A seismic geographical shift

Back in the mid-1980s, when I took a break from being on the reporting side of the news business and surrendered to what some of my colleagues referred to as "the dark side" (i.e., developing communication strategies for individuals, corporations, etc., during times of crises), one of my main clients was the Frito-Lay Corporation. The company, in one form or another, had its world headquarters in Dallas when it relocated there from Kansas City in the 1930s. At this time it was located in what was known as the Stemmons Business Corridor just west of the city-owned airport, Love Field.

I was shocked, therefore, when the company decided in the mid-‘80s to relocate to a completely isolated area of Collin County, in the northern reaches of what was then Plano’s ETJ, about halfway between McKinney on the east and Lewisville on the west, towns 25 miles from each other. If you go to Frito-Lay’s headquarters today, it’s difficult to imagine it was once "a completely isolated area." Known as the Legacy Park complex, it is now well within the city limits of Plano and is the location of the world headquarters of such companies as JC Penney, Dr Pepper/Snapple, Fed-Ex, PepsiCo, JP Morgan Chase, Pizza Hut, Toyota North America, Liberty Mutual Insurance Ericsson, Rent-A-Center and Boeing Global Services, in addition to Frito-Lay.

Basically the intersection of Legacy Drive and the extended Dallas North Tollway is the center of business activity in Plano, Texas, and that intersection is located about 20 miles northwest of downtown Plano, which has become little more than an intriguing curiosity piece. (The only thing that gives downtown Plano any relevance is a DART rail station located there, around which has sprung up a mixed-use development with commercial on the ground floor and residential on floors two through five. These residences are occupied by those who, for the most park, work to the south in Richardson’s Telecom Corridor or closer to downtown Dallas.)

I was thinking about that last night — along with the fates of other suburban downtown areas — during the City Council meeting when I saw steps being taken to radically shift Kyle’s commercial/residential hub. I don’t see Kohlers Crossing becoming another Legacy Drive, nor do I see FM1626 becoming another Dallas North Tollway, but I do see Kyle’s center of gravity shifting to the intersection of those two roadways. I see Kohlers Crossing — between Jack C. Hays Trail and I-35 becoming Kyle’s commercial center and the areas that will provide the housing for the workers that will soon be coming to this area will be of two types: Multi-family along two streets, Cromwell (which will be by the end of this year if it isn’t already the most densely populated residential street in Kyle) which flanks 1626 on the west and Kyle Crossing, a perfect place for more vertical mixed-use residential developments , which, of course, is located on 1626's east flank. The single family residential areas providing homes with the easiest access to this commercial hub will be located, for the most part, in what is now Kyle’s ETJ along and just off of Windy Hill Road.

I came to this realization after the council unanimously approved without debate but with much enthusiasm an economic development agreement with Majestic Realty Company to construct a business park consisting of two buildings totaling a half-million square feet on the southwest corner of Kohlers and Kyle Crossing. (The unanimous support was pleasing to see, but what was unexpected was the report the council received which said Majestic expects to be able to begin leasing spaces in these buildings by the end of this year).

The second was a much longer presentation from City Manager Scott Sellers concerning a development agreement for a 244-acre, 1,025-lot master-planned single-family residential community called the Trails at Windy Hill, located near the intersection of Windy Hill and Mathias Lane, just to the southeast of the Shadow Creek MUD. The development will be somewhat unusual in that it will consist of a number of different lot widths mixed together.

"Most often development will come forward with what I call a pod or an area of the same lot widths," Sellers said. "They’ll offer different models within those pods but typically you’ll have a section of 40s, 50s, 60s, 70s, 80s — those are widths of lot frontages. In this case, we negotiated something a little different, a little creative."

Basically, this development sheds the pod concept and, instead, will contain , according to Sellers, "a mixture on each street on different product types on different lot widths," with 10 percent of the lots being 60-foot widths, 51 percent as 50-foot widths and the remaining 39 percent as 40-foot widths, with each home being at least 1,200 square feet. ‘Streets are being reduced to 50 feet of right-of-way with 28 feet of pavement curb-to-curb which does trigger parking on one side only," Sellers said.

Because the development is currently located in Kyle’s ETJ, maintenance of the roads will be the responsibility of Hays County until Kyle annexes the area. The developer, Sellers said, is paying for a dedicated right-turn lane from Windy Hill to Mathias. Sellers said he expects most of the Trails at Windy Hill residents attempting to drive to Austin will go north on Windy Hill to 2001 and not take Windy Hill back to I-35. However, residents working at the Kohlers Crossing commercial hub will most likely use that latter route. Regardless, Sellers said, Hays County is working with the Texas Department of Transportation "to improve" Windy Hill Road.

Sellers noted that the Windy Hill bridge, located between Purple Mountain Avenue and Indian Paintbrush, was one of the hardest hit areas of Kyle during the Halloween floods of two years go. "As you recall, the road deck was lifted up off of that bridge structure and washed away," rendering Windy Hill Road impassible. The city and the county collectively made temporary fixes to the road to make it operational again, all the while realizing a more permanent fix was needed to make sure, in Sellers’ words, "we wouldn’t suffer the same fate we did in two prior events." The city manager said after working with FEMA for 18 months to secure funding for the permanent bridge repair/replacement, the federal agency told the city the project did not qualify for funds. The estimated cost for repair on that stretch of Windy Hill, Sellers said, is $3.8 million, with the Texas General Land Office being willing to pay for only $1.8 million of it.

"That left the city staff scratching our heads wondering where we were going to find another $2 million to finish the improvements to Windy Hill," Sellers said, adding time was a factor since the GLO’s offer of $1.8 million was only on the table for two years.

"Working with the developer on this agreement, they have pledged to cover that gap for the city," Sellers announced last night. The developer will make this happen by being incorporated into the Shadow Creek MUD which has its own wastewater package plant. (The city doesn’t offer water or wastewater services to this area as of yet.)

The question, of course, is what appeal does this area have to potential homeowners to the extent that developers are willing to negotiate such a deal to establish homes in this area. One answer, of course, is availability, but there are plenty of other unoccupied areas in and around Kyle, especially to the south. But none that offer as direct an access to what is about to become Kyle’s commercial hub.

But there’s more to it than that because the same question can be asked of that hub. And the answer to that is simply that cities grow, they expand, northward. Look at the Dallas-Fort Worth area where all the major commercial growth took place to the north in places like Richardson, Garland, Plano, Frisco, Allen, etc. Here in the Austin area, the growth of communities like Round Rock, Cedar Park, Leander, Pflugerville et al have been far more pronounced than in Buda, Kyle, Dripping Springs. Why? Quite simply it’s because water flows to the south (the cowboys said it best: "Never drink downstream from the herd").

So all of this points to Kyle’s geographical center of gravity moving north from its current location near the intersection of Center and Front Street. I have been told by more than one source that federal officials now predict Kyle will top 100,000 in population within a quarter of a century, by the year 2040, to be exact. That’s two and a half times the current population. Expect the city to undergo that same type of transformation as was experienced by the communities of Collin County, and especially that area along Legacy Drive, during a less than 25-year period beginning in the mid-1980s. City government appears to already have outgrown the current City Hall and city leaders have already talked about developing a new government center located on Kohlers at or near the 1626 intersection.

What was it Bob Dylan wrote some 50 years ago? Oh yeah:


Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone.
If your time to you
Is worth savin'
Then you better start swimmin'
Or you'll sink like a stone
For the times they are a-changin'.

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."

Tenorio trying but is facing an uphill climb

If there was ever any doubt that Kyle city government is comfortably in bed with developers that doubt was put to rest at Tuesday’s City Council meeting during a discussion concerning amending a development agreement.

Moments before the item was discussed, assistant city manager James Earp provided the council what he admitted was an incomplete development agreement that hadn’t undergone legal review and told the council, in effect, the developer really wants us to show we support him on this so let’s show that we do by supporting this agreement.

Council member Daphne Tenorio told Earp and her fellow council members to hold their horses here, this document was just dumped in our laps seconds before, even Earp admitted more changes to it were likely and we really should take some time to review it. Then Mayor Todd Webster came very, very close to doing exactly the right thing, but fumbled at the goal line.

The subject under discussion was amending the Crosswinds Development Agreement.

The city had negotiated an agreement with previous owners of the development. But since that time the development had been sold and the new owners were seeking changes to that original agreement. Those desired changes were the subject of Tuesday night’s discussion.

Earp unapologetically told the council the new owners "have reviewed the development agreement and requested some changes. I’m going to summarize those for you. I provided each of you at your seat a copy of the most recent draft although there’s already been a few changes to that. I will tell you the draft is about 95 to 99 percent complete. We’ve pretty much have reached terms on all the items and all the issues we’re talking you through tonight, but legal still has to do legal review of the contract.

"But we wanted to make sure council could stand behind the negotiation points before we put the final touches on the agreement and give the developer the assurance that his agreement will be approved with the conditions that they have asked for." Earp actually said that. I’m not making it up. And he continued:

"At the very least, you all could take action to approve these points and then we would need to come back at the next council meeting with the actual agreement that has been vetted by legal and has all the finalized language to the satisfaction of the developer."

But Tenorio objected.

"I have just been given this and I haven’t had a chance to read it and you want me to approve it?" Tenorio quizzed Earp. "That’s what you’re asking?"

Earp’s response was unbelievable, at least to me.

"That’s not what I am asking," he replied. "That’s what the developer is asking." That’s City of Kyle talk for whatever the developer wants, we should give it to him on a silver platter.

Mayor pro tem David Wilson, one of the leaders of the pro-developer contingent in Kyle, said why should the council even bother itself with changes to the agreement anyway. The city already approved an agreement with the previous owners. Council doesn’t need to understand or even be aware of these changes. It should just blindly plunge forward and approve these amendments as well.

These developers, Wilson said "are getting their mind around what they want to do and move forward. I for one can move ahead with the approval of the development agreement at this particular point. A lot of expense has gone into the development at this point so I’m not interested in delaying that."

But even Webster had to admit Tenorio had a reasonable concern. Not only should council members have adequate time to review a document before approving it, he suggested, it should be a document that is complete and has passed legal muster.

"I think the proper way to do this would be to move to direct staff to basically produce an agreement according to these terms and then bring it back," Webster said. "If we direct staff to do that, then we are not formally approving it until legal review does the same thing. …I don’t know how you can ask us to approve a development agreement that really isn’t finalized and hasn’t had legal review. So come back at the next meeting with a development agreement according to the terms with legal review. If council member Tenorio or anyone else has any concerns they have time to express them. This gives us the opportunity to walk down the middle here and give everyone what they need."

But then he blew it by asking "Is the developer OK with that?"

Of course, it could have been worse. Without Tenorio acting as the people’s watchdog on this, I’m betting this agreement would have been approved Tuesday night without anyone on the council taking the time to review it.

I don’t know if anyone out there remembers the television show The Man From U.N.C.L.E., a marvelous tongue-in-cheek approach to the Cold War spy genre. One of the episodes of that program was called "My Baby Wants Cinemascope Technicolor, My Baby Gets Cinemascope Technicolor." Substitute the word "Developer" for "My Baby" in that title, and you have the Kyle city motto.