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  2.       
City Council Regular Meeting
Meeting Date: 10/27/2020  

BACKGROUND
In July of 2010 the City of Schertz entered into Delayed Annexation Development Agreements with 23 properties based on Texas Local Government Code Section 43.035 (b)(1) and 212.172 in order to (i) guarantee the continuation of the extraterritorial status of the Land for the term of the agreement and (ii) authorize the enforcement of all regulations and planning authority of the City that did not interfere with the use of the land for agriculture or wildlife manage or as timber land. 

Per the agreements that were signed and executed in July of 2010, specifically Section 5. Term; Annexation at End of Term, stipulates that ten (10) years after the effective date of the agreement the property is to be annexed into the City of Schertz. This group of agreements was set to expire in July of 2020. 

The nationwide and statewide declaration of public health emergency in relation to COVID -19 impacted the city’s ability to reach out well in advance to discuss the expiration of the delayed annexation agreements and the resulting annexation of the properties under said agreements with the property owners. The annexation process can be disruptive and contentious at times, and it seemed more appropriate to not proceed forward with the annexations during the pandemic and instead offer the property owners Development Agreements Extensions. 

The Planning Division staff reached out to the property owners for the 23 properties set to expire in July of 2020 and discussed the opportunity to extend the Development Agreements and ultimately the annexation of the properties. This extension would provide the same rights as previously established in the original agreement but would delay the annexation of the properties to a later date. Specifically, the extension would be in effect until January 1, 2024, at which time the City of Schertz would begin annexation proceedings and conclude them no later than December 31, 2024.

Based on the conversations with the property owners, City staff has received signed Development Agreement Extensions for all 23 properties.  Meaning, all property owners representing the 23 properties have requested the City extend their Development Agreements until January of 2024. 

In addition to COVID-19, the Development Agreement Extensions will allow City staff to complete the Comprehensive Land Use Plan update, authorized with the FY20-21 budget. This will ensure that when these 23 properties are annexed and zoned in 2024 it will be in conformance with the updated Comprehensive Land Use Plan. 

At this time, City staff is requesting the City Council authorize the City Manager to sign and execute Development Agreement Extensions for all properties with Development Agreements signed in July of 2010. 

Additionally, for Council's information, the Planning Division has mailed Development Agreement Extension information to all property owners with agreements set to expire in November of 2020 at this time. Additionally, staff is currently working on the notification of property owners with agreements set to expire in April of 2021 and August of 2021. In the coming months City staff will bring forward an additional resolution request authorization of the City Manager to sign and execute Development Agreements with these property owners as well. 
GOAL
To authorize the City Manager to sign and execute Development Agreement Extensions in relation to Development Agreements entered into July of 2010. 
COMMUNITY BENEFIT
Offering Development Agreement Extensions not only delays the annexation of these properties, allows the focus to remain on personal safety during the ongoing pandemic, rather than on the annexation of properties, and will ultimately mean that properties would be annexed and zoned in accordance with an updated Comprehensive Land Use Plan. The delay is an immediate benefit to the property owners offered an extension, but is a long term benefit to the community to ensure that properties are zoned in accordance with the new goals, objections, and vision for the City of Schertz in accordance with an updated Comprehensive Land Use Plan. 
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of Resolution No. 20-R-116 authorizing the City Manager to sign and execute Development Agreement Extensions in relation to Development Agreements entered into July of 2010. 
FISCAL IMPACT
The development agreement extensions will need to be recorded with the respective County for each property which will be a financial impact to the City. However, this financial impact will be much less significant than annexing the properties in at this time. 
RECOMMENDATION
Staff recommends approved of Resolution No. 20-R-116 authorizing the City Manager to sign and execute Development Agreement Extensions in relation to Development Agreements entered into July of 2010. 
Attachments
Resolution 20-R-116 and Exhibit A List of Properties
Res 20-R-116- Exhibit B Map of Properties
Res 20-R-116- Exhibit C Example Extension Document

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