Municipal Development District Board Meeting February 28, 2018

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NOTICE OF REGULAR MEETING

February 28, 2018 SHENANDOAH MUNICIPAL DEVELOPMENT DISTRICT

STATE OF TEXAS AGENDA COUNTY OF MONTGOMERY CITY OF SHENANDOAH NOTICE IS HEREBY GIVEN that a Regular Meeting of the Shenandoah Municipal Development District will be held on Wednesday, February 28, 2018 at 6:00 p.m., at the City of Shenandoah Municipal Complex, 29955 IH-45 North, Shenandoah, Texas for the purpose of considering the following:

1. CALL TO ORDER

2. CALL OF ROLL 3. CITIZENS FORUM

Responses to inquiries are limited by state law to a recitation of existing policy or a statement of specific factual information given in response to the inquiry. Any deliberation or decision by the Board shall be limited to a proposal to place the subject on the agenda of a future meeting.

4. Discussion and possible action to approve impact fees for buy in to the east side detention pond.

5. Discussion and possible action to approve exchanging one half acre in lieu of buy in for future Centro development.

6. Ratify the accounts payable for January 2018.

7. City Administrator Comments

DIRECTORS’ INQUIRY

Pursuant to Texas Government Code Sect. 551.042, the Directors may inquire about a subject not specifically listed on this Agenda. Responses are limited to a recitation of existing policy or a statement of specific factual information given in response to the inquiry. Any deliberation or decision shall be limited to a proposal to place the subject on the agenda of a future meeting.

EXECUTIVE SESSION

Public notice is given that the Municipal Development District Board may elect to go into Executive Session at any time during the meeting in order to discuss any matters listed on the Agenda when authorized by the provisions of the Open Meeting Act, Chapter 551 of the Texas Government Code, to receive advice from legal counsel, to discuss matters of land acquisition, personnel matters or other lawful matters that are specifically related to items listed on this Agenda. Prior to any such closed session, the President, in open session, will identify the agenda item to be discussed and the Section or Sections of Chapter 551 under which the closed discussion is authorized.

Municipal Development District Board Meeting

February 28, 2018 Page 2 of 2

ADJOURN

There is the potential for a quorum of City Council members at this meeting.

City Hall is wheelchair accessible. A sloped entry is available at the entrance with specially marked parking spaces available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary’s office at (281) 298-5522 or Fax (281) 367-2225 for further information.

I certify that the attached notice of meeting was posted on the bulletin board at City of Shenandoah Municipal Complex, 29955 IH-45 North, Shenandoah, Texas, on the _23rd day of February, 2018 at 4:45 o’clock p.m. I further certify that the following news media was properly notified of this meeting as stated above: The Courier ____________________________ Courtney Clary, Assistant Secretary

Shenandoah Municipal Development District

AGENDA REPORT

Page 1

Revised 2016

Recommendation

Discussion

Bleyl & Associates worked up an estimated cost sharing breakdown for impact fees related to the east side relief pond (Option 1B). The breakdown includes the Centro development, both present and future, and other surrounding properties.

Mr. Crawford is the developer of the Centro project and will attend the meeting to discuss his participation.

Approved By Initial Date

Department Manager

City Administrator 02/23/2018

Meeting Date: February 28, 2018 Agenda Item No.: 4

Department: Administration Budgeted Amount:

Prepared By: Kathie Reyer Exhibits: Cost Sharing Breakdown

Subject

Discussion and possible action to approve impact fees for buy in to the east side relief pond.

Cost-Sharing RebuttalDrainage Proposal

City of Shenandoah

I. A Fairer Allocation Is Needed

1. It can be argued that the city is being too narrow with its allocation of land that drains into Carter’s Slough Tributary 1

2. Other areas should probably be shown as benefitting• DOT pond overflow• Existing “East” side city roads• Existing “East” side developments• Overflow from “West” side of Shenandoah

3. Problem is: • It is hard to quantify and agree on• So let’s move on but recognize the allocation is not perfect

II. Comparisons to Past Projects – Impact Fees

• What was charged to Lilly?• What was charged to BLVD Green?• What was charged to David Weekly?• Answer = $8,322 per acre• What is the city proposing to charge us?• Answer = $36,903 per acre• Clearly, the “East” side pond is subsidizing existing “West” side newer

development projects and legacy development drainage costs

IIIa. Insuring Future Tax RevenueOUR PROPOSED COMMERCIAL DEVELOPMENT ON THE EAST OF DAVID MEMORIAL

OUR PROPOSED COMMERCIAL DEVELOPMENT ON THE WEST OF DAVID MEMORIAL

IIIb. Insuring Future Tax Revenue

IIIc. Insuring Future Tax Revenue

• Building planned on East of David Memorial• 34,000 sqft

• Let’s assume a built out valuation of $10,000,000 for the property• Possible annual tax revenue of over $200,000

IV. Land to Contribute

• Palmetto MDR, LLC owns an extra half an acre adjacent to the city’s pond

• This land could be contributed to the city• Uses could include…

• Adding to the pond, or• Other amenities such as a dog park

• Possible valuation of half acre = $100,000

Summary

• The city’s current allocation of fees for the Shenandoah East Side Relief Pond Option 1B is a miss for the following reasons:

1. A fairer allocation of properties that drain into Carter’s Slough Tributary #1 is needed – BUT we agree it is too difficult to quantify and eventually agree

2. The historic detention impact fees for developers has been much lower than the fees proposed herein ($8K per acre before vs. $36K per acre now)

3. The city will lose out on tax revenues if Palmetto MDR has to build a pond on its 2.5 acres of land

4. Palmetto MDR has a half acre of land to contribute towards the pond or as anamenity

• The David Memorial Road currently floods in severe storms – this is an opportunity to impact this area positively

• There are other benefits to the city, including saved costs for future pond

Solution

• Per February 21, Bleyl “Cost Sharing Breakdown” • We will accept the current proposal as follows:

• Current “Centro” 9.74 acres only• $359,432• 37.5% of the total costs

• We will trade the “Future Centro” acreage as follows:• In lieu of future $91,888 we will trade ½ acre to the city• Roughly even value trade• And develop the commercial building creating future tax value for the city

Project Cost: $959,100

Area (ac) Cost Share $ / AcreCity - Undeveloped Tract 0.78 $28,784City - Water Plant 0.50 $18,451City - Option 1B Pump Station 0.06 $2,214David Memorial ROW 2.98 $109,970Centro 9.74 $359,432Future Centro 2.49 $91,888Even Hotels 6.37 $235,070Yvonne Property 3.07 $113,291Total 25.99 $959,100

$36,903

Cost Sharing (Option 1B By City)

Shenandoah East Side Relief Pond - Option 1BCost Sharing Breakdown

February 21, 2018

Shenandoah Municipal Development District

AGENDA REPORT

Page 1

Revised 2016

Recommendation

Discussion

Mr. Crawford, developer of the Centro project, owns additional land on the east side of David Memorial Drive that is planned for future development. He also has a half acre tract separate from the future development site. He proposes to donate the half acre of land in lieu of future impact fee payment.

Approved By Initial Date

Department Manager

City Administrator 02/23/2018

Meeting Date: February 28, 2018 Agenda Item No.: 5

Department: Administration Budgeted Amount:

Prepared By: Kathie Reyer Exhibits: Presentation

Subject

Discussion and possible action to approve exchanging one half acre in lieu of buy in for future Centro development.

2/23/2018 3:05:13 PM Page 1 of 2

Expense Approval ReportCity of Shenandoah By Fund

Payment Dates 01/01/2018 - 01/31/2018

AmountDescription (Item)Payment NumberPayment DateVendor Name (None)

Fund: 802 - Municipal Development District Capital Project Fun

15,772.84DAVID MEMORIAL EXTENSIO55801/10/2018D. GRIMM, INC.

68,261.50RETAINAGE DAVID MEMORIA55801/10/2018D. GRIMM, INC.

9,343.65CONSTRUCTION MDD PATHW55901/17/2018VACA UNDERGROUND UTILITI

19,261.93RETAINAGE - CONSTRCTION 55901/17/2018VACA UNDERGROUND UTILITI

450.00DEC 2017 ENGINEERING DAVI56001/31/2018BLEYL AND ASSOCIATES

3,120.00DEC 2017 SERVICES EAST SIDE 56001/31/2018BLEYL AND ASSOCIATES

1,500.00DEC 2017 TAMINA TRAFFIC C56001/31/2018BLEYL AND ASSOCIATES

4,320.00LANDSCAPE DAVID MEMORIA56101/31/2018EARTH FIRST LANDSCAPES LLC

Fund 802 - Municipal Development District Capital Project Fun Total: 122,029.92

Grand Total: 122,029.92

Expense Approval Report Payment Dates: 01/01/2018 - 01/31/2018

2/23/2018 3:05:13 PM Page 2 of 2

Report Summary

Fund SummaryPayment AmountFund

802 - Municipal Development District Capital Project Fu 122,029.92

122,029.92Grand Total:

Account SummaryPayment AmountAccount Number Account Name

802-15-66-663720 Tamina Rd/I-45/Researc 1,500.00

802-15-66-668000 North/South Rd. Extensi 450.00

802-15-66-669900 Capital Projects 120,079.92

Grand Total: 122,029.92

Project Account SummaryPayment AmountProject Account Key

**None** 4,620.00

CONSTRUCTION 15-30-04 9,343.65

CONSTRUCTION 16-30-09 15,772.84

LANDSCAPE 4,320.00

PROFESSIONAL SERVICE 17-30-05 450.00

RETAINAGE 15-30-04 19,261.93

RETAINAGE 16-30-09 68,261.50

Grand Total: 122,029.92