and held work - mesquiteapps.cityofmesquite.com/city_secweb/records/councilweb/b...minutes of work...

MINUTES OF WORK SESSION AND REGULAR CITY COUNCIL MEETING HELD BEGINNING AT 1 1 :30 A.M., DECEMBER 7, 1998, CITY COUNCIL CHAMBER, CITY HALL, 7 1 1 N. GALLOWAY.

Present: Mayor Mike Andersoq Councilmembers John Heiman, Steve Whitworth, Steve Alexander, David Paschal, James Folks, and Carole Lochhead; City Manager Ted Barron and City Secretary Ellen Williams.

PRE-MXETCNG - CITY COUNCIL CONFERENCE-ROOM - 11~30 A.M.

The City Council met in the City Council Conference Room beginning at 11:30 a.m. to discuss the items on the Work and Regular Agenda and to meet with Dallas County Commissioner Mike Cantrell.

WORK SESSION - C ITY COUNCIL CUMBER - 1:OS P.M.

A. INTRODUCTION OF THE DIRECTOR OF THE CONVENTION AND VISITORS BUREAU FOR THE MESQUITE CHAMBER OF COMMERCE.

Terry McCuUar, President of the Chamber of Commerce, introduced April Allen, the new Director of the Convention and Visitors Bureau.

B. INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 3 0.1 998 - RECEIVED.

Don Simons, Director of Finance, presented the investment report for the quarter ending September 30, 1998.

C . FREEPORTEXEMPTION-DISCUSSED.

Tom Palmer, Manager of Economic Development, stated that the Freeport Exemption was first reviewed as an issue by the Mesquite Economic Development Foundation and information was submitted to the City Council and Mesquite Independent School District Board of Trustees several years ago. Mr. Palmer estimated that City revenues will be reduced by $465,184.00 with the Freeport Exemption and an estimated cornrnerciaI value of the exemption of $80,000,000.00 set by the current tax rate of $0.58 148 per $100.00 valuation. It is estimated that on a five-year average, it would take 1.37 years to recoup the $465,184.00 reduction in revenues, and on a three-year average, it would take slightly under one year to recoup the reduction in revenues. Mr. Palmer introduced Pat Sloan, representing Arthur Andersen Consulting, who presented an analysis of the impact of the Freeport Exemption.

001:o Minutes of regular City Council Meeting held December 7,1998

Mr. Sloan explained that the Freeport Exemption was instituted in 1990 by the State legislature to address the problem of competition with other states. Many other states do not tax inventory for resale. Since its inception, the exemption has become a popular mechanism for encouraging industry growth especially in metropolitan areas. The exemption addresses inventory that is sent out of state within 175 days. Mr. Sloan explained that the Dallas Central Appraisal District requires businesses to annually file

I documentation indicating the total cost of goods sold, inventory level as of the assessment date, and the percentage of inventory that goes out of state.

Mr. Sloan stated that since 1990, Freeport goods have been among the fastest growing exemptions and 34% of taxing jurisdictions in the state grant Freeport Exemptions. The value of the exemption has grown an average of 19% annually between 1990 and 1995. M. Sloan cited examples of increased commercial and industrial development in specific areas since the inception of the Freeport Exemption by the jurisdictions, including Denton County, the City of Plano and the City of Garland.

Mr. Sloan explained that the Freeport Exemption is a major factor when commercial and industrial business owners are looking for space, especially companies who have a large investment in their inventories. Mer surveying red estate brokers throughout the metroplex, it appears that the Freeport Exemption is a number one selection criteria for high-inventory tenants and is even becoming more important than location, accessibility, visibility, or buiIding features. Also, Freeport is a factor in whether a company stays in a city Mr. Sloan stated that Mesquite is currently at a competitive disadvantage with cities such as Lewisville and Grapevine due to availability of Triple Freeport, additionaI tax incentives and corporate incentives.

Mr. Sloan stated that the survey performed by Arthur Andersen indicates that local taxpayers have a strong interest in the Freeport Exemption and most indicated an interest in participating in a pilot, or payment in lieu of t q program.

D. EXTEND TIhE FRAME FOR FWAL REPORT TO BE GIVEN BY MESQUITE METRO AIRPORT TASK FORCE - APPROVED.

Deputy City Manager Carol Zoherowich explained that earlier this year the Council created the Mesquite Metro Airport Task Force whose duties include preparation of an airport economic plan that will make recommendations on how to eliminate the Auport General Fund subsidy. Ms. Zolnerowich Wher explained that because the Task Force is also participating in the Airport Master Plan update, the Task Force feels it would be prudent to complete the Master Plan prior to preparation of its final economic plan report for Council. Therefore, the Task Force is requesting that Council extend the time frame for delivery of the Airport Economic Plan until after the Airport Master Plan is completed which is estimated to be September 1999.

Minutes of regular City Council Meeting heId December 7,1998

Mr. Heirnan moved to extend the time frame for delivery of the Airport Economic Plan until after the Airport Master Plan is completed. Motion was seconded by Ms. Lochhead and approved unanimousIy.

E. GUIDELINES AND CRITERIA FOR TAX ABATEMENT AGREEMENTS - DISCUSSED.

Tom Palmer, Manager of Economic Development, explained that state law requires cities to develop guidelines and criteria for the establishment of reinvestment zones and tax abatement agreements and to review every two years for any revisions. Mr. Palmer further explained that the current guidelines and criteria will expire in April of 1999, and s t 8 recommends several modifications. Mr. Palmer stated that periodic updates will be provided outlining the progress made in developing revised guidelines and criteria that meet the objectives of the Council. Mr. Palmer provided a copy of the existing guidelines and criteria and outlined some revisions to be made, including Section 2, Ineligible Property, and Section 3, Minimum Criteria. He recommended that instead of a $2 million base value, the agreement require a total project cost inchding the cost of land, construction and equipment be set at a minimum dolIar value, possibly $500,000.00. Mr. Palmer also recommended a revision to Section 7, Assignment, to reflect that if a name change at a corporate level occurs which does not materially affect the operations at the plant, that change may be considered an administrative procedure which does not require Council approval. However, if a change occurs that afTects the type of product being manufactured, wage rates, employment levels, expansion plans, or anythmg that actually affects the existing tax abatement criteria guidelines, it will be reviewed and approved by Council before ownership is transferred to the new owners.

Mr. Palmer explained that the application wilI be revised to include an Economic and Fiscal Impact Questiomaire. Once the application and questionnaire are submitted, a cost benefit analysis will be calculated. He stated that the guidelines will be revised to include screening criteria so that applications can be reviewed at a sta£F/ committee level. The CounciI will only consider those requests that meet the application guidelines.

Mr. Palmer stated that there is one tax abatement request that wiU be considered under the current policy and guidelines. Staff is currently reviewing the application to determine ifthe minimum criteria is met.

Mr. Palmer also provided a summary of current tax abatements and proposed rate of returns to the City.

The work session ended at 1 5 5 p.m.

00112 Minutes of regular City Council Meeting held December 7,1998

REGULAR CITY COUNCIL MEETING - 3:15 P.M.

Invocation was given by Ken Hamric, Pastor, St. Marks United Methodist Church, Mesquite, Texas. I

The Pledge of AlIegiance was led by Caitlin Taylor, Courtney Obrien, Brad Rowan, and Rebecca Joseph, Hth grade students at Austin EIementary School.

SPECIAL ANNOUNCEMENT.

Mayor Anderson announced that Christmas In The Park is scheduled for Thursday, December 10 through Saturday, December 12 at Westlake Park and invited everyone to attend the event coordinated by the Parks and Recreation Department.

PRESENTATION OF PLAQUE.

1. PRESENTATION OF A PLAOUE TO STUDENTS AT POTEET HIGH SCHOOL IN RECOGNITION OF THEIR VOLUNTEJ32 SERVICE ON THE POTEET ENVIRONMENT AND COMMUNITY ENTERPRISE II PROJECT.

Mayor Anderson presented a plaque to students at Poteet High School in recognition of their volunteer service on the Poteet Environment and Community Enterprise I1 Project (P.E.A.C.E.).

A P P O I N m N T FOR PERSONAL APPEARANCE.

2. APPOMTMENT - S m E Y MCDEARMAN. 836 PECAN DRIVE - REQUEST CONNECTION TO THE SANITARY SEWER SYSTEM AT 924 SIERRA DRIVE - POSTPONED.

Mr. Folks moved to postpone consideration of the request 'to connect to the sanitary sewer system at 924 Sierra Drive at the request of Shirley McDeman. Motion was seconded by Mr. Alexander and approved unarlimously.

CITIZENS IIYPUT HEARINGS. >

. 3. A. PUBLIC HEARING - RECEIVE MPUT FROM CITIZENS REGARDING THE ALLOCATION OF PROPOSED W S RECEIVED THROUGH TWE LOCAL LAW ENFORCEMENT BLOCK GRANTS PROGRAM.

Minutes of regular City Council Meeting held December 7,1998 0 0 1 1 3

I A public hearing was held to receive citizen input regarding the allocation of proposed funds received through the Local Law Enforcement Block Grants Program.

Police Chief b m o n Ivie explained that the Mesquite Police Department has received commitment for a block grant award from the U.S. Department of Justice, Bureau of Justice Assistance (BJA), under the Local Law Enforcement Block Grants Program in the amount of $142,662.00. The grant will require a local cash match of $1 5,740.00. He stated that there is also a carryover of previous year's grant funds that may be expended this year.

Chief Ivie stated that allocation of funds includes the purchase of equipment such as gas masks, laptop computers, laser speed detection devices, shotgun replacements, patrol computers, pofiable radios, video office equipment, scanner and copier, as well as expenses related to the Citizens Police Academy. In addition, grant funds will be used to evaluate alternative concepts for the replacement of mobile data terminals currently in use in the Patrol Division after the new CADtRMS System is in place.

No one appeared regarding the allocation of proposed funds received through the Locd Law Enforcement Block Grants Program. Mayor Anderson declared the public hearing closed.

B. RESOLUTION NO. 40-98 ALLOCATING PROPOSED FUNDS RECEIVED THROUGH TEIE LOCAL LAW ENFORCEMENT BLOCK GRANT PROGRAM - APPROVED.

Mr. Heiman moved to approve Resolution No. 40-98, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESQUITE, TEXAS, ALLOCATING FUNDING RECEIVED THROUGH T I E LOCAL LAW ENFORCEMENT BLOCK G M S PROGRAM AND PROVIDING AN EFFECTIVE DATE THEREOF. Motion was seconded by Mr. FoIks and approved by all voting "aye." (Resolution No. 40-98 recorded on page of Resolution Book No. 25 .)

4. PUBLIC HEARING - RECEIVE CITIZEN INPUT REGARDING THE CONSOLIDATED ANNUAL, PERFORMANCE ANTI EVALUATION REPORT WHICH IDENTIFIES PROJECTS FUNDED THROUGH THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.

A public hearing was held to receive input from citizens regarding the Consolidated AnnuaI Performance and Evaluation Report (CAPER) which identifies projects funded through the Community Development Block Grant (CDBG) Program.

O O I ~ ~ Minutes of regular City Council Meeting held December 7,1998

Greg Adams, Planner, explained that CAPER is a summary of dl CDBG accomplishments for the program year beginning October 1, 1997, through September 30, 1998. He stated that during the program year, there was a total of $1,168,902.00 in expenditures. Of the totd year's expenditure, approximately 40% was incurred in the housing rehabilitation program. Mr. Adams stated that in addition to the housing rehab project, CDBG funds were spent on the Edgemont Park project which completed the work that began several years ago, and miscellaneous park projects, as we1 as other public service projects.

No one appeared regarding the Consolidated Annual Performance and Evaluation Report. Mayor Anderson declared the public hearing dosed.

Mr. Whitworth moved to adopt the Consolidated Annual Performance and Evaluation Report (CAPER) for the project year beginning October 1, 1997, through September 30, 1998. Motion was seconded by Ms. Lochhead and approved unanimously.

CONSENT AGENDA.

Mr. Alexander moved to approve the items on the Consent Agenda, as follows. Motion was seconded by Mr. Paschal1 and approved unanimously.

5 . MTNUTES OF REGULAR CITY COUNCIL MEETING HELD NOVEMBER 16. 1998. I

6. ORDINANCE NO. 3274 - AMENDING SECTION 15.2 OF THE GENERAL GOVERNMENT POLICIES AND PROCEDURES REGARDNG VACATION LEAVE.

AN ORDNANCE OF THE CITY OF MESQUITE, TEXAS, REVISING THE GENERAlL GOVERNMENT POLICIES AND PROCEDURES MANUAL BY CHANGING CHAPTER 15, SECTION 75.2, THEREBY PROVIDING FOR CHANGES REGARDING VACATIONS FOR mGULAR FULL-TIME EMPLOYEES; PROVIDING A SEVERABILITY CLAUSE AND ESTABLISHING AN EFFECTIVE DATE THEREOF. (Ordinance No. 3274 recorded on page of Ordinance Book No. 64.) :

7. RESOLUTIONNO.41-98-REQUESTINGFINANCIALASSISTANCE FROM THE TEXAS DEPARTMENT OF TRANSPORTATION FOR AN AIRPORT T E W A L BUILDING AT MESOUITE METRO AIRPORT.

A RESOLUTION OF THE CITY COUNCIL OF TElE CITY OF MESQUITE, TEXAS, REQUESTING A GRANT FROM THE TEXAS DEPARTMENT OF TRANSPORTATION FOR THE CONSTRUCTION OF A NEW

Minutes of regular City Council Meeting held December 7,1998

AIRPORT TERMINAL BUILDING FOR MESQUITE METRO AIRPORT; DESIGNATING TEXAS DEPARTMENT OF TRANSPORTATION AS AN AGENT FOR THE PURPOSES OF APPLYING FOR, ECETVING AND DISBURSING ALL FUNDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL CONTRACTS AND AGREEMENTS AS NECESSARY; AND PROVIDING AN EFFECTIVE DATE THEREOF. (Resolution No. 41-98 recorded on page of Resolution Book No. 25.)

8. BID NO. 99-25 - MOWING OF CITY PARKS AND SPECIAL AREAS FOR THE 1999 MOWING SEASON - AWARDED TO FOUR-S CUSTOM SERVICES IN THE AMOUNT OF $104,334.58.

9. BID NO. 99-26 - MOWING OF CITY RIGHTS-OF-WAY FOR THE 1999 MOWING SEASON - AWARDED TO FOUR-S CUSTOM SERVICES IN THE AMOUNT OF $62,465.67.

10. BID NO. 99-30 - TRAILER-MOUNTED CRACK SEAL MACHINE - AWARDED TO BARNSCO. MC.. IN THE AMOUNT OF $21.684.04.

1 1 . BID NO. 99-3 3 - ANNUAL SUPPLY - LIGHTING SUPPLIES - AWARDED TO VOSS LIGHTING IN THE AMOUNT OF $15.654.26.

12. BID NO. 99-35 - ANNUAL SUPPLY - VEXJICLE AND EQUIPMENT FILTERS - AWARDED TO STEWART AND STEVENSON IN THE AMOUNT OF $16.383.40.

13. SOUTHWESTERN BELL AUTHORIZED TO INSTALL AN UPGRADE TO THE EMERGENCY 9-1-1 EQUIPMENT FOR A ONE- TIME CHARGE OF $750,000.00 AND A RECURRING MONTHLY CHARGE OF $1.501.20.

14. REVISED LIST OF QUALIFIED BROKERS AUTHORIZED TO ENGAGE IN INVESTMENT TRANSACTIONS WITH Tl!E CITY - APPROVED.

15. ' CITY MANAGER AUTHORIZED TO EXECUTE A PROFESSIONAL SERVICES CONTRACT WITH DCI ARCHITECTURE IN THE AMOUNT OF $1 6.800.00 FOR THE PEACHTREE MIXED USE DEVELOPMENT CONCEPT PLAN.

Minutes of regular City Council Meeting herd December 7,1998

16. CITY MANAGER AUTHORIZED TO EXECUTE A PROFESSIONAL SERVICES CONTRACT WITH BYRDlFORBES ASSOCIATES. INC., IN AN AMOUNT NOT TO EXCEED $333.734.65 FOR ENGINEERING AND FIELD S m E S FOR THE IDENTIFICATION AND REDUCTION OF SANITARY SEWER INFLOW AND INFILTRATION.

17. CITY MANAGER AUTHORIZED TO EXfKUTE A PIPELINE CROSSING AGREEMENT WITH THE W O N PACIFIC RAILROAD COMPANY FOR AN AMOUNT NOT TO EXCEED $3.776.00 IN CONNECTION WITH THE EBRITE SANITARY SEWER PROJECT.

PUBLIC HF,ARINGS.

18. PUBLIC HEARING - APPLICATION NO. 1702- 1 SUBMITTED BY WYNNEIJACKSON. TNC. - APPROVED.

Mayor Anderson announced that he wouId abstain from voting on this item.

Mayor Anderson left the meeting and turned the chair over to Mayor Pro Tern Lochhead.

A public hearing was held to consider Application No. 1702-7 submitted by I

WynndJackson, Inc., for a zoning change fiom Agricultural to R-2A Residential on part of Tract 3, Page 465, Abstract 1702, and part of Tract 4, Page 205, Abstract 160. This property is further described as an 85.6 acre tract located on the northwest corner of the Clay-Mathis Road and Lawson Road intersection. Consideration of this application was postponed at the October 19, 1998, meeting at the request of the applicant, and was postponed at the November 2, 1998, and November 16, 1998, meetings at the request of the City Council.

Frank Murphy, representing WynnelJackson, hc., appeared regarding the application. He stated that the developer has reviewed the suggestion to place deed restrictions on property within the 65 Ldn noise contour h e . He explained that the builders contacted felt the deed restrictions would have a h d l effect on the sale of these homes, especially the homes near the creek line. These homes are plahed to be the larger, more expensive homes in the subdivision and the proposed deed restrictions would reduce the value of the homes. Mr. Murphy further stated that putting deed restrictions on homes that may fall within the revised 65 Ldn noise contour line will reduce the marketabib of the entire develotlment.

Councilmembers requested the number of homes that will be under construction by September of 1999, since this is the proposed completion date of the

0 0 1 1 7 Minutes of reguIar City Council Meeting held December 7,1998

revised Airport Master Plan. They also requested that Mr. Murphy make a verbal commitment that the homes that fall within the revised 65 Ldn noise contour line wiIl be built with noise abatement features.

Mr. Murphy stated that there may be some homes under construction in September 1999; however, expressed doubt that any of the proposed development will be included in the revised 65 Ldn line. Ifa portion of the development is shown to be within the revised 65 Ldn line, those homes will be required to fo1Iow Federd Aviation Administration (FAA) and City spec8cations using noise abatement features. Mr. Murphy agreed that the minimum dweIling unit sizes would be revised to 1,800 square feet (66%) and 2,000 square feet (34%) if the minimum front yard set back remains at 20 feet (50%) and 25 feet (50%) in order to allow the staggering affect within the subdivision.

No one appeared regarding the proposed zoning change. Mayor Pro Tern Lochhead decIared the public hearing closed.

Mr. Heiman moved to approve Zoning Application No. 1702-1, subject to the following conditions:

1. Standards of the R-2A District shall apply, except as modfied below;

2. Required minimum dwelling unit size shaU be as follows: 66% no less than 1,800 square foot minimum 3 4% no less than 2,000 square foot minimum;

3. Maximum number of lots dowed shaIl not exceed 3.75 Iots per gross acre;

4. Minimum front yard setback on 50% of the lots may be 20 feet provided that homes along the block face are staggered with at least 50% of the homes having a 25 foot minimum fiont yard setback;

5 . Alleys shall not be required for lots along the creek, provided that on front entry Iots, the garages shall either not open toward the street, or shall include single-car doors separated by a masonry coIumn;

6 . A homeowners association shall be created with mandatory - membership for all property owners in the Planned

Development; 7. Maintenance of all open space, common areas, entry

features, walls and landscaping shall be the responsibility of the homeowners association;

0 0 1 1 8 Minutes of regular City Council Meeting held December 7,1998

Motion was seconded by Mr. Alexander. On call for a vote on the motion, the following votes were cast: I

Ayes : Heiman, Alexander, Lochhead, Folks Nays : Whitworth, Paschal1 Abstention: Anderson

Motion carried.

Mr. Whitworth expressed appreciation for the patience of the appIicant and stated that the zoning package and the deed restrictions were well done. He explained that he did not expect the revised 65 M n to fall within the WynndJackson development; however, the no vote was due to the recommendation of the FAA to wait until the completion of the Airport Master Plan to consider a zoning application for structures in this area.

19. PUBLIC HEARING - ALTERNATE SCREENING METHOD FOR EXTENDED STAY AMERICA LOCATED AT 2546 U.S. HIGHWAY 67 - APPROVED.

A public hearing was held to consider an alternate screening method for Extended Stay America located at 2546 U.S. Highway 67.

Tom Poole, representing Extended Stay America, presented the request, which will d o w the construction of an eight-foot wrought iron fence with brick columns and a landscape hedge along the northeast and southeast boundaries of the property in Iieu of an eight-foot masonry fence. He explained that the design of the wrought iron fence has been revised as recommended by the City Council at its November 2, 1998, meeting.

No one appeared regarding the proposed zoning change. Mayor Pro Tern Lochhead declared the public hearing closed.

Councilmembers requested clarZcation of the proposed alternate screening method.

Roger Hanz, City Planner, explained that the proposed alternate screening will include wrought iron fencing with brick columns, landscape hedges and irrigation dong the northeast and southeast boundaries. He fur&her explained that the northeast property is adjacent to South Mesquite Creek and the creek is between the hotel deveIoprnent and the adjoining apartments. The southeast boundary is adjacent to the hotel and vacant light commercial p r o p e e and joins the Churchill Crossing Apartments' parking lot. The screening will be from the nonresidential uses immediately to the parking lot of the multifamily development.

Minutes of regular City Council Meeting held December 7,1998 0 0 1 1 9

Mr. Hanz stated that the vacant land between the hotel and Gus Thomasson Road is zoned light commercial and would allow uses such as other hotels, fast food restaurants and other restaurants, shopping centers, and personal services; however, no outdoor storage will be allowed. Staff recommends wrought iron fencing with brick columns and landscaping as an appropriate screening along the entire boundary since the adjoining use is a parking lot. Mr. Ham explained that the request being considered at this time is for the hotel only, and that a request for alternate screening will be required at the time of development of the vacant property.

Mr. Folks moved to approve the alternate screening request for Extended Stay America located at 2546 U.S. Highway 67, as described by Mr. Hanz. Motion was seconded by Mr. Alexander. On call for a vote on the motion, the folIowing votes were cast:

Ayes: F o k , Alexander, Heiman, Whitworth, bchhead Paschal1

Nays : None Absent: Anderson

Motion carried.

A brief recess was taken.

Mayor Anderson entered the meeting.

20. CONSIDERATION OF A PETITION, RESOLUTION, ORDINANCES, AND PUBLIC EIXARLNGS.

A. PUBLIC HEARING TO CONSIDER CREATION OF THE FALCON'S LAIR TAX INCREMENT FINANCE (TIF) REINVESTMENT ZONE NO. 3 -POSTPONED.

B. CONSIDERATION OF AN ORDINANCE CREATING THE FAtCOMS LAlR TAX KNCREMENT FINANCE R E r n S T M E N T ZONE NO. 3 AND ESTABLISHZNG A FALCONS LAIR TAX INCREMENT FINANCE REINVESTMENT ZONE NO. 3 BOARD OF DIRECTORS - POSTPONED.

C. CONSIDERATION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT OF PARTICPATION IN THE FALCON'S LAIR TAX INCREMENT FINANCE DISTRICT NO. 3 WITH THE MESQUITE INDEPENDENT SCHOOL DISTRICT - POSTPONED.


D. P D L I C HEARING TO CONSIDER APPLICATION NO. 569-3 SUBMITTED BY FALCONS LAIR, LP, AMENDING PLANNED DEVELOPMENT ORDINANCE NO. 2286 TO ALLOW THE REZONING OF TWENTY-TWO TRACTS IN TKE NORTH SECTION OF THE DEVELOPMENT KNOWN AS FALCONS LAIR LOCATED IN SOUTHEAST MESQU'I'E, SOUTHEAST OF LAWSON ROAD AND WEST OF THE EAST FORK. OF THE TRINITY RIVER - POSTPONED.

E. CONSIDERATION OF A PETITION SUBMUTED BY FALCONS LAIR LP, REOUESTWG ANNEXATION OF A 40.479 ACRE TRACT LOCATED ADJACENT TO THE FALCON'S LAIR UTILITY AND RECLAMATION DISTRICT IN SOUTHEAST MESQUITE - POSTPONED.

F. AN ORDINANCE ANNEXING A 40.479 ACRE TRACT LOCATED ADJACENT TO THE FALCON'S LAIR UTILITY AND RECLAMATION DISTlUCT SOUTHEAST MESQUITE - POSTPONED.

Ike Shupe, acting as spokesperson for the Falcon's Lair team, introduced the other team members including Spencer Alpert, owner; Art Barnes, Barnes Company; Bob Zollars, Huitt and Zollars Engineers; and Mark Stein.

Mr. Shupe explained that in meetings with staff regarding the proposed zoning, staff identified areas of concern with the existing Falcon's Lair zoning. Mr. Shupe stated that development under the existing Falcon's Lair zoning wiII produce a quality product; however, the proposed zoning addresses the concerns previously identified by staff. He reviewed the major factors of the proposed zoning request and the Tax Increment Finance (TIT) District including: (I) reduction in the overall density within the Falcon's Lair project by approximately one-third by reducing residential units from 3,050 to 2,036, and the number of larger lots increased tiom 386 to 520; (2) utilization of a f i l plan rather than a levee system; (3) enhanced standards for the golf course design; (4) enhanced standards for townhouse and muItifamil y development; (5) enhanced Iandscaping standards; (6) increased open space areas by approximately one-third from 254 acres to 346 acres; (7) increased minimum d w e h g unit sizes, and (8) elimination of development within the runway protection zone (clear zone) which would be in conflict with the Federal Aviation Administration (FAA) requirements. The only construction within the runway protection zone will be the golf course. Mr. Shupe explained that if the length of the proposed 7,000 foot runway is reduced, thus reducing the runway protection zone, some mixed-use development may be built in this area. In addition, Mk. Shupe stated that only compatible land uses wilI be developed within the current 65 Ldn noise contour line.


Mark Stein reviewed benefits of the proposed TIF District for the Falcon's Lair development which includes a twenty-year payback. Mr. Stein stated that the total amount of principIe to be advanced by the deveIoper is $15.3 million with a $4.6 million (29%) participation by the City and an $1 1.0 million (71%) participation by Mesquite Independent School District (MISD), if MISD agrees to participate. He Wher stated that $15.519 million for principle and $15.3 million for interest wilI be reimbursed for a total reimbursement of approximately $32 million. Mr. Stein confinned that the proposed TJF can be paid off sooner than twenty years if the revenue generated is sufficient, and the TIF District could be eliminated at that time.

Mi. Stein stated that the $4.6 million which will be reimbursed by the City to the devefoper reflects today's dollars. The total amount actually paid over the life of the TIF is $8.964 million which includes interest. He further stated that total revenue retained by the City over the twenty-year TIF including red property tax, business property tax and sdes tax is approximately $21.0 million in current dolIars or $41.5 million in future dollars. Revenues retained by the City without a TIF total $16.8 million in current dollars. Also, administrative fees will be paid to the City by the developer in the amount of $300,000.00 (current dollars) and there will be a s m d residual in the TF Fund at the end of the twenty-year period in the amount of approximately $200,000.00 to be shared between the City and MISD.

Mr. Stein stated that a residential development typically does not generate enough revenue to reimburse cities the expense involved in providing services to the residential development. He further stated that it is the adjacent cornmerciaVindustrial development that subsidizes the residential investment for most cities. The residential development would have to hcIude very expensive homes in order for revenue to equal service costs. Mr. Stein explained that if a partial buildout was estimated on the proposed TIF District rather than a complete buildout, there would not be sufficient hnds to repay the developer's initial capitd investment.

Mr. Stein explained that the interest rate to be used over the life of the TIF d be negotiated between the City and the developer and estimated it to be between 5% and 7%. Mr. Alpert expIained that the interest paid will go to the bond holders of the bonds issued by the Falcon's Lair Utility and Reclamation District to develop the Falcon's Lair project. He stated that the TIF Board of Directors and developer wiII negotiate an interest rate and that rate will have to be approved, along with the Financing Plan, by the City Council.

Roger Hanz, City Planner, outlined the major changes submitted by the developer as part of the proposed zoning change for the Falcon's Lair project including a s iwcant reduction in densities and upgrade in minimum unit sizes, additional standards for townhouse and multifamily development, additional standards for landscaping, arterial Iandscaping, golf course standards, airport protection, removal of any development from the runway protection zone, and removal of incompatible uses from the existing 65 Ldn

00122 Minutes of regular City Council Meeting held December 7,1998

noise contour line. The proposed mixed-use area is structured to provide a method of dealing with a possible expanded noise contour area. Mr. Hanz stated that staff prefers the fill plan rather than the levee system because of the possibility of catastrophic failure of a levee. He added that the annexation request should be considered prior to consideration of the ordinance establishing the TIF District. He further stated that the existing ordinance allows the submittal of Site Plans for consideration of tracts outside the floodplain;

I however, the development of the golf come and levee system will have to be underway for deveIopment to proceed. If Site PIan approval is obtained for a tract outside the floodplain and schedules can be provided indicating progress in golf course design and construction and reclamation, development of the tract may proceed. However, if it becomes apparent Iater that there is no substantial progress in the reclamation or golf course construction, future site plans would not be approved because the basic requirements of the Planned Development are not being met.

Mr. Hanz explained that the proposed zoning alIows the deveIopment of commercial, 600 units of townhouses and 900 units of multifamily within the existing noise contour line. If the current noise contour line remains constant, it will allow this development. However, if the noise contour line is extended so that the bulk of the land north of South Mesquite Creek is incIuded in the revised noise contour line, some development may have to occur within the revised noise contour line in order to accommodate the total number of units aIlowed. Noise attenuation features will be required as speczed by FAA regulations and avigationd easements will be obtained. In addition, the City staff and the developer will consult with the FAA regarding land use compatibility. Mr. Hanz further stated that staErecornmends that no incompatible uses be allowed within the existing 65 Ldn noise contour line; however, if the FAA indicates that multifamily is acceptable, some multifamily units may be located w i t h the existing 65

B Ldn he. Mr. Hanz krther explained that existing zoning allows the construction of single family, townhouses and multifamily within the current 65 Ldn noise contour, and retail and single family development are allowed in the runway protection zone (clear zone). If the proposed zoning and TII: District are not approved, the City may need to acquire 17.5 acres which is the area within the runway protection zone, and may ultimately need to consider purchasing some or all of the 26.3 acres within the 65 Ldn noise contour zone. The estimated cost to purchase the 17.5 acres is $1.5 million with an eventual 90% reimbursement by the FAA. The estimated cost to purchase the 26.3 acres within the 65 Ldn is $4.0 d o n . The proposed zoning change reflects no structures constructed within the runway protection zone and no incompatible land uses within the existing noise contour.

Tom Palmer, Manager of Economic Development, provided information regarding the cost of services for the proposed TIF District. He explained that a service cost of $590.00 per year was established for each dwefling unit and this service cost was multiplied by the estimated number of dwelling units over the twenty-year Iife of the TF. The total estimated cost of services over twenty years with the TIF is $25,000,000.00 in current dollars and an estimated cost of $36,000,000.00 in current I

Minutes o f regular City Council Meeting held December 7,1998

dollars without the TIF. He further explained that the reason the cost of services is greater without the TIF is because current zoning allows more totaI units than the proposed zoning with the TIF. He noted)that the estimated cost of services includes the presumption of total buildout with the TIF and without the TIF. Mr. Palmer stated that the $21 million referenced by Mi. Stein as revenue generated into the General Fund is in addition to the $4.6 million which goes into the Increment Fund. Mr. Palmer explained the primary differences with the TIF District and without the TIF District are a lesser cost of services with the TF, fewer dwelling units with higher vaIues with the TIF because of the executive housing planned, and higher sales tax estimates with the TIF because of the additional business development. Mr. Palmer stated that there are 129 homes planned with an estimated value of $250,000.00, or more, as part of the T E District, and there are no homes of this value planned without the TIF. Mr. Palmer confirmed that total revenues to the City with the TIF District will be $21.0 million and total revenues to the City without the T E are estimated at $16.8 million. The amount the City will pay into the TIF Fund is $4.6 million in current dollars and $8.964 million, including interest, over the life of the 20-year TIF.

Mr. Palmer explained that the City will receive $50,000.00 annually for administration of the TIF Program. The fist monies taken from the TIF Fund will be those reimbursed to the City as administrative fees. Mr. Palmer outlined private sector investing for public improvements which will be done by the developer. He stated that $500,000.00 will be invested by the developer in 1999 as Phase I. In the year 2000, the deveIoper will invest $1.7 million and will conclude thoroughfare improvements at a cost of $2.2 million in the year 2001. He further stated that infrastructure investments in the amount of $800,000.00 are planned in the year 2000 and $600,000.00 in 2001. Public park development for the year 2000 is estimated at $500,000.00 and in 2001 another $500,000.00 wiU be spent by the developer. The golf course development will begin in 1999 in conjunction with thoroughfare development and other ground work will be approximately $500,000.00. In the years 2000 and 2001, the main section of the golf course will be developed in the amount of $4 million each year. Executive housing, which includes homes estimated at $25 0,000.00, is scheduled for construction beginning with fifteen units in 2001 vdued at $300,000.00 per unit and twenty units vdued at $250,000.00 per unit. In the year 2002 when completion of the golf course is projected, a total of twenty-five units will be constructed vdued at $300,000.00 per unit and sixteen units valued at $350,000.00. In the year 2003, a total of t w - f i v e units will be buiIt at $325,000.00 per unit and in 2004, eighteen units will be built at a value of $350,000.00 per unit. Mr. Palmer stated that Phase I of the public improvements will begin in 1999 and the years 2000 and 2001 represent Phase II. The original TIF proposal dso included a Phase Ill which represented the M-20 interchange. Phase UI was eliminated because there are no changes to the proposed zoning on the southern tract; however, the TIF District boundaries do include the southern tract.

Mr. Alpert explained that the total investment for the infrastructure and the northern tract of Falcon's Lair (Phases I and II) is approximately $64 million and


of that amount, approximately $15.3 million wiH be reimbursed through the TF. Mr. Alpert stated that the original TIF application included potentid reimbursements for infrastructure development near the proposed SH 190 interchange at Lawson Road in the southern tract. He explained that he would work with the City in an attempt to get the Texas Department of Transportation to speed up the schedule for the SH 190 project.

I Mr. Alpert further stated that as a way to reduce the City's participation in the original TIF application, staff suggested that the inhistructure improvements in the southern tract be eliminated from the TF plan since the SH 190 project is speculative at this time. The southern tract remains part of the TIF boundary so that the TF Board of Directors, at the direction of the City Council, may elect to add infrastructure reimbursement to the TIF District to expand development to the southern tract if the northern tract is seen to be successful. Mr. Alpert stated that the southern tract witI be included in the fill plan along with the northern tract and will not be developed utilizing a levee system. Mr. Alpert further stated that the method in which the Falcon's Lair Utility and Reclamation District was established will not allow the district to tax residents. Mr. Alpert emphasized that if the Council decides to deny the TIF District for Falcon's Lair, he will proceed with a quality development under the existing zoning.

Mr. Alpert explained that the present design of the golf course along the southeast corner of the property extends onto a small piece of City property. He requested a land swap with the City; however, if it is not the desire of the City to participate in a land swap, the golf course can be redesigned to move the holes to property owned by the developer. In addition to a small section of the golf course encroaching on City property, a road is designed which also encroaches on City property. The possible

I land swap should be considered early in the development process in order for the deveIoper to address revisions to the design ifrequired.

The following citizens expressed opposition to the proposed zoning amendment and Tax Increment Finance District: Vemie Erwin, 2009 Potter; Bruce Bishop, 6422 Los Altos; Jimmy Culver, 3233 Point East; Gene Burks, 4308 Oleander; and George Venner, Sr., 612 Parkhaven. Len Gibbens, 4 159 Manorview, did not speak but registered opposition by card to the proposed zoning amendment and TF District. The concerns expressed included building homes near the sewer treatment plant, excluding the proposed commercial development on the southern tract &om the TIT development plan, aIIowing development near the airport that may jeopardize future airport expansion, and the City participating in a residential TIF.

No others appeared regarding the proposed zoning change. Mayor Anderson declared the public hearing closed.

Ted Baron, City Manager stated that without approval of a TIF District and the revised zoning, a $15.35 million shortfall is projected between taxes generated and service costs over the 20-year period. The shortfdl would be addressed each year during the budget process.

I

Minutes of reguIar City Council Meeting held December 7,1998 00 125

I Mr. Whitworth made the foIlowing comments: "First thing I would like to do is thank the strtffand the applicant for the time they have spent on this issue, I will start by saying that, as far as the zoning case goes -- the pure zoning portion of what has been presented -- I like it. However, I do not think that the taxpayers should have to pay for it or buy the zoning. And the fist word that comes to my mind is precedence. When a developer or builder comes in on a tract of land that has minimum zoning of 1500 square feet and we're pushing for 1800 or 2000 square feet, and that deveIoper says give me a TIF and build my streets or reimburse me for my streets and alleys and we'll go ahead and give you the higher square footages. TFs in residential districts scare me to death as far as precedence goes. The Lucas tract is sitting on the sidelines watching this case to see what we do. Secondly, I'm wondering what the taxpayers are wanting. Are they wanting the City to fund golf courses? I wouId love to see a high-end golf course in Mesquite as much as anybody, but I wonder if the citizens in Mesquite had this in a ballot provision, would they vote it in? I think that they would feel that we should focus our monies on building streets and trying to do all we can do to eIiminate the increasing traffic congestion that is occurring in Creek Crossing today, not to mention Town East Mall and the ability to get in and out of that retail district. I think that's where the taxpayers would tell me that they think it would be more prudent for us to spend our tax dollars. There have been a lot of speakers in the pubIic hearing that spent many hours, days, weeks, and months on the case back in 1982 to 1987 and I commend them for the

I efforts that they have put into the approval of the initial zoning because 1 think it is good. I think what has been presented to us today is something very similar, a remake of that plan so to speak, except we're being asked to pay for it. Nowhere in the initial version was City funds being expended to build the golf course or to build a street or whatever so I don't see why the first version couldn't still happen and be something that we could be just as proud of as what has been presented on the proposed zoning case. The next thing I would like to mention is the TIF and one of my problems has been getting some consistent information and something that doesn't change every time I turn around to pick up my packet to study again. We had a Work Session that lasted several hours where we dealt with the TIF funds of $15 plus million and that number has been discussed as the dollars we're dealing with. Friday night, I get a memo stating that there is 6.5% interest that will be tacked onto this. We're not talking about $15 million, we're talking about $30 plus million and this information comes on Friday before we are asked to make a decision of this magnitude on Monday. If we are a planning body trying to pIan where we're going to build executive housing and larger square foot homes, I certainly would not plan this area next to a sewer plant and one that has the capability of expansion. What I have a fear of is -- DeveIoper Z comes in that has purchased this executive housing tract and he says I can't build 3500 square feet because it's next to a sewer plant. If you want this tract developed, you're going to have to give me 2000 or 1800 square feet or it is not going to happen. I don't think it is fair to put a future Council in a position of having to downzone property to see Falcon's Lair ultimately developed that could or would change the numbers that have been discussed today. There is no guarantee that the picture won't change, two years or five years down the road. Finally, I will say, not once has this been presented to me as a decision that I'm


having to make for the City that is a $15 million decision or whatever the number is. This has been presented as a zoning case. If staff had called and said, we've got an agenda item that's a $15 million item that we have got to address, then you had better believe that I would have sat down with s t a E and said, that's a lot of money and why don't we hire a consultant. I respect our staff and Mr. Stein and their abilities to run numbers and present cases; however, I think that this is something that we have done many times in

I the past where we have dealt with issues of this magnitude and we hired a consultant to help us analyze these numbers that are being dealt with in a TIT. My personal opinion is that these numbers are very subjective and we should, if we want to move forward, hire an outside consultant to review these numbers so that we don't have concerns later on regarding whether they are correct. This has never been presented to me as a $15 million hickey to the City. Had it been presented to me that way, I certainty would have stopped early on and taken a different direction. And hdIy, I will say that I am not in favor of the TIF and have all the confidence in the world that the applicant will build a quality project as he has a tract record of doing."

Ms. Lochhead cited information from a brochure that was circulated for the first Falcon's Lair development that proposed a high quality development with a golf course designed by Robert Trent Jones. She stated that she does not believe a TE District in a residential area is how citizens want tax dollars spent and made the following comments. "First of all, let me thank staff for the analysis of the cost of services versus revenues and other related data in regard to the Falcon's Lair TIF oveniew. They are to be commended for their attempt to work with the developer for a better level of deveIopment and enhancement of Falcon's Lair. The City of Mesquite, however, seems to have a sad record of allowing Iess than what might have been the case later on, zoning- wise, and essentially, as a result there is now very little land leR to zone before the City is

I fully developed. It should be acknowledged that development does not come without profits to all parties involved. In the City's case, it has all too often come for less, not more, and at the added expense of new services and maintenance of inhstructure and roads. Services cost money. More times than not, the City has given in or folded to development which offered too little, if anything, toward the resuItant expenses of fire, police, sanitation, code, etc. So much so that our only strong suit is sales tax, certainly not our property tax base, which is insufficient to provide these needs without an unbelievably high tax rate. With all this said, there are some concerns I have that need to be addressed further before I could ever vote for the revised zoning. First, the original plan on Falcon's Lair has been in place now since the early 1980's (1 5 or I6 years) and still nothing has been built. Wouldn't it seem apparent this particuIar project and zoning will never be built? It would appear we are bargaining with impossibility, against ourselves. If we truly are going to look at the potential in the Falcon's Lair development, we need to look at this objectively and what is in the best interest of the City of Mesquite and its citizens, not the lesser of two evils. Let me suggest for this Council to hold the developer's feet to the fie, so to s p d q on the original zoning with a levee. Then, and only then, would he be forced to respond with a number of suggestions which would either make it feasible, or indeed delay it untiI the right time comes along, as far as what I


is developed on this land. Let me ask the members of the Council, do we want more

I multifamily housing than we have now? Do we redy have a market for 600 townhouses, much less f ,269? Does anyone who has ever visited what is truly executive housing in the Plano area consider 1,800 to 3,500 square feet to be a house for CEO's? I think not. Are these bigger homes than some -- Yes. Executive -- not hardly. Are people buying homes of this size £lying corporate aircraft with employees, businesses, and interest in relocation? The developer wants to build a golf course in the floodplain. Why? Does anyone here think the City should make concessions that impact the public as a whole for a golf course to benefit a few in the floodplain? I doubt it. When it is washed away, who do you think d l pay the repair bills, rather than have a disaster on our hands? I ask these things because, of all the concerns I hear from citizens which are priorities, these aforementioned are not brought up often. Bigger homes? Yes. At the expense of the public? No. I feel this alternately proposed zoning to be insufficient to be worth a TIF and subsequent Iosses to the City. There would need to be more benefit to the City from this development, as well as any other in the future, before we go down a road which had led to the predicament we now live with, namely, inadequate tax base. Are we to give similar TIT Districts to the remainder of the property in southeast Mesquite just to have something not as bad as it would be if we didn't subsidize the developer in some fashion? What about the Lucas tract? Don't you think they will want a TIF? I think we can all come out ahead if we put our minds to it. Without more of an overall plan of enhancement and policy, I would have to step back fi-om approval of this item on the agenda. The City doesn't need to build streets and other amenities by giving up our tax revenue, without substantial enhancement to our economy. I request the City Secretary include these comments as a part of open records and the minutes of today's agenda."

Mr. Paschal commented: "Staff and Council have worked hard on the proposed zoning amendment and have seen a Iot of numbers. The existing zoning compared to the proposed zoning will d o w an increase in the number of houses that can be built. Under existing zoning, minimum residential dwelling sizes dowed are 1,200, 1,3 00, and 1,8 00 square feet; however, under the proposed zoning, minimum residential dwelling sizes are 1,800 square feet and the majority of homes wiU be over 2,000 square feet. Existing zoning will allow the construction of 477 zero lot h e homes and no zero lot line homes d be built under the proposed zoning. The quantity of townhouses is reduced by 50% in the proposed zoning versus current zoning. The square footage for multifamily units is increased with the proposed zoning change. Current zoning provides no specifications for the golf course; however, the proposed zoning change includes specific guidelines for the development of a championship golf course. Design standaxds on current zoning are not spec& while the proposed zoning request provides very specific and detailed deed restrictions. Under current zoning, there are incompatible uses in the runway protection zone and the 65 Ldn contour h e including residential while the proposed zoning change has no incompatible uses. Without the T E District, the cost of services is estimated to be $36 million; however, with the TIF District, the cost of services

I is estimated to be $25 million. And, without the TI3 District, revenues are estimated to be $16.8 rnilIion versus $2 1.1 million with the TIF District. The cost for obtaining the airport


protection zone, although we may have to wait a few years to be reimbursed by the FAA, is $1.5 million which will require raising taxes 3.5 cents, or $4 million if we want to purchase the property within the noise contour Sine so we can assure continued airport development and FA4 reimbursement at a cost of an additional 10 cents to the tax rate, while the proposed zoning eliminates these purchases. On paper, all the numbers indicate the issue should be a 'no brainer.' I'm r d y disappointed that we have to make this

I decision. I wish that the existing zoning had been more s p e d c and addressed many of these problems. We shouldntt have to address the airport issues now; we knew about it after it changed hands and I wish that it had been addressed during the transition. If some of these issues had been resolved then, there would not be the pressure to agree to the proposed zoning and TIF District. Unfortunately, it seems like this project has changed day after day; every time we look at it, it's diierent. As Mr. Bishop indicated, it would be great ifwe could include the zoning on the southern tract. The early TIF proposal was for $28.8 d o n and everyone was aghast at that. Now it has been pared down to $15.0 million. It is the same request, it's just been pared down to the northern tract and the southern tract will be included eventually. Maybe the southern tract is a better deal and maybe it should be included now. To summarize, it seems like rve been on both sides of the coin. I hate to make the decision, but I am charged with being astute to our taxpayers, and i f1 have any uncertainties about where my decision will lead, then I probably need to make the most conservative decision that will bring no harm to our citizens. Unfortunately, with the current zoning, I'm not sure that's the case. Right now I don't believe 1 could be in favor of the TIF."

Mr. Whitworth asked Mr. Hanz if current zoning requires noise attenuation features. Mr. Hanz explained that current zoning allows single family residential and townhouses within the 65 Ldn line; however, soundproohg is required.

I Mr. Heiman made the following comments: "The minimum zoning

under the proposed zoning amendment is the maximum under the current zoning. You can tell by the zealous way I went aRer the numbers that evidently no one really understood that there was a $15 million decision to be made, or maybe at least until today, I appeared to be the only one concerned about the great amount of money proposed for this project. I will remain concerned about that. It is a great deal of money. If we were to turn this down, how soon would it be before we have to put out that $1.5 million for acquisition of the runway protection zone and where would we come up with that money? Those are things that bother me tremendousIy. Talk about the City not getting its money back -- the City will not invest a single dime into this. Talk about a conservative program -- how can you get more conservative than getting a good investment for absolutely no investment? The only way the developer gets his money back is if he does what he says he will do. So, I have to really look seriously at the argument on that. Everybody in the audience h a spoken against this. I'm going to reserve my right to disagree with them on this very critical issue. In my position as a business owner, I am usually forced to make decisions based on dollars and cents and estimates and assumptions that people bring me and sometimes they're wrong. But, most of the time I put together a pretty good team in I

Minutes of regular City CounciI Meeting held December 7,1998 0 0 1 2 3

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my business and I believe the City has put together a pretty good team also. I've been very hard pressed to argue with them on issues in the past. If they tell me that they've discovered today, as opposed to discovered previously, that this is a $15.3 5 million decision -- if they neglected to tell me that before but told me that today, I still have to respect their opinion on what they're telling me today. And, based on that, I believe it would indeed be a 'no brainer' to go with the numbers that seem to appear to favor a TIF, if that's what my City Manager is still telling me."

Mr. Barron stated that staff believes the financial projections presented are accurate.

Mr. F o b provided the following comments: " I agree that this zoning amendment has been a tough one and was probably a tough one back in the 1980's when it was started. It's been very difficult. I've tried to sit down and think of what may or may not be good for the City in this situation. It becomes pretty obvious when I invest a considerable amount of money in an excellent stafF and they do their homework and come back and tell me that if I leave things done and don't touch anything, it's going to cost me money. But, if I do something over here, I at least can't loose any money on it, and that the worst thing I can do is break even on it. I can argue a lot of these points. A lot of the things brought up don't have anything to do with the project we're talking about

I today. To shorten my comments, J am going to have to support st& and support the zoning and TIF request."

Mr. Atexander commented, as follows: "This has been the most difficult zoning case I have had to review since being on the CounciI and absoIuteIy this has a big impact. It's been said that current zoning was considered excellent zoning when it was put in place and certainly some of the people that were involved in it were wiser people than I am and I respect their judgment. I'm sure they spent more time reviewing the original Falcon's Lair proposal than we have. I certainly could make a case for both sides and I have made a case for both sides in the last couple of months as I've talked to merent people who have called me on the phone and expressed how strongly they fee1 regarding this issue. I have tried to tfiink about what is best for the City and I've always wanted to upgrade zoning whenever I had the chance. I think that is part of the job we do -- to negotiate the best deal for the citizens of our city and the most benefits. That is certainly what we have an opportunity to do here. I've tried to decide if the offer on the table is worth the dollars the City will be required to invest. Today it's up to $15 million. One of the things that concerns me about the number is that it has changed. I know how a TIT District works and it is a good proposition. The other thing I had to think about is, as a business person, if I was asked to be a partner in this project and asked to invest, would I invest and would I be comfortable in investing with the amount of control I would have? The third thing I would take a look at is the City's role in development and where does it

I start and where does it stop? Does the City have a role in development in residential? I served on the Executive Task Force with Ms. Lochhead and we heard fiom the people om Stonebridge Ranch and we toured that and some other very nice additions and

Minutes of reguIar City Council Meeting held December 7,1998 - 1

received some good advice from the peopIe who manage and developed those properties as to what it takes and one of the things they pointed out was golf courses and extra menities. I've reaJJy had a difficult time. Maybe as Mr. Heiman said, we've thought too long and too hard on it. The longer I think, the more reasons I can pick for both sides. So, it's been an extremely difficult issue. But, after looking at everything, I wouId like to see the zoning upgraded. I would like to see the minimum house sizes go up and I would

I like to see the number of houses built reduced in number. But, I don't think we're getting enough of a return for me to vote for my investment in a TIF District right now. So, I'm going to have to vote no on this issue."

Mayor Anderson stated, "This City, and a lot of people who are sitting in the audience today, have had a goal for a number of years to see a premier quality development built in our community. This Council had an Executive Housing Task Force that Mr. Alexander and Ms. Lochhead served on which viewed a lot of projects such as Stonebriar. What hasn't been talked about today are all the other public amenities that are being put in place in this project which are unlike any other that has been built in this city before, induding wider streets, curving linear sidewalks, and extensive heavy landscaping. One of the best parts about this is that we never have to maintain it. The entry features, the medians, the landscaping, the public pIaces, all that will be maintained by the homeowners association. You Iook at what it takes for executive housing and you look at some of the communities we border, particularly in Garland, and the money they have spent at Firewheel Development in building two and now a third golf course and the custom homes that are being placed around it at a cost of 100% to the taxpayers and a risk to the taxpayers. The City of Rowlett is in the process of building a major golf course development community on about 500 acres and sold bonds to have that golf course community developed. Today, we have an application

I before us that in essence does not cost us a dime. The deveIoper has to put all the improvements in pIace to our specifications. Once those improvements are in place and that project becomes successfbl, only then do we contribute to this development. If it's not successful, then it's the developer's risk and not a risk to the City. For the Tealwood Golf Course Development Project, the City would have taken all the risk. In fact, we were investing more money in that project and putting the money up fiont, than what the City is participating in this project. I think it answers a lot of problems. We've spent a lot of time in discussions regarding the w o r t over the last few months. We've also heard that the airport is an issue with the current zoning. This is an opportunity, if we realIy care about the airport, to soIve that probIem. This developer is bringing it to us and we are not having to purchase it -- by realigning his golf course development around the clear zone at no .expense to us and meeting all of the requirements of the FAA within the 65 Ldn line, which may move between now and September, at no expense to us. This is an opportunity. It is a difficult decision. Nobody likes tax participation programs. Nobody likes tax abatements. We didn't like it the fist time we heard it when it was presented to us at $28 million. Yes, the southern tract is the money tract. That's where we as the City are going to benefit. But, the south tract cannot develop until the residentid tract develops to justify retail and commercial services dong M-20 because if residential

- Q 0 1 3 1 Minutes of regular City Council Meeting held December 7,1998

development does not take place in that corridor dong Lawson Road in Falcon's Lair, then there will never be a need for retail and commercial development along M-20. I think it's important for us to Iook at that. The entire property is included in the TIF District. We can always come back and Iook at it later. It would be very easy for me to stand up here today and say that four people have already spoken against this and so am I, but I think this is a tremendous opportunity for this community. There is no easy decision in this matter. But, it's an opportunity that we'll either take or well loose."

Mr. Beiman moved to postpone a decision on Item 20A-F to d o w staff to review inclusion of the southern sector in the proposed zoning applicatiodTlF Plan. Motion was seconded by Mr. Folks.

Mr. Paschal stated that he understood that the southern tract was already included in the TIF District and asked what direction the Council is requesting staff to take. Mayor Anderson cladied that the southern tract is included in the boundaries of the TIF District but no improvements were proposed as part of the TIT Plan.

Mr. Heirnan d d e d the motion to postpone any decision on Item 20A-F to allow staff time to review the application and work with the applicant for possibIe zoning changes or inclusion of the southern tract into the TJF for public improvements.

Mr. Whitworth asked if the Council was interested in hiring a consultant to review staffs numbers. Mr. Heiman stated that he would support engaging a consultant to review the proposed TF numbers. Mr. Folks confirmed that the second still stands.

Mr. Shupe stated that a timing issue may be created if a postponement is approved. Ifthe TE District is created in 1998, it relates back to a value of January and becomes effective January 1, 1999. If the TIF is created some time in calendar year 1999, it will have an effective date of January 1, 2000. He further stated that his understanding is that MISD wdI have to take action before the end of 1998 because there may be s imcant changes in legislation for TFs which may have a substantial hancial impact on school districts.

Mayor Anderson stated that the Council is aware of the timing issue; however, the issue must be addressed at a City level. This is the largest zoning case that has been heard by the present City Council. Unless the motion and the second are withdrawn, consideration of the zoning requesflIF District will be postponed. There will be a second meeting in December and another opportunity to hear this. That is assuming that the applicant is willing to work with staff to resolve the issues and that a consultant can be found to review these numbers and provide the results for the next Council meeting.

Minutes of regular City Council Meeting heId December 7,1998

M?. Hanz stated that the south tract cannot be incorporated into the zoning request because there is not time to meet the requirement to reissue notices and to hold public hearings.

I Mr. Heiman withdrew the motion to postpone and suggested that

Council go ahead and take a vote on the application. Mr. Folks withdrew the second to the motion.

Mr. Whitworth moved to deny the ordinance creating the Falcon's Lair Tax Increment Finance Reinvestment Zone No. 3 and establishing a Falcon's Lair Tax Increment Finance Reinvestment Zone No. 3 Board of Directors. Motion was seconded by Ms. Lochhead. On call for a vote on the motion, the following votes were cast:

Ayes: Whitworth, Lochhead, Paschall, AIexander Nays: Anderson, Folks, Heiman,

Motion carried.

Ms. Lochhead stated that she understands that the applicant does not wish to proceed with the proposed zoning amendment if the TIF District is denied. Mayor Anderson c l d e d that the applicant's original zoning request was subject to approval of the TIF District and that it would be appropriate for a motion to deny the zoning application at this time.

Ms. Lochhead moved to deny Application No. 569-3 submitted by Falcon's Lair, LP. Motion died for lack of a second.

Mr. Alpert requested codinnation that the TIF District has been denied. He stated that the Falcon's Lair Utility and Reclamation has sold bonds and will proceed with the development of the FaIcon's Lair project. He requested that the City Council reconsider the vote to deny the TIF District and that a motion be introduced for postponement to allow the Falcon's Lair team time to address the issues discussed. He pointed out that MISD may vote against the TIF because the City has not taken action at this time. Be stated that the Falcon's Lair team thought action today would provide a preliminary approval, and the applicant would have severaI weeks to work out the details. He expressed awareness that there were a number of issues IeR inconclusive. If the postponement is not granted, he requested withdrawal of the zoning request. He expIained that bond holders had been promised that a quality project wouId be built even if the TIF was not approved. He pledged that, if Council would reconsider the denial and move to postpone, his team will work closely with City staff over the next two weeks to answer and overcome any of the specific objections. He explained that he understood that the southern tract could be addressed Iater by the TIF Board. I

Minutes of regular City Council Meeting held December 7,1998 ~ 0 1 7 3

I Mayor Anderson asked Mr. Whitworth and Ms. Lochhead if either would consider making a motion to postpone consideration of the Falcon's Lair TIF District. Mr. Whitworth and Ms. Lochhead declined making a motion to this effect.

Mr. Hanz explained that one of the four who voted for denial of the TIF District and proposed zoning amendment must make the motion to reconsider.

Mr. Paschall stated that he is not pleased with the current zoning and would like to see something better. He noted that the numbers show that a decision to deny the TIF District will cost the City $15 million. He further stated that he was elected to give his time to decisions like these and had no problem devoting more time to reviewing the Falcon's Lair deveIopment to try and make it work. Mr. Paschall moved to reconsider the vote. Motion was seconded by Mr. Heiman. On call for a vote on the motion, the following votes were cast:

Ayes: Paschdl,- Heiman, Anderson, Folks Nays: AIexander, Whitworth, Lochhead

Motion canied. Mr. Heiman moved to postpone dl items pertaining to the Falcon's

I Lair zoning request and TIF District until the next meeting to allow s taE more time to review the numbers and to authorize the City Manager to retain the services of a consultant to review the hancial projections contained in the proposal. Motion was seconded by Mr. Paschall.

B.J. Smith, City Attorney, stated that if Council wishes to revisit the zoning request, notices have to be reissued and that will not allow the item to be reconsidered in December; however, if the intent is to postpone to hear an enhanced presentation or receive additional information, a postponement until the next meeting is appropriate.

Mayor Anderson stated that he understood that the applicant is asking for a two-week postponement to address concerns raised at the public hearing, but not to make changes to the zoning request. He Mher stated that with a project this large, it is reasonable to allow a two-week postponement before reconsidering the request to create a TF District.

Mr. Alpert explained that the two-week postponement will allow the opportunity to address a number of the questions and issues relating to the TIF District but the zoning request will remain as presented.

001 3 4 Minutes of regular City Council Meeting held December 7,1998

On call for a vote on the motion, the following votes were cast:

Ayes: Paschall, Heiman, Anderson, Folks, AIexander Nays: Lochhead, Whitworth

I Motion carried.

A brief recess was taken.

APPOINTMENTS TO BOARDS AND COMMISSIONS*

21. APPOINTMENT OF FOUR REGULAR MEMBERS TO THE MUNICIPAL LIBRARY ADVISORY BOARD FOR TERMS TO EXPIRE DECEMBER 4.2000.

Mr. PaschalI moved to reappoint Bill Campbell, Mary Lou Faling and Jeff Stagner and to appoint Kara Abston as regular members of the Municipal Library Advisory Board for terms to expire December 4, 2000. Motion was seconded by Mr. Heiman and approved unanimously.

22. APPOINTMENT OF FOUR MEMBERS TO THE MESQUITE HOUSING BOARD FOR TERMS TO EXPIRE DECEMBER 3.1999.

Ms. Lochhead moved to reappoint Carlisle Barker, Robert Murdock, Randy Murray and Stan Picket as members of the Mesquite Housing Board for terms to expire December 3, 1999. Motion was seconded by Mr. Folks and approved

I unanimously.

23. APPOTNTMENT OF THREE MEMBERS TO THE FIRE CODE BOARD OF APPEALS FOR TERMS TO EXPERE DECEMBER 31, 2000, AND TWO MEMBERS FOR TERMS TO EXETRE DECEMBER 31,2001.

Mr. Heiman moved to appoint Paul Lewis, Robert Ashmore and Arlan Hetterly to the Fire Code Board of Appeals for terns to expire December 3 1 , 2000, and to appoint Jerry Knoerr and Ron H d for terms to expire December 3 1, 2001. Motion was seconded by Mr. Alexander and approved unanimously.

24. APPOTNTMENT OF TWO REGULAR MEMBERS TO THE KEEP MESQUITE BEAUTIFUL. INC., BOARD OF DIRECTORS FOR TERMS TO EXPIRE SEPTEMBER 30,2001.

Mr. AIexander moved to appoint Cora Dugan and Renee Kowalski as reguIar members of the Keep Mesquite Beautiful, Inc., Board of Directors for terms to I

Minutes of regular City Council ~ e e t i n g held December 7,1998

I expire September 30, 2001. Motion was seconded by Ms. Lochhead arid approved unanimously.

25. APPOINTMENT OF SIX MEMBERS TO THE FALCON'S LAIR TAX INCREMENT FINANCE REINVESTMENT ZONE NO. 3 BOARD OF DIRECTORS - POSTPONED.

Mr. Folks moved to postpone appointment of six members to the Falcon's Lair Tax Increment Finance Reinvestment Zone No. 3 Board of Directors. Motion was seconded by Mr. Alexander and approved unanimously.

EXECUTnsE SESSION - CITY COUNCIL CONFERENa ROOM - 8:00 P.M.

Mayor Anderson announced that the City Council would meet in Executive Session pursuant to Section 551.072 of the Texas Government Code to consider purchase, exchange, lease or vaIue of red property (acquisition of property at 500 South Galloway Avenue); whereupon the City Council proceeded to meet in the City Council Conference Room. After the closed meeting ended at 8:20 p.m., the City Council reconvened in Open Session.

Mr. Heiman moved to ratify a contract with Nora Bonita Whitehead for the

I acquisition of property at 500 South Galloway Avenue. Motion was seconded by Mr. Foks and approved unanimously.

Mr. Alexander moved to adjourn the meeting. Motion was seconded by Mr. Paschal1 and approved unanimously. The meeting adjourned at 8:20 p.m.

Ellen Williams City Secretary Mayor

and held work - mesquiteapps.cityofmesquite.com/city_secweb/records/councilweb/b...minutes of work...

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