Utility district for a 631-home subdivision south of Tate Circle goes before the council Monday

A developer planning 631 homes on about 184 acres east of U.S. 75 is asking the Sherman City Council to consent to a municipal utility district for the project, a step city staff say would let the company recover some of what it spends building public infrastructure there.

The request, Resolution No. 7690, is on the council's agenda for Monday, Nov. 2. The meeting starts at 5 p.m. in the council chambers at City Hall, 220 W. Mulberry St. The item is listed for a separate vote, not on the consent agenda.

The petition

Sherman Lakes JV, LLC filed a petition asking the city to consent to the Sherman Lakes Municipal Utility District of Grayson County, covering about 183.68 acres inside the city limits, generally south of Tate Circle and Shepherd Drive and east of U.S. 75.

According to a staff report prepared by Teri Fine, assistant to the city manager, the council approved a development agreement for Sherman Lakes on July 6.

The company's application to the city describes a single-family subdivision of 631 homes for sale at market rates, on land already zoned as a planned development, with no zoning change needed. It puts the total project cost at $24.5 million and the estimated value of the property at completion at $252.4 million. Start and finish dates are listed as to be determined.

The developer says its financing is secured and that it has not applied for incentives from the Sherman Economic Development Corporation, the state or any other city department.

What the city would agree to

The staff report says the petition and the city's consent are required before the developer can take the next steps toward creating the district through action of the Texas Legislature. The district would let the developer recoup certain costs of public infrastructure within the development, and that work would have to meet current city building and utility standards.

The resolution attaches conditions. The district would have to build its facilities to plans the city approves, and the city could inspect the work. Any bonds the district issues would be limited to water, sanitary sewer, storm drainage and road systems, along with related soft costs and the costs of creating and running the district.

The developer and the city would also have to sign one or more enforceable master development agreements covering the land and the district's operation.

Staff say accepting the petition carries no cost to the city, since the petitioner pays all costs of the petition and of creating the district, and they recommend approval.

Sources

shermantx.api.civicclerk.com

shermantx.api.civicclerk.com