City Manager Aron Kulhavy and Director of Development Services will present an overview of Public Improvement Districts (PIDs), Municipal Utility Districts (MUDs) and Development Agreements at 5 p.m. Tuesday, Dec. 19, at the Huntsville Public Library, 1219 13th Street.
Council will consider several action items on the consent agenda, including an ordinance to amend the Schedule of Fees and Charges, an ordinance to amend the approved budget, cancel the Jan. 2 meeting, approve the purchase in-car video systems for police vehicles, consider awarding a contract for storm sewer line replacement construction, and renewal of an industrial user discharge permit.
The budget amendment is for $25,000 for a Downtown Strategic Assessment, to be performed by a third party consultant. The proposed scope of services includes a custom deliverable identify existing opportunities in policy and administration, design, tourism and promotion, and economic vitality that can be realistically implemented in five (5) years and an implementation matrix. The phases of the assessment include discovery, in-market strategic assessment workshops, and a custom market analysis. This service and cost were not included in the FY 2023 — 2024 Budget process. The cost should be accounted for as operational costs of the Economic Development Department in the General Fund. Funds are available in an Economic Development CIP Fund with a Fund Balance amount of roughly $756,000 presently. The Economic Development CIP Fund will have a $731,000 Fund Balance after this Budget Amendment, assuming the Budget Amendment is approved.
On the statutory agenda, Council will hear a first amendment, or change, to the Reserves of Huntsville PID development agreement; a resolution consenting to the creation of MUD to be known as Huntsville Municipal District No. 2; a development agreement with Forestar (USA) Real Estate Group, Inc. for 226.5 acres for a single family master planned community; and another development agreement with Watson-Cordone Development Group for an extension of Pine Shades.
The Forestar Group is looking to develop a single-family master-planned community in the city’s Extra Territorial Jurisdiction (ETJ), approximately 1.5 miles south of the city limits, near the intersection of FM 1374 and Robinson Creek Road.
However, the developer represents that the feasibility of the development of the tract requires that the City consent to the creation of a municipal utility district that will enable the financing of the various water, sewer, and drainage facilities, roads, and park and recreational facilities that will serve the Tract, an estimated $31,625,970 investment. This resolution is the next step in the creation of the MUD and gives the developer consent to move forward with its creation. There is no financial impact to the city at this time, according to Byal.
Earlier this year, Forestar advised the city of their intent to connect to the City of Huntsville sanitary sewer system and construct a water line extension necessary to serve the development with city water. The developer agrees to maintain the ETJ status of the property, develop the necessary infrastructure in accordance with the adopted Development Code and design standards, and construct the off-site waterline to the development from the existing infrastructure location with sufficient capacity, Byal reported. The City ensures that it will reserve utility capacity for the development and support the creation of the MUD.
Byal added there is no direct financial impact with the approval of the development agreement. The agreement will allow for the development of the property in question from which the City will generate water and wastewater revenue.
The City Secretary Kristy Doll has also included the adoption of the Charter Amendments approved in the election into a singular form through an ordinance adoption.
Finally, City Council will adjourn to executive session to discuss City Manager Kulhavy, as well as legal advice on the case against Architects Design Group/ADG Inc. and a first attempt of a property owner to use Senate Bill 2038 to be released from the City of Huntsville ETJ, with over 2,029 acres under consideration.
