10.25.2011 Town Council MinutesV^
TOWN OF
PR SPER
Prosper is a place where everyone matters.
Call to Order / Roll Call.
MINUTES
Regular Meeting of the Prosper Town Council
Town of Prosper Municipal Chambers
108 W. Broadway, Prosper, Texas
Tuesday, October 25, 2011 at 6:00 p.m.
Mayor Smith called the meeting to order at 6:03 p.m.
Council present included: Mayor Ray Smith, Mayor Pro -Tem Kenneth Dugger, Deputy Mayor
Pro -Tem Meigs Miller, Danny Wilson, and Jason Dixon.
Council Member(s) absent: Curry Vogelsang Jr. and Dave Benefield.
Staff present included: Mike Land, Town Manager; Amy Piukana, Town Secretary; Hulon
Webb, Director of Development Services; Chris Copple, Planning & Zoning Manager;
Matthew Garrett, Finance Director.
2. Invocation, Pledge of Allegiance, and Pledge to the Texas Flag.
The invocation was given by Pastor Chris Schoolcraft with Prosper United Methodist Church.
The pledge of allegiance and pledge to the Texas Flag was given.
3. Announcements of dates and times of upcoming community events. Town Manager Mike Land
announced that the Texas Department of Transportation and Mario Sinacola and Sons
Construction Company will host a Town Hall Meeting November 3, 2011 at Rucker
Elementary School to discuss the construction schedule and details of the expansion of Preston
Road. Mr. Land announced that the Town of Prosper has been awarded the 2011 Municipal
Excellence Award for communication. Mr. Land reminded everyone that the Clothe a Child
program is set for Saturday morning.
4. CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered non-
controversial. The Consent Agenda can be acted upon in one motion. A majority vote of the
Council is required to remove any item for discussion and separate action. Council
members may vote nay on any single item without comment and may submit written
comments as part of the official record.)
Mayor Smith made a motion to pull Agenda Item (4b.) off the consent agenda. Motion
seconded by Deputy Mayor Pro Tem Miller. Motion approved by vote of 5-0.
MINUTES, RESOLUTIONS AND OTHER ITEMS,
4a. Consider and act upon minutes from the following Council meeting (AP)
0 October 11, 2011 — Regular Town Council Meeting
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4c. Consider and act upon Resolution No. 11-63 Second Amendment — Development and
Financing Agreement between the Town of Prosper and Blue Star Land LP, 183 Land
Corp. and Blue Star Allen Land LP. (ML)
4d. Consider and act upon Resolution No. 11-64 First Amendment - Water and Sewer
Improvement Development Agreement between the Town of Prosper, Forest City
Prosper Limited Partnership and Prosper Partners LP. (ML)
4e. Consider and act upon the September 2011 monthly financial statements. (MG)
Council Member Wilson moved to approve Consent Items 4a, 4c, 4d and 4e, as presented.
Motion seconded by Mayor Pro Tem Dugger. Motion approved by vote of 5-0.
4b. Consider and act upon Resolution No. 11-62 supporting the reconstruction of US 380
from the Denton County Line east to Custer Road, including the addition of frontage
roads between the Dallas North Tollway and SH 289 (Preston Road). (HW)
Transportation Project Manager Rajesh Janarthanan presented a power point presentation
regarding the TxDOT plans to widen US 380 from the Collin County Line east to Custer Road
noting the Regional Transportation Council has allocated Regional Toll Revenue funds for .
design and construction of the US 380 from the Denton County Line to Coit Road.
After discussion, Deputy Mayor Pro Tem Miller approved Agenda Item 4b. as presented.
Motion seconded by Mayor Pro Tem Dugger. Motion approved by vote of 5-0.
5. CITIZEN'S COMMENTS
(The public is invited to address the Council on any topic. However, the Council is unable to
discuss or take action on any topic not listed on this agenda. Please complete a "Public
Comments Form" and present it to the Town Secretary prior to the meeting.)
Other Comments by the Public- There were no citizen comments.
REGULAR AGENDA
(if you wish to address the Council during the regular agenda portion of the meeting, please fill
out a "Speaker Request Form" and present it to the Town Secretary prior to the meeting.
Citizens wishing to address the Council for items listed as public hearings will be recognized
by the Mayor. Those wishing to speak on a non-public hearing related item will be recognized
on a case-by-case basis, at the discretion of the Mayor and Town Council.)
Council skipped to Agenda Item 10.
EXECUTIVE SESSION
Council Member Wilson made a motion to recess into Executive Session at 6:23 p.m. for items:
10a. Section 551.071. Consultation with Town Attorney regarding agreement between the
Town of Prosper and 166 Bryan Road Partners, LP for the Reduction of the
Extraterritorial Jurisdiction of the Town of Prosper including a Strategic Partnership
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Agreement between the Town of Prosper and Denton County Fresh Water District No.
10.
10b. Section 551.071. Consultation with Town Attorney regarding Legal issues relating to
the First Street/Coit Road Improvements project.
Mayor Pro Tem Dugger made a motion to reconvene into Regular Session at 7:01 p.m. Motion
seconded by Deputy Mayor Pro Tem Miller. Motion approved by vote of 5-0.
No action was taken from Executive Session.
PUBLIC HEARING & DEPARTMENT RELATED ITEMS
6. Consider and act upon a public hearing to consider and act upon Ordinance No. I1-70 to tax
tangible personal property in transit which would otherwise be exempt pursuant to Texas Tax
Code, Section 11.253. Town Manager Mike Land briefed Council regarding Legislature
limiting the applicability of Tax Code 11.253 the Goods in Transit exemption. He explained
that the exemption only applies to goods that are stored in a public warehouse owned by
someone other than the owner of the goods. He explained the Town has a time limit to act
which is before December 31, 2011 in order to continue to tax such goods in 2012.
Council Member Dixon made a motion to open the Public Hearing. Motion seconded by
Council Member Wilson. Motion approved by vote 5-0.
There being no one present to speak, Mayor Pro Tem Dugger made a motion to close the public
hearing. Motion seconded by Council Member Dixon. Motion approved by vote of 5-0.
Council Member Dixon moved to approve Ordinance No. I1-70 to tax tangible personal
property in transit which would otherwise be exempt pursuant to Texas Tax Code, Section
11.253. Motion seconded by Deputy Mayor Pro Tem Miller. Motion approved by vote of 5-0.
7. A public hearing to receive public comment concerning the amendment of the land use
assumptions and capital improvements plan, and the imposition of an impact fee for water,
wastewater and roadway utilities. Planning and Zoning Manager Chris Copple briefed Council
regarding the Impact Fee Study performed by Freese & Nichols, and the CIAO
recommendation letter.
Scott Cole with Freese & Nichols and Jeff Whitacre presented a power point presentation with
the breakdown of Impact Fees, Land Use Assumptions, Water and Wastewater Impact Fee
Analysis and Roadway Impact Fees.
Mayor Pro Tem Dugger made a motion to open the Public Hearing. Motion seconded by
Deputy Mayor Pro Tem Miller. Motion approved by vote of 5-0.
Chairman of the Capital Improvements Advisory Committee Mark DeMattia was present and
spoke in support of the proposed Impact Fees.
Developer Matt Robinson spoke in opposition and had concerns with excessive fee amounts to
Developers through Impact Fees and asked Council to consider a fee survey with surrounding
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cities. He recommended that Council consider approving a comprehensive plan before
installation of costly infrastructure.
Developer John Rose spoke in opposition and had concerns with the high fees compared to
neighboring cities.
Council Member Wilson made a motion to close the Public Hearing. Motion seconded by
Mayor Pro Tem Dugger. Motion approved by vote of 5-0.
Council advised Staff to hold a future Work Session Meeting in order to discuss and provide
direction regarding the amendment of the land use assumptions and capital improvements plan,
and the imposition of an impact fee for water, wastewater and roadway utilities.
8. Discuss a Development Agreement between the Town of Prosper and Athlos Prosper Fund I,
LP for the development 188 acres in the northwest quadrant of Hwy 380 and the Dallas North
Tollway. Mike Land introduced Joe Drysdale. Mr. Drysdale explained that the project is a
proposed mixed-use development of approximately 2.2 million gross square feet of non-
residential space consisting of approximately 765,000 square feet of retail and hotel space,
restaurant, and other commercial space, 1.5 million square feet of office space, and 2,400
multi -family units, and other ancillary facilities needed to support the development. Mr. Land
explained the Development Agreement is a performance based agreement meaning any
reimbursement/incentive is generated through the value and sales resulting from the
construction and occupancy of the project. He noted the Agreement will require the financing
and construction of the first mile of the southbound DNT frontage road between Hwy 380 and
Fishtrap/First St. and Public Infrastructure including roads, water and sewer lines and other
enhancements up to a maximum cost of approximately $41 million plus interest. The
Developer and staff are currently evaluating the inclusion of the additional costs for the two (2)
miles of frontage road between Fishtrap/First St. and Parvin/Frontier Parkway. The
reimbursements for these expenditures are funded through the incremental increases within
the project generated by the proposed private improvements and sales taxes received. The
Town's financial reimbursement for public infrastructure is capped at the approximate $41
million level plus interest. Any cost over and above these amounts will be the responsibility of
the Developer without any reimbursement from the Town.
This item was discussed and no action was taken.
9. Discuss an Agreement between the Town of Prosper and 166 Bryan Road Partners, LP for the
Reduction of the Extraterritorial Jurisdiction of the Town of Prosper including a Strategic
Partnership Agreement between the Town of Prosper and Denton County Fresh Water District
No. 10. Town Manager Mike Land briefed Council regarding the proposed agreement noting
the Developer desires to join this property with the existing District 10 Utility District. The
District has the authority to construct the utility facilities and road improvements. The Town is
authorized to enter into this agreement per the Local Government Code and the Texas Water
Code. The Developer Judge Platt was present and briefed Council that in exchange for
releasing the 166 acre tract, they are offering the Town a Strategic Partnership Agreement and
full annexation option of the commercial tract within the previously released Comanche Ridge
project. This option allows for the Town to do a couple of things during the initial and later
years of the project. During the initial term of the project, the first 15 years, and including the
optional two terms of 15 years each, the Town may impose its sales tax on any commercial
development occurring on the commercial tract. The Developer is also requesting that the
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Town share a portion of its sales tax collection. Secondly, the Developer is agreeable without
objection to the Town performing a full annexation of the commercial tract after the first term
of the agreement has concluded thus allowing the Town to collect the sales tax and ad valorem
property tax. The Developer is offering for the Town's consideration to enter into additional
Strategic Partnership Agreements for two other areas for the purposes of collecting and sharing
sales and use tax.
The Developer is agreeable to designing the projects infrastructure to meet the North Texas
Council of Government's standards among others and design its drainage system for those
areas that may flow east to Doe Branch in accordance with the Town's drainage
requirements. There is specific language in the agreement regarding the alignment of Parvin
Road/Bryan Road expansion that should be examined. Building restrictions proposed by the
Developer are as follows:
1. The average density of the Development shall not exceed 4.25 single family dwelling
units per gross acre.
2. Multifamily residential dwelling units shall not be permitted within the Development.
3. Within the Development, the exterior facades of a main building or structure, excluding
glass windows and doors, shall be constructed of ninety percent (90%) Masonry (as
defined below). For purposes of this Paragraph 3, "Masonry" shall mean clay fired
brick, natural and manufactured stone, granite, marble, stucco, and architectural
concrete block. Masonry shall also include cementatious fiber board, but cementatious
fiber board may only constitute fifty percent (50%) of stories other than the first story.
However, cementatious fiber board may not be used as a fagade cladding material for
portions of upper stories that are in the same vertical plane as the first story.
Cementatious fiber board may also be used for architectural features, including window
box -outs, bay windows, roof dormers, garage door headers, columns, chimneys not part
of an exterior wall, or other architectural features. The remaining ten percent (10%) of
the exterior facades of a main building or structure, excluding glass windows and doors,
shall not be wood, vinyl or EFIS.
This item was discussed and no action was taken.
Mayor Pro Tem Dugger made a motion to recess into Executive Session at 8:12 p.m. Motion
seconded by Council Member Wilson. Motion approved by vote of 5-0.
10. EXECUTIVE SESSION
Recess into Closed Session in compliance with Section 551.001 et. seq. Texas Government
Code, to wit; and Section 551.071 Meeting with City Attorney regarding a matter(s) in which
the duty of the City Attorney under the Texas Disciplinary rules of Professional Conduct of the
State Bar of Texas conflicts with the Open Meetings Act regarding:
10c. Section 551.072. To deliberate regarding Real Property located south of Prosper Trail, West of
Custer, east of Dallas North Tollway and north of Highway 380.
IOd. Section 551.087. To deliberate the purchase exchange, lease, or value of real property located
south of Fishtrap, North of Hwy. 380, East of FM 1385, and West of Burlington Northern
Railroad.
1Oe. To reconvene in Regular Session and take any action necessary as a result of the Closed
Session.
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Mayor Pro Tem Dugger made a motion to reconvene into Regular Session at 8:33 p.m. Motion
seconded by Council Member Wilson. Motion approved by vote of 5-0.
No action was taken from Executive Session.
11. Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting. No items
discussed.
12. Adjourn -Deputy Mayor Pro Tem Miller made a motion to adjourn. Motion seconded by Mayor
Pro Tem Dugger. Motion approved by vote of 5-0.
The meeting adjourned at 8:38 p.m.
ATTEST:
4M
Amy. PI a a, TRMC
Town Secretary
APPROVED:
Ray SmO, Mayor
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