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  4.       
City Council Regular Meeting
Meeting Date: 12/01/2020  

BACKGROUND
The Live Oak Hills Subdivision is a legally platted subdivision that was filed in 1963, prior to the property being annexed by the City of Schertz in 1984. When the subdivision was platted, while in Guadalupe County, the public infrastructure improvements (streets, water and sewer) were not installed to serve the lots. This is commonly referred to as a "paper subdivision." Freeway Manor is also a "paper subdivision."

The owner of Lot 1, Block 55 and Lot 1, Block 18 of the Live Oak Hills Subdivision has requested that the Urban Lane right-of-way between their two lots be abandoned by the City of Schertz. Currently, the property owner resides at 3625 Diamond Falls within the Carolina Crossing Subdivision. This property abuts the lots in question and the section of right-of-way proposed to be abandoned. The requesting property owner, would like to utilize Lot 1, Block 55 and Lot 1, Block 18 along with the abandoned right-of-way as one large area that connects to their existing residential backyard. 

After being approached by the owner about the requesting the abandonment to increase their backyard, staff researched the situation and provided the property owner with several options in order to achieve the outcome of having a larger backyard for his family. These options included 1) the proposed right-of-way abandonment via ordinance with a requirement to replat the abandoned right-of with the Live Oak Hills Lots, 2) the proposed right-of-way abandonment via ordinance with a requirement to vacate the Live Oak Hills properties and replat with their Carolina Crossing property and a new to Schertz concept of a License Agreement that would be approved / denied by the City Council (no abandonment).

After discussing the pros and cons of each option the property owner/requestor ultimately decided to request that the City of Schertz abandon the portion of Urban Lane right-of-way that is in between their lots within the Live Oak Hills Subdivision via an abandonment ordinance without having to replat the right-of-way. 

A public hearing notice was published in the San Antonio Express News on October 21, 2020. Additionally, twenty public hearing notice mailers were sent on October 14, 2020 to the property owners within 200 feet of the property requested to be abandoned. At this time staff has received no responses in favor or opposed to this request. 
 
GOAL
The property owner of Live Oak Hills Subdivision Lot 1, Block 55 (Guadalupe County Property ID: 32206) and Live Oak Hills Subdivision Lot 18, Block 54 (Guadalupe County Property ID: 32205) has requested that the unused section of Urban Lane right-of-way between Lot 1 and Lot 18 be released by the City in order for them to utilize this section as a part of their backyard. 
The City has the goal of trying to increase the benefit of the property to the owners while not creating negative consequences of current and future owners of property and the City.
COMMUNITY BENEFIT
The abandonment and release of the ROW segment to the property owner will enable the property owner to add additional land to their lot that is currently undeveloped right-of-way. 
SUMMARY OF RECOMMENDED ACTION
The primary objection staff has in abandoning the right-of-way and not requiring a replat is that the owner can sell the abandoned right-of-way separately from the adjacent lots in Live Oak Hills. While staff does not doubt the owner's intent to not do this- rather they would sell all of the adjacent properties they own, including the lot in Carolina Crossing, there  is not a requirement that this occur. That applies to future owners as well. The only way to ensure the lots in Live Oak Hills be sold together is to require they be replatted. 

The difficulty in requiring a replat of the abandoned right-of-way into one or both of the Live Oak Hills lots, is this triggers the requirement to construct public improvements - street, water and sewer. This would likely be cost prohibitive. The owner could request a waiver to not install those as part of the replat, which is considered by the Planning and Zoning Commission. Staff would not support that waiver request. The City has significant issues with the existing "paper subdivisions" not having infrastructure - people buying those lots assuming they can be developed, when without the extension of public improvements, that cannot occur. While we have to deal with these situations that occurred prior to annexation into the City, staff cannot support adding to that problem or perpetuating it. If we were to approve this without a replat, how do we respond to future requests? Also, how does it alter the City's response to owners of property in these subdivisions that these situations were created before the properties were under the control of the City.

The requirement to vacate the portion of the Live Oaks Hills plat owned by the property owner Lot 1, Block 55 and Lot 1, Block 18 and replat that area, along with the abandoned right-of-way with the lot in Carolina Crossing would avoid the problems of not constructing the public improvements as access via an improved road and water and sewer would be via the Carolina Crossing Subdivision. The problem with this option is that per State Law, in order to vacate a portion of a plat, all of the owners of property within that plat, the Live Oak Hills Subdivision, must sign off on that action - this is something that is highly highly unlikely to be obtained by the owner. Thus, this option is not very viable. 

Staff is very supportive of a license agreement. With a license agreement, the City essentially leases this area of right-of-way to the property owner, so they can use it as a backyard. By retaining ownership, the City can end the license agreement if it needs to. Staff feels this could be a model for dealing with similar situations in Live Oak Hills and with some ordinance amendments some other challenges - limitation on fence heights allowing accessory structures, for example could be overcome. Staff will likely pursue developing a process to do this regardless of this particular situation.     
FISCAL IMPACT
The requestor would be required to pay the appraised value for the property as the City cannot make a gift of public property. The property owner has provided an appraisal indicating the property to be abandoned is worth $3,600. Normally the City would contract for the appraisal, but we could accept this appraisal.
RECOMMENDATION
Staff recommends denial of Ordinance No. 20-K-35  which does not require a replat as part of the vacation approval given the reasons outlined in the staff report. The ordinance attached is consistent with the applicants request to vacate the portion of right-of-way and not require a replat in case Council. Staff is still supportive of license agreement with the property owner.
Attachments
Ordinance No. 20-K-35
Public Hearing Notice Map
Public Hearing Notice Letter

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