Title
A resolution authorizing the City Manager to finalize and execute a development agreement between the City of Mesquite, Texas, and HC Solterra, LLC, regarding the development of approximately 1,424.398 acres of land generally located southwest of East Cartwright Road and both northwest and southeast of Faithon P. Lucas, Sr., Boulevard within the corporate limits of the City of Mesquite, Texas, in Dallas County, Texas, as a master-planned development consisting of residential and commercial mixed uses; authorizing the City Manager to take such actions and execute such documents as are necessary or advisable to consummate the transactions contemplated by the agreement and authorizing the City Manager to administer the agreement on behalf of the City.
Body
At the October 5, 2020, City Council meeting, the City Council unanimously approved a change in zoning for the large undeveloped property in southeast Mesquite, formerly known as “Lucas Farms,” to Planned Development to allow Huffines Communities to develop a mixed-use residential community called Solterra in eight phases over the next 20 years.
The approved Solterra concept plan consists of 3,900 single-family residential lots, an amenity center with retail and restaurant use on 9.4 acres and 603 acres of open space with an extensive trail system and other amenities. The residential lots will be distributed as follows:
Lot Type Minimum Home Size Restricted Number
Duplex (SF-A) 1,100 square feet 15% maximum
Townhome (SF-A) 1,200 square feet for SF-A
30-foot width lots (SF-D1) 1,200 square feet 30% maximum
40-foot width lots (SF-D1) 1,350 square feet for SF-D1
50-foot width lots (SF-D2) 1,500 square feet 60% maximum
60-foot width lots (SF-D3) 2,000 square feet 8% minimum
70-foot width lots (SF-D4) 2,400 square feet 2% minimum
As was briefed at the October 15, 2020, Special City Council meeting, the developer has requested public financing participation in the form of a Public Improvement District (PID) and Tax Increment Reinvestment Zone (TIRZ) to reimburse the developer for public infrastructure costs related to the development. City staff and consultants have determined that the proposed PID and TIRZ will support the development and cover increased costs of public safety and other costs of service. The total PID bond authorization would be capped at $295 million and would provide sufficient bond proceeds to finance $201 million in authorized public improvements. The City’s TIRZ participation rate would not exceed 60 percent and the TIRZ revenues would be used to reduce the property owner assessments used to pay off the PID bond debt service. Any excess TIRZ revenues would be applied to TIRZ project costs and to help fund a portion of Lawson Road.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Development Agreement (Will be provided in Friday’s mail packet)
Drafter
Ted Chinn
Head of Department
Cliff Keheley