Agenda

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21.

City Council Regular Meeting

Meeting Date:

10/27/2020

BACKGROUND

The City of Schertz was approached by the owner of property in the City of Schertz, generally in the vicinity of Lookout Road and Doerr Lane, about requesting the release of 141 acres of adjacent property they own, that is in the City of San Antonio's extraterritorial jurisdiction (ETJ). The property in question has very limited access as it is bounded by railroad tracks on the north and south sides as well as the Cibolo Creek to the west. It is at the end of Tejas Way, a City of Schertz public street that connects to Doerr Lane. As future development may cross the boundary between City of Schertz and City of San Antonio ETJ, the owner felt the entire property being in the City of Schertz would make development easier.

Given the challenges in annexing land in Texas, without the property owner's consent, City of Schertz staff had concerns of how the property might develop without zoning controls. Additionally, given that primary access will be through the City of Schertz, staff had concerns about the impact of development on our community that does not have to abide by the City's development regulations. With a commitment from the property owner to request voluntary annexation to the City of Schertz, if the City of San Antonio agreed to release the property from the City of San Antonio, City of Schertz staff approached City of San Antonio staff.

Staff from both communities have been in discussions for some time about the mutual benefits of an Interlocal Agreement (ILA) to provide for the release of the property from San Antonio's ETJ so that it can be annexed by Schertz. Discussions were delayed by the COVID pandemic, but staff of both cities have reached agreement for terms of an ILA that are mutually beneficial and really serves as a model of how communities can work together for the good of everyone. Having a similar ILA from 2010, which allowed the City of Schertz to annex a large portion of what is now southern Schertz provided an example of benefits to both communities from these types of agreements. Working together in the areas of public safety and land use planning around JBSA Randolph to support the mission of the base, seems to set a tone for what the citizens of both communities expect.

The agreement provides that Scherz will seek to annex the land in a timely manner upon release from San Antonio's ETJ. San Antonio City Council is expected to consider the ILA in early December. Staff has already begun mapping out the notice and public hearing process to accomplish the annexation in late February or early March of 2021. Schertz agrees to zone the property in conformance with its Comprehensive Plan - this would be an extension of the land use designations of "Industrial" and "Industrial, Technology and R and D" which generally support zoning to the M-1 or M-2 districts.

The City of Schertz agrees to remit to the City of San Antonio 50% of sales, use, ad valorem taxes and franchise fees for the transferred property for a period of 30 years after annexation. Certainly both cities are focused on providing high levels of services to their residents and businesses. Accordingly, both cities plan for growth and development with that in mind, understanding the role a city's tax base plays in being able to do this. In this case, the property has significant potential to develop with commercial and industrial uses and bring tax revenue to a City - if the land is annexed into a City - which would be of positive benefit. If the property remains in the ETJ, no city taxes would be collected - sales or property. But annexation is not always possible or easy under State law without property owner support. As it stands now, the property is in neither the City of Schertz nor the City of San Antonio. As it is in the City of San Antonio's ETJ, Schertz is not able to annex it. Additionally, there is a cost to provide services - to send fire, EMS, and police to respond to emergencies or have a presence. As Schertz understands, from having such an unusually shaped city - a backward Z - lack of easy access to all parts of a city creates challenges and costs. Something San Antonio would likely experience in this case.

By agreeing to share the revenues for 30 years, both cities benefit instead of both cities losing out.

GOAL

Provide for the annexation of property at the request of the property owner that is presently in the ETJ of the City of Schertz in order to provide for the orderly development of the property in a way that is compatible with the adjacent land uses and in conformance with the City of Schertz Comprehensive Plan.

COMMUNITY BENEFIT

Provides for the continued orderly development of the area around Schertz and San Antonio that supports compatible development.

SUMMARY OF RECOMMENDED ACTION

Approval of the resolution to authorize the City Manager to enter into an ILA with the City of San Antonio providing for the release and acceptance of ETJ generally as per the terms of the attached ILA. Staff is waiting to hear if the City of San Antonio has any revisions to the draft agreement. Minor changes can be approved by the City Manager and City Attorney, but substantive changes would require approval by City Council.

FISCAL IMPACT

The agreement provides that the City Annex the property - which requires the City to provide services such as Fire and Police service as well as maintenance of public infrastructure. Per the agreement the City would pay half of the fees and taxes collected by the City, as outlined in the agreement to San Antonio for a period of 30 years. After 30 years the City would retain all the taxes and fees paid to the City. As it stands presently, with the property in the ETJ, the City of Schertz would not receive any tax benefits from the property.

RECOMMENDATION

Approval of Resolution 20-R-83.

Attachments
Res 20 R 83 COSA ETJ Release
COSA ILA ETJ Release