Council to consider proposed Pecan Woods Development Agreement, PID

After months of what I’ve heard were intense negotiations, the City is scheduled to vote Wednesday on whether to approve a development agreement with the Walton Group, a multinational privately owned real estate investment and development group, on the development of 763 acres known as Pecan Woods, most of it southeast of the city limits along Ranch Road 150, and to create a $60 million PID for the project.

The boundaries of the proposed development are approximately Heidenreich Road, Ranch Road 150, Grist Mill Road and an imaginary line extending from Simon Middle School on RR 150 over to Grist Mill Road.

The PID bonds, which will have a 20-year shelf life, will be repaid by levies assessed against property owners within Pecan Woods. The money collected from the sale of the bonds will be used for streets and sidewalks; water and wastewater facilities; drainage facilities; landscaping and other aesthetics; and park, recreation and cultural facilities.

The bonds are scheduled to be issued in three phrases. This is important because there is one section of the proposed development, at the corner of Heidenreich and 150, that is designated for commercial development. That section will be annexed into the city but the rest of the development — the residential areas — will not only remain in Kyle’s ETJ, but cannot be considered for annexation until 20 years after the issuance of the bonds used to finance them. The first bonds are scheduled for the end of 2020, which means the city could not consider annexing Phase 1 until the end of 2040 at the earliest, at which time, I presume, a city council in place then could evaluate whether the condition of the development’s infrastructure made it an area worth annexing.

What follows are items I selected from the proposed development agreement that I found interesting:

• The owner of the property agrees to dedicate to the city (at no cost to the city) a one acre site within the project that may be used at the discretion of the city for the construction of a police station. The location of the police site shall be determined by the owner, but will be located off of Heidenreich Lane or Grist Mill Road in a location that would allow the police station to provide its intended services. If construction of the police station is not completed within eight years, instead of being used for police services, the site may be developed consistent with surrounding use.
• A minimum of 175 acres (approximately 23 percent of the entire project) of parks and open space will be dedicated to the city within Pecan Woods.
• The owner will pay the city $2 million toward expansion of the wastewater treatment plant within 30 days of: (1) the city approves construction plans associated with the final plat for the Phase One of the project, or (2i) approves a Service and Assessment Plan for the PID bonds, whichever comes last.
• "The failure or refusal of the city council or any board or commission of city to approve a proposed development permit, utility service extension, or other development approval with respect to Pecan Woods that complies with the terms of this agreement and the city code within a reasonable time after submission of a complete application shall constitute a default." The reason I highlighted this section is because, in the back of my mind, I thought it was illegal for a city council to agree to anything that could bind future city councils. So I asked the attorney general’s office about this and was told AG issued an opinion that distinguished between those actions that are legislative in nature and those that are administrative or propriety. In that opinion, the AG stated: "The hallmark of the first category is the authority of a legislative body to exercise continuing discretion in the setting of legal standards to govern behavior within the jurisdiction. If a contract impairs this "core" legislative discretion, eliminating or substantially reducing the discretion future bodies might exercise, the courts are likely to find that the contract has improperly impaired the legislative authority of future commissioners. By contrast, counties have, and greatly need, authority to enter into contracts and make administrative decisions concerning the management of public property and the day-to-day conduct of government business. A contract that facilitates public administration, and which places no significant constraint on future policy-making is likely to be upheld."
• Sets aside a minimum 10-acre area at the far southeastern corner of the project adjacent to the flood plain for a community garden. According to the terms of the Development Agreement, "The garden will be dedicated to the City of Kyle Parks Department, but will be the responsibility of the Home Owners Association (HOA) to maintain the facility. On-site parking may be provided, as well as parking on adjacent streets. Facilities may include shade structures, restrooms and picnic tables. It will offer a vibrant and open space for volunteers, students and residents to come together to plant seeds, harvest fruits, vegetables and give the residents of Pecan Woods and surrounding development the opportunity to be happy and healthy without going to the local grocery/convenience store."