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  16.       
City Council Regular Meeting
Meeting Date: 07/26/2022  

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 original agreements that were signed and executed, specifically Section 5. Term; Annexation at End of Term, stipulated that ten (10) years after the effective date of the agreement the property was to be annexed into the City of Schertz. 

There were four groups of Delayed Annexation Development Agreements, outlined below: 
Agreement Executed Original Agreement Expiration Number of Properties in Group
July 2010 July 2020 23 properties
November 2010 November 2020 28 properties
April 2011 April 2021 6 properties
August 2011 August 2021 84 properties

On October 27, 2020, the City Council approved Resolution 20-R-116, which authorized the City Manager to sign and execute Development Agreement extensions in relation to the July 2010 Development Agreements. This resolution would allow the Planning Division to work with the 23 property owners in the July 2010 group to delayed their annexation for another period, not to exceed December 31, 2024. In addition to COVID-19 which was one of the basis for the extension request, the Development Agreement Extensions would allow City staff to complete the Comprehensive Land Use Plan update, authorized with the FY20-21 budget. This would ensure that when these 23 properties are annexed and zoned in 2024 it will be in conformance with the updated Comprehensive Land Use Plan. On February 9, 2021, the City Council approved Resolution 21-R-11, which authorized the City Manager to sign and execute Development Agreement extensions in relation to the November 2010, April 2011, and August 2011 Development Agreements. The proposed extensions 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.

Since the two resolutions, Planning staff has been working with the property owners that had a Development Agreement to offer an extension or see if they would prefer to be annexed now. The following tables outline the current status broken down by each group of agreements. 
 
July 2010 Agreements: Original Expiration in July 2020 Current Status: Complete
Original number of properties in July 2010 Group 23 Properties
Number of Properties that have signed and have executed extensions 23 Properties
Number of Properties that have chosen to be annexed now and not enter into another extension 0 Properties
Number of Properties that did not respond to the information sent by Planning staff (Property owner did not respond to either extension or annexation) 0 Properties (all responded)
All property owners in the July 2010 group chose to extend their development agreements until 2024. Planning staff has successfully executed, recorded, and provided a copy to all property owners of their development agreement extensions. 
 
November 2010 Agreements: Original Expiration in November 2020 Current Status: Pending 3 Properties
Original number of properties in November 2010 Group 28 Properties
Number of Properties that have signed and have executed extensions 25 Properties
Number of Properties that have chosen to be annexed now and not enter into another extension 2 Properties
Number of Properties that did not respond to the information sent by Planning staff (Property owner did not respond to either extension or annexation) 1 Property
Planning staff has successfully executed, recorded, and provided a copy to all 25 property owners that chose development agreement extensions. The 2 properties that have chosen to be annexed now and the 1 property that Planning was unable to receive a response from the property owner will start the annexation process / be annexed by the end of the year. 
 
April 2011 Agreements: Original Expiration in April 2021 Current Status: Complete
Original number of properties in April 2011 Group 6 Properties
Number of Properties that have signed and have executed extensions 3 Properties
Number of Properties that have chosen to be annexed now and not enter into another extension 0 Properties
Number of Properties that did not respond to the information sent by Planning staff (Property owner did not respond to either extension or annexation) 0 Property
Number of Properties already annexed into the City 3 Properties as part of the Saddlebrook Ranch development 
Planning staff has successfully executed, recorded, and provided a copy to all property owners of their development agreement extensions. 
 
August 2011 Agreements: Original Expiration in August 2021 Current Status: Pending 18 Properties 
Original number of properties in August 2011 Group 84 Properties
Number of Properties that have signed and have executed extensions 64 Properties
Number of Properties that have chosen to be annexed now and not enter into another extension 4 Properties
Number of Properties that indicated they wanted an extension but did not provide a signed copy for execution 1 Property 
Number of Properties that did not respond to the information sent by Planning staff (Property owner did not respond to either extension or annexation) 14 Properties
Number of Properties already annexed into the City 1 Property as part of the Carmel Ranch Subdivision
The 4 properties that have chosen to be annexed now and the 15 properties that Planning was unable to receive a signed agreement or a response from the property owner will start the annexation process / be annexed by the end of the year. 

The following table provides the data for all agreement groups:
Current Status Number of Properties
Original Agreements 141
Signed and Executed Extensions 115
Properties to be annexed / or extensions executed 22
Properties already annexed 4

Now that CityView implementation has been completed, with the exception of advanced user training, Planning staff will begin to focus a larger effort of the completion of the development agreements / annexations. Staff is working on an annexation calendar to ensure that all required public hearing notices and state law requirements are being completed. In addition, Planning staff is generating additional correspondence to be sent to the property owners informing them of the annexation proceedings. The current goal is to have all the remaining 22 properties either annexed or have signed extensions by the end of 2022. 
Attachments
Resolution 20-R-116
Resolution 21-R-11

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