Developers present plans for subdivision

UNDER DEVELOPMENT — Todd Winters of Engineering Concepts and Design presents plans for the Paloma Trails subdvision to the Decatur City Council Monday. RICHARD GREENE/WCMESSENGER

Developers presented a concept plan along with the outline of a developers agreement for the proposed Paloma Trails subdivision on the east side of Decatur to the city council Monday night.

The council held the first public hearing on the annexation of 157 acres of the 165-acre tract at U.S. 380 and Business U.S. 380. The council received an annexation request for the property of the mixed-use development last month. The council will hold a second hearing and plan to complete the annexation Oct. 24.

The plans presented to the council Monday included 418 lots for single family residences, 22 acres for multi-family and 23 acres for commercial. There is 16 acres of public open spaces, which will be maintained by a homeowners association. The plans also includes a 2.34-acre site on the west side of the development for a future fire station and a 0.67-acre site for a water tower.

“We feel we will deliver a product you will be proud of. It will be one of the first things you see when coming into the city from the east,” said Todd Winters of Engineering Concepts and Design of Wylie, who presented the plans.

“The city staff has been great to work with and helped answer questions and make suggestions.”

The 23 acres of commercial is mostly along U.S. 380 with a small 2.8-acre tract along Business U.S. 380. The developers are planning two main entrances off U.S. 380 with a possible right turn only entrance into one of the commercial lots.

An east-west connector will divide the commercial properties from the residential lots. There are also two minor north-south arterial roads proposed on the border of the property. Improvements are also proposed along Old Denton Road at the south end of the development.

Drew Slone of Winstead Attorneys, who is working with the developers, said they will be working with the city to create a Public Improvement District (PID) to put in the infrastructure for the development — streets, drainage and utilities. Assessments placed on the individual lots and paid by the homeowners would reimburse the developers.

The estimated amount of bonds to be sold is $45.12 million.

Slone pointed out that the residents in the development would be responsible for paying off bonds.

“The bonds would only be paid by the people who live there. The people coming to live there will be actively choosing to take on that debt,” Slone said.

The developer also wants to create a Tax Increment Reinvestment Zone (TIRZ) to use a portion of the ad valorem taxes, up to 65 percent, to offset a portion of the PID assessment.

Rick Rosenberg, managing principal at Development Planning and Financing Group, said the development would create $290 million in taxable value for the city. He said the TIRZ would help lower the tax load on potential home buyers in the development to $2.84 per $100 of valuation and make it more competitive with the market. The estimated home value ranged from $358,760 to $425,000.

Decatur City Manager Nate Mara said the city would be looking to lower the TIRZ participation closer to 50 percent over the 30-year term. “I’d be more comfortable if we reduced the TIRZ amount,” Mara said.

The council approved a professional services agreement. The developer put $10,000 in escrow for professional services to cover city expenses in establishing a PID and tax increment reinvestment zone (TIRZ).

“We are well on our way to using it,” Mara said.

In other business, the council called a public hearing for Nov. 14 on the creation of the PID for the Vista Park development. The council tabled the item at its Sept. 26 meeting.

The requested PID would fund $20 million in infrastructure improvements and the annual maintenance costs of public improvements on the 87.62 acres located northeast of the intersection of West Thompson Street and South Deer Park Road.

The city approved a development agreement and professional services agreement last November with Rockwater Developments LLC for the Vista Park PID. At the time, Vista Park was planned to have approximately 348 single family lots, and the estimated average home price will be $325,000. It was expected to generate approximately $678,600 in annual tax revenue for the city.

The PID will be funded by a flat annual assessment paid by Vista Park homeowners. Normally, homeowners pay it annually as part of their tax bill. All assessments may be paid in full at any time.