Agenda No. 6.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | August 20, 2024 |
| Department: | Executive Team |
| Subject: | Resolution 24-R-95 - Authorizing Subdivision Improvement Agreements for the Saddlebrook Development. (S.Williams/B.James) |
BACKGROUND
On April 16, 2024 City Council approved Resolution 24-R-40 authorizing a pro-rata agreement, a cost sharing agreement, a roadway impact fee agreement and a subdivision improvement agreement with Ashton San Antonio Residential, LLC.
The developer had also asked to be able to enter into a subdivision improvement agreement to allow two of their plats to be filed prior to acceptance of public improvements. One is the lot for the future lift station but the other has lots for residential homes. Past direction from Council was not to allow platting of residential lots prior to acceptance of all public improvements so as to not potentially impact future home buyers and also as these agreements require a lot of staff time to draft, track, manage and close out. That direction came probably ten years ago. The developer indicated they would be willing to only allow the transfer of lots prior to acceptance of the public improvements to the builder (a different related corporation is the property owner). The developer would also be required to post a surety for the cost of the improvements not yet accepted. The developer is asking for a subdivision improvement agreement for four additional residential phases - Saddlebrook Units 2, 3, 4 and 6. There are a total of 252 lots in these phases (in addition to the 48 in the phase council previously approved.
Should the Council approve this request, staff will assume the Council's position has changed with regard to entering into subdivision improvement agreements and now is supportive of them. That will allow staff to communicate this to residential developers who routinely ask for these.
The developer had also asked to be able to enter into a subdivision improvement agreement to allow two of their plats to be filed prior to acceptance of public improvements. One is the lot for the future lift station but the other has lots for residential homes. Past direction from Council was not to allow platting of residential lots prior to acceptance of all public improvements so as to not potentially impact future home buyers and also as these agreements require a lot of staff time to draft, track, manage and close out. That direction came probably ten years ago. The developer indicated they would be willing to only allow the transfer of lots prior to acceptance of the public improvements to the builder (a different related corporation is the property owner). The developer would also be required to post a surety for the cost of the improvements not yet accepted. The developer is asking for a subdivision improvement agreement for four additional residential phases - Saddlebrook Units 2, 3, 4 and 6. There are a total of 252 lots in these phases (in addition to the 48 in the phase council previously approved.
Should the Council approve this request, staff will assume the Council's position has changed with regard to entering into subdivision improvement agreements and now is supportive of them. That will allow staff to communicate this to residential developers who routinely ask for these.
GOAL
Provide for the orderly development of infrastructure within the City of Schertz.
COMMUNITY BENEFIT
Provide for development of infrastructure in a timely, cost-effective manner.
SUMMARY OF RECOMMENDED ACTION
Staff is not recommending approval of Resolution 24-R-95 based on past Council direction.
FISCAL IMPACT
There is not anticipated to be any direct fiscal impact to the City. There is a cost of staff time associated with managing these agreements. There is a potential for the surety to not cover the full cost of constructing the improvements if the developer defaulted and the City had to step in to have the improvements constructed. That has not happened in the past in Schertz.
RECOMMENDATION
Staff does not recommend approval of Resolution 24-R-95.