On December 15, 2015, the City Council adopted Resolution No. 4554-12-2015 granting consent to creation of a 733.648-acre municipal utility district to be known as Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (District). The City Council with City Secretary Contract No. 47559 also authorized execution of Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 among the City of Fort Worth and Lackland Holdings, LLC, (Creation and Operation Agreement). The Creation and Operation Agreement required the District to enter into a Utility Agreement and the owner of land within the District to enter into a Development Agreement with the City after creation and confirmation of the District. During the process for creation of the District by the Texas Commission on Environmental Quality, it was determined that Denton County records reflect that approximately 13.745 acres of land proposed to be included in the District were not in Denton County. The City Council adopted Resolution No. 4652-06-2916 on June 28, 2016 revising Resolution No. 4554-12-2015 to adjust the boundaries of the District by deleting the 13.745 acres (Exhibit A). The City Council also approved an amendment to the Creation and Operation Agreement to reflect the reduction of the land area in the District. Such amendment has not been finalized and signed by the parties and the District is now requesting to re-annex the 13.745 acre tract. The District was created by order of the Texas Commission on Environmental Quality dated January 20, 2017 encompassing 719.903 acres. The adoption of the attached resolution will serve as the City's consent to the annexation of the aforementioned 13.745-acre tract by the District, resulting in a 733.648-acre district as originally consented to by the City Council. The District was granted road powers by the Texas Legislature by House Bill 4331 on May 20, 2017 to implement the roadway construction as agreed upon in the Utility and Infrastructure Agreement. Owner and District shall complete two lanes of Northstar Parkway from U.S. 81/287 to Sendera Ranch Boulevard before the City issues a building permit for the 600th single-family residence within the development. Owner and District shall complete the remaining two lanes of Northstar Parkway from US 18/287 to Sendera Ranch Boulevard before the City issues a building permit for the 1,000th single-family residence within the development. If the phased construction of the property significantly deviates from the approved preliminary plat, then the Transportation and Public Works Department may require the Owner to update the Traffic Impact Analysis and may require additional mitigation and/or amendment to the construction deadlines to accommodate the additional traffic impacts caused by the proposed deviations. In accordance with the Creation and Operation Agreement, the District and Northstar Ranch LLC, an affiliate of Lackland Holdings, LLC, and the current owner of all land within the District, have negotiated the Utility and Infrastructure Agreement and the Development Agreement with the City. The Development Agreement provides standards for development of the land within the District, as authorized by Section 212.172 of the Texas Local Government Code. The Utility and Infrastructure Agreement sets out utility fees and standards for design and construction of water, sewer and drainage infrastructure and roads to serve land within the District. The First Amendment to the Creation and Operation Agreement corrects the acreage and name of the District and extends certain dates for issuance of bonds by the District and annexation by the City of land within the District, in order to be consistent with the Development Agreement. As a condition to consenting to the annexation of additional property and requested amendments to the Creation and Operation Agreement, the current owner and the District agreed that the District shall levy a total ad valorem tax rate (including its debt service tax rate and maintenance and operation tax rate) of no less than $1.00 per $100.00 assessed valuation through the life of the District. This requirement will be reflected in the amended Creation and Operation Agreement of the District as well as the Development and Utility Agreements as applicable. The City will receive the revenue generated from the tax surplus upon annexation. The Strategic Partnership Agreement for limited-purpose annexation will come forward for the City Council's consideration once the statutorily required public hearings have been scheduled. The property is located in the City's extraterritorial jurisdiction adjacent to COUNCIL DISTRICT 7. |
