Upon request from the property owner, and the fulfillment of the terms and execution of a development agreement and a restrictive covenant, the Planning and Development Department is recommending the disannexation of approximately 195 acres of undeveloped property. The disannexation tract is located just east of Lake Houston in Council District E and is contiguous to the municipal boundary of the City of Houston. This property makes up a portion of the proposed Harris County MUD No. 525 (HC MUD No. 525) and will become a part of the Extraterritorial Jurisdiction (ETJ) of the City of Houston upon disannexation. The remainder of the proposed HC MUD No. 525 is comprised of approximately 266 acres and is already located in the ETJ.
The City Council authorized the execution of a development agreement between the City and Madison/Foley (the Developer) on October 7, 2015 regarding the disannexation tract. This agreement requires that the City disannex the area if the developer takes certain actions, including filing a restrictive covenant in the real property records of Harris County. The Developer has taken those actions.
The 195 acres considered for disannexation, along with the portion of the MUD already located in the ETJ, are proposed to be developed into 1,142 single-family lots and a commercial reserve. The Developer has agreed to convey to the City, 15 acres of undeveloped land at a site within the district for future use as a City of Houston regional wastewater treatment plant.
The Developer has agreed to enter into a Strategic Partnership Agreement (SPA) with the City of Houston once the tract is disannexed. Under that agreement, the City will impose a 1% sales tax within the boundary of HC MUD 525. Once the land is fully developed, the City will also have the option to annex the entire MUD into the full-purpose City boundaries. When the development is complete, the Developer's projections indicate that the future taxable value of the property will be approximately $356,222,660. The Developer agrees to transfer the 15-acre tract to the City and enter into an SPA before the end of 2016.
The Public Works and Engineering Department’s Public Utilities Division has no objection to this release. The disannexation of this area will not impair the City’s ability to annex any other territory in the vicinity, nor will it have a negative impact on revenue to the City given that the area will be included in an SPA upon disannexation. This disannexation will not impair the City of Houston’s current mobility plans.
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Patrick Walsh, P.E.
Director
Planning and Development Department