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  2.       
City Council Regular Meeting
Meeting Date: 02/09/2021  

BACKGROUND
In 2010 and 2011 the City of Schertz entered into Delayed Annexation Development Agreements with property owners 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, 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.

There were four groups of Delayed Annexation Development Agreements, outlined below: 
Agreement Executed Agreement Expiration Current Status
July 2010 July 2020 City Council Approved Resolution 20-R-116 on October 27, 2020 authorizing the City Manager to sign and execute extension agreements with 23 property owners. These 23 agreements have been recorded with their respective counties and mailed back to the property owners. 
November 2010 November 2020 Resolution 21-R-11 will allow the City Manager to sign and execute extensions for 25 properties. These 25 extensions have already been signed by the property owners. 
April 2011 April 2021 Resolution 21-R-11 will allow the City Manager to sign and execute extensions for 2 properties. These 2 extension have already been signed by the property owners. 
August 2011 August  2021 Resolution 21-R-11 will allow the City Manager to sign and execute extensions for potentially 82 properties. At this time Planning staff is in the process of communicating the potential extensions to the property owners within this group. At this time we do not have signed extensions, which is why there is a potential for 82 properties, but that number may be reduced based on owners decision. 

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 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.

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 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 in which the property owners choose to extend with Development Agreements originally signed in November 2010, April 2011 and August 2011. 
 
GOAL
To authorize the City Manager to sign and execute Development Agreement Extensions for all properties in which the property owners choose to extend with Development Agreements originally signed in November 2010, April 2011 and August 2011. 
COMMUNITY BENEFIT
Offering Development Agreement Extensions not only delays the annexation of these properties, but 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 also 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. 21-R-11 authorizing the City Manager to sign and execute Development Agreement Extensions in relation to Development Agreements entered into November of 2010, April of 2011, and August of 2011. 
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. 21-R-11 authorizing the City Manager to sign and execute Development Agreement Extensions in relation to Development Agreements entered into November of 2010, April of 2011, and August of 2011. 
Attachments
Resolution 21-R-11 and Exhibit A List of Properties
Res 21-R-11- Exhibit B Maps
Exhibit C

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