HomeMy WebLinkAboutRes 2019-03-557 MOU Sherley TractCITY OF ANNA, TEXAS
RESOLUTION NO. aL/q.-a3 - 6-57
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A NONBINDING
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF ANNA, TEXAS
AND MM ANNA 325, LLC, REGARDING NEGOTIATIONS FOR A POTENTIAL
SUBDIVISION IMPROVEMENT AGREEMENT FOR MIXED-USE DEVELOPMENT
OF THE SHERLEY TRACT
WHEREAS, MM Anna 325, LLC, a Texas limited liability company (the "Developer'),
desires to develop approximately 325.175 acres in and near the City of Anna, Texas
(the "City") as a master planned mixed use development; and
WHEREAS, the City Council finds that approval of the nonbinding Memorandum of
Understanding ("MOU"), a copy of which is attached as Exhibit A, will assist in outlining
the issues for negotiating a potential subdivision improvement agreement, which, if
adopted by the Developer and the City, will regulate the development of the Sherley
Tract; and
WHEREAS, the intention of the City in entering into the MOU is solely to express an
intention to enter into negotiations with the Developer for a potential development
agreement and the MOU does not bind or obligate the City in any manner;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS:
Section 1. Recitals Incorporated
The recitals set forth above are incorporated herein for all purposes as if set forth in full.
Section 2. Approval and Authorization of MOU
The City Council hereby approves the MOU, attached hereto as Exhibit A, incorporated
herein for all purposes, and authorizes, ratifies and approves the City Manager's
execution of same.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this 26th
day of March 2019.
ATTEST: �����,, APPROVED:
OF q/V
City Secretary, Carrie Smith Mayor, Nate Pike
5
March 26, 2019
Mr. Jim Proce
City Manager
City of Anna, Texas
111 N. Powell Parkway
Anna, Texas 75409
Re: Sherley Tract Subdivision Improvement Agreement Covering Approximately
290.877 acres of Land Located Within the Extraterritorial Jurisdiction (the "ETJ")
of the City of Anna, Texas (the "City") and Zoning of Approximately 34.298 Acres
of Land Located Within the City
MEMORANDUM OF UNDERSTANDING
Dear Mr. Proce:
Miklos Cinclair, PLLC is representing MM Anna 325, LLC (the "Developer") in the urban mixed-
use master planned development planned for approximately 325.175 acres of land, of which
approximately 290.877 acres is located within the ETJ of the City (the "ETJ Property") and the
remainder approximately 34.298 acres is located within the City (the "In -City Property"). This
Memorandum of Understanding outlines the Developer's proposed deal standards contained in the
Subdivision Improvement Agreement (herein defined) and the zoning of the In -City Property. The
City will consider zoning the In -City Property C-2 General Commercial upon the submittal of a
zoning application by the Developer or an affiliate of the Developer.
The Developer has submitted to the City a draft Sherley Tract Subdivision Improvement
Agreement (the "Subdivision Improvement Agreement") for the development of the ETJ Property.
If the City Council, at its sole discretion, determines that one or more of the below listed items is
sufficiently beneficial, desirable and feasible for the City to pursue, then—solely as relates to those
specific items—the City will make reasonable efforts to negotiate a version of such items suitable
to the City into a final Subdivision Improvement Agreement:
I. Public Improvement District
a. City to create a PID on the ETJ Property and levy assessments on or before
December 15, 2019
b. City to issue PID Bonds up to $32,000,000, in phases, beginning with Phase #1 and
the Major Improvements
c. Minimum lien to value ratio of 33.33% or agreement by parties
d. Maximum tax rate equivalent will not exceed a $0.86235 per $100 tax stack when
including all taxing entities, and after TIRZ credit
II. Tax Increment Reinvestment Zones
a. City to create a TIRZ on each development phase within the PID to offset PID
assessments, starting with a Phase #1 TIRZ to be created on or before December
15, 2019
b. Duration of each TIRZ is 31 years, or a certain maximum contribution amount to
be agreed upon in advance, whichever occurs first
c. 50% City participation rate on each TIRZ
III. District
a. If the City does not create the PID and the TIRZ on the ETJ Property by December
15, 2019, the City consents to the creation of the following types of districts
(collectively, the "District"):
i. Water Control and Improvement District ("WCID")
ii. Municipal Utility District ("MUD")
iii. Special district created by special law of the Texas Legislature such as
Municipal Management District, WCID, or MUD
IV. Water/ Sewer Service
a. The City will provide retail water and sewer service to the ETJ property regardless
of whether a PID or other District is created
V. Annexation/ Zoning
a. If the City creates the PID and issues PID Bonds, the Developer will file a voluntary
petition for annexation for the ETJ Property within sixty (60) days of the issuance
of the PID Bonds
b. The City will consider zoning the ETJ Property consistent with the Subdivision
Improvement Agreement, Concept Plan, and Development Standards upon
annexation
VI. Concept Plan
a. Initial Concept Plan will be included as Exhibit to Subdivision Improvement
Agreement
b. The City will approve a Final Concept Plan prior to the recording of a final plat for
the first (0) phase of development
VII. Development Standards
a. For discussion purposes, lot sizes ranging from SF -E to SF -Z lot types
b. SF-TH lot types
c. MF -2 lot types
Notwithstanding any provision of this Memorandum of Understanding, it is expressly understood
and agreed by the City and the Developer that this Memorandum of Understanding does not
obligate the City or the Developer to undertake any act, refrain from taking any act, or otherwise
bind the City or the Developer in any manner.
AGREED TO BY THE DEVELOPER:
Mehrdad Moayedi
MM Anna 325, LLC
Date: Mr,rclh 2Gr17-01
Jim ce, City Manager
Cit of , Texas
Date: max (A4 ,