties designated in a Sector Plan for commercial or mixed commercial and residential use are platted, they are required to be annexed into the City for the limited purpose of sales tax collection. These areas will not be subject to City property taxes, and therefore the City will provide only the limited municipal services as outlined in Article VI of the SPA.
Per Chapter 43 of the Texas Local Government Code, one of the ways that limited purpose annexation differs from full purpose annexation is that residents or owners of property within areas annexed for limited purposes may vote in City Council elections and on City Charter amendments; however, they are not eligible to participate in City bond elections since they do not pay city property taxes.
ISSUE:
The subject lots are designated for commercial use under the approved Veramendi Sector Plan 2. The recording of the plat containing these lots has triggered limited purpose annexation in accordance with the above-mentioned SPA (see resource link below). City Council held two public hearings on September 10, 2012, and October 22, 2012, to consider the SPA and the limited purpose annexations. During these hearings, members of the public were provided the opportunity to present testimony or evidence, consistent with the procedural requirements of the Texas Local Government Code. No further public notice or public hearings are required per state statute. This action aligns and is consistent with limited purpose annexations of portions of Veramendi already conducted under the SPA.
COMPREHENSIVE PLAN REFERENCE:
Regional Planning: Annexation
• Balance resources in an equitable manner that does not lead to disinvestment in existing New Braunfels.
• Ensure annexation supports the community’s desired form, design and pattern.
• Assure the long-term fiscal health of New Braunfels and that policy decisions do not create an undue fiscal burden on the City or others.
Future Land Use Plan: The subject property is located within the Veramendi Sub Area, along a Transitional Mixed-Use Corridor, within existing Education and Civic Centers, and near a future Market Center.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☐Community Well-Being ☐N/A
• Objective: Considering statutory and market-based factors, continue to diversify revenue streams to support long-term fiscal sustainability of the organization.
FISCAL IMPACT:
Under the adopted SPA, the subject tract must be annexed for limited purposes, enabling the City to collect sales tax revenues while providing only the limited municipal services specified in the agreement. After execution of the SPA, ESD No. 7 implemented a sales tax within the area, preventing the City from collecting those revenues directly as originally contemplated. To preserve the parties' intent, the City and ESD No. 7 entered into an ILA under which ESD No. 7 collects the sales tax generated within the limited-purpose annexation area and remits the applicable revenues to the City for distribution pursuant to the SPA.
Recommendation
RECOMMENDATION:
Approval. The agreement already adopted by Veramendi and City Council requires the property to be annexed for limited purposes.
RESOURCE LINKS:
• City Veramendi Webpage: <https://www.newbraunfels.gov/1385/Veramendi>
• Veramendi Strategic Partnership Agreement: https://www.newbraunfels.gov/1385/Veramendi#docaccess-cae312402269677eeaf7fa7720b763e2 <https://www.newbraunfels.gov/1385/Veramendi>