Effective October 8, 2019 the City, HM Parkside LP and HM CR 176-2243, LP entered into a Development Agreement pertaining to the Parkside on the River Subdivision (the “Original Agreement”). The Original Agreement was amended by the “First Amendment to and Partial Assignment of Development Agreement Parkside on the River Subdivision" (the “First Amendment”) dated effective December 8, 2020.

This item is a Public Hearing and consideration of an Ordinance that would adopt the “Second Amendment Development Agreement Parkside on the River” (“Second Amendment”), and further amend the Original Agreement, as amended by the First Amendment. Most of the revisions address the addition of recently acquired land to the project and updates addressing actions completed to date. Another significant revision relates to unanticipated delays and complications associated with acquisition of a required off-site drainage easement. The significant elements of the Second Amendment are summarized below:

1.  Adds two tracts of land acquired by an affiliate of HM Parkside, LP, HM GPII, LP, to the Development Agreement – the 314-Acre Tract and the 47-Acre Tract (collectively, the “GPII Property”) – and adds HM-GP II as a party to the Development Agreement.

The land subject to the Development Agreement is a 1,210-acre tract of land (+/-) situated south of the Water Oak Subdivision and north of FM 2243, slightly straddling the South Fork San Gabriel River (the Original Land”).  The affiliate of HM Parkside LP, HM GPII, LP, acquired two tracts of land adjacent to the Original Land. The Second Amendment adds those two tracts of land to the Development Agreement and adds the owner of those tracts as parties to the Development Agreement. The locations of the 314-Acre Tract and the 47-Acre Tract are generally shown on Attachment 1 to this Coversheet. The Second Amendment updates the several exhibits to show the addition of the GPII Property into the project.

2.  Adds Parkland and River Trail Segment on the GPII Property.

The Second Amendment requires construction of a continuation of the San Gabriel River Regional Trail across the newly added GPII Property, establishes a deadline for completing the trail on or before January 30, 2030, and allows the City to accelerate that deadline under certain circumstances (basically, if or when the Bridge has been completed and the regional trail is completed by the City or others from the northwesternmost boundary of the GP II Property to Garey Park). The Second Amendment also requires dedication of 75 acres of additional parkland out of the GP II Property to be conveyed to the City no later than 60 days after the later of (i) written request of the City and (ii) completion of GPII River Trail. The Open Space Plan exhibit is updated accordingly. 

3. Establishes roadway standards for Parkway C on the GP II Property; addresses Lorena Lane connection exception

The standards for Parkway C are the same as for Parkway A and Parkway B, creating consistency in the major roadway system throughout the project.  The Second Amendment also grants an exception to the general requirement to have internal roadways connect with those in adjacent subdivisions by not requiring a connection to Lorena Lane due to topographical constraints associated with making that connection.

4. Adds a third HOA Park on the West Tract in light of addition of the GPII Property.

The standards for the third HOA Park are the same as for the original two HOA Parks (at least 3 acres in size, each with an amenity center and recreational improvements, all to be maintained by an HOA), creating consistency in the private parkland scheme throughout the project. The Open Space Plan exhibit is updated accordingly.

5. Addresses Impact Fees for the GPII Property.

Water and wastewater impact fees for the Original Land were frozen at the levels in effect at the time a development agreement first applied to the land.  However, the Second Amendment provides that the impact fees then in effect at the time of assessment apply to the GPII Property. The Second Amendment also addresses the possibility that a lot may “straddle” the Original Land and the GP II Property and provides a means of determining impact fees those “Mixed Lots.”   

6. Acknowledges the right to opt into different tree preservation standards that may be adopted in the future. 

Very generally speaking, under current law, in the absence of an agreement otherwise, developers have the right to opt into more favorable (i.e., less restrictive) tree preservation standards adopted by a city after the approval of a development agreement. In this case, HM Parkside LP and its various affiliates are interested in obtaining credit for replacement trees (i.e., replacement of heritage trees) when they plant new trees to satisfy landscaping requirements. The Council has not approved such a scheme, but if it does, the Second Amendment would allow this project to avail itself of that regulatory change.

7. Addresses a delay in obtaining a required off-site drainage easement and allows recordation of a final plat without the required easement in place.

Stormwater management for the bulk of the Original Land was to be accomplished by securing off-site easements from neighboring landowners Gordon Faubion (the “Faubion Easement”) and Texas Crushed Stone (“the “TCS Easement”) in lieu of significant on-site detention. Coincidently, Williamson County also needs the Faubion Easement and the TCS Easement to manage stormwater generated by its recent improvements to CR 176.  In mid-2020, the developer and the County entered into a private agreement whereby the developer agreed to acquire the Faubion Easement and the County agreed to acquire the TCS Easement. The City recently authorized Williamson County MUD NO. 25 to use eminent domain powers to acquire the Faubion Easement, but an agreement was reached before those proceedings concluded. Acquisition of the Faubion Easement is now expected to close on or before May 17, 2021, per written agreement with the landowner. However, the County has not yet acquired the TCS Easement. The developer is ready to record the first final plat for Parkside on the River but has been delayed by the easement negotiations. Because the County has the power of eminent domain and is confident of eventually obtaining the TCS Easement either by use of those powers or through negotiation, the City has been asked to allow the final plat to be recorded before the TCS Easement is in place. Recognizing the risk to the City in doing so, the County has agreed to indemnify the City from third-party claims relating to recordation of the final plat (recordation of the final plat will allow, issuance of building permits, construction activities, and lot and home sales before the TCS Easement is in place). The Second Amendment outlines the unique circumstances of this request and limits the City’s obligation to approve any other final plats – i.e., it is meant to be a “one-plat, one-time deal.” The first page of the affected final plat is attached as Attachment 2 to this Coversheet.

ATTACHMENTS:

1.  Location Map (showing Original Land, 314-Acre Tract, and 47-Acre Tract)

2.  First Final Plat (general location map)

3.  Presentation

4.  Ordinance

5.  Second Amendment to Development Agreement Parkside on the River, including the following exhibits: