STRATEGIC PRIORITY: Economic Development
AGENDA DATE: February 12, 2025
COUNCIL DISTRICT(S): Outside City Limits
DEPARTMENT: Department of Planning and Development
EXECUTIVE: Robin Bentley
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SUBJECT
Title
Authorize the creation of the Willow Ranch Municipal Utility District No. 1 within the City of Dallas’ extraterritorial jurisdiction that would include approximately 140.125 acres in Kaufman County on the east side of FM 740, at Travis Ranch Boulevard - Financing: No cost consideration to the City
Body
BACKGROUND
On September 24, 2024, Ashok Chitiprolu, Chief Executive Member of Forney Development LLC, represented by Victor Cristales with Coats Rose PLLC, owners of approximately 140.125 acres on the east side of FM 740, at Travis Ranch Boulevard in Kaufman County, submitted a petition for consent of the new Willow Ranch Municipal Utility District No. 1 (See the attached request.) The property lies within the City of Dallas’ extraterritorial jurisdiction (ETJ).
A Municipal Utility District (MUD) is a limited purpose government district used as a vehicle for the provision of municipal utility services. The Texas Commission on Environmental Quality (TCEQ) is responsible for the regulation of MUDs. Section 54.016 of the Texas Water Code and Section 42.042 of the Texas Local Government Code require written consent of a city to allow the creation of a MUD within the city’s (ETJ). If consent is not given to the petitioners, the owners may petition the city to provide the services. The city is not required to provide any services. If the city fails to provide the services, the property owners may petition the TCEQ for the request of the MUD and the city’s consent to the request is presumed.
The ETJ is the unincorporated territory contiguous to the corporate boundaries of a municipality. The purpose of the ETJ is to promote and protect the general health, safety, and welfare in areas adjacent to a municipality’s corporate city limits. Other relevant facts regarding the ETJ include:
• Cities may enforce platting regulations and environmental regulations in their ETJ but may not enforce zoning regulations; and
• The ETJ for cities with a population size of 100,000 or more is five miles from the city limits; and
• A city’s ETJ cannot include any area in the existing ETJ of another municipality; and
• A municipality may only annex area within its ETJ.
In 1975, the City of Dallas annexed property for the development of Lake Ray Hubbard which expanded the ETJ into Rockwall and Kaufman counties. Other MUDs have been consented in the City’s Kaufman County ETJ by the City Council beginning in 2003 and most recently in 2019.
The petition before the City Council requests consent to create a new MUD in Kaufman County with 140.125 acres. The request is expected to permit the construction of improvements totaling $28,749,200.00. The MUD will have the ability to issue tax exempt bonds to finance public water supply and conveyance, wastewater collection and treatment, storm drainage facilities, and roadway improvements. Consent of the new MUD by the City Council is given provided that the facilities constructed are in accordance with plans and specifications which have been approved by the City of Dallas and that the City has the right to inspect all facilities being constructed. Further, the consent is given with the requirement that all development must comply with Article VIII, “Plat Regulations,” of the Dallas Development Code. Approval by the City Plan Commission is required prior to the construction of any structures. The creation or expansion of a MUD has no cost consideration to the City. The consent with the requirements to follow Dallas’ platting regulations and approval of plans for facilities ensures improvements in the ETJ are constructed to Dallas’ standards in the event of a future annexation. The city has no plans to annex the property at this time.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
The Economic Development Committee was briefed on the petition for consent of the new Willow Ranch Municipal Utility District No. 1 on January 6, 2025.
FISCAL INFORMATION
No cost consideration to the City.
OWNER/EXECUTIVE
Forney Development LLC
Ashok Chitiprolu, Chief Executive
MAP
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