The purpose of this agenda item is to hold the second public hearing on and authorize the execution of the proposed Amended and Restated Strategic Partnership Agreement (SPA) with Fort Bend Municipal Utility District (MUD) No. 128 (Riverstone).
The Texas Local Government Code requires the City to hold two public hearings prior to the adoption or amendment of the SPA. City Council held the first of two required public hearings on October 19, 2021, and no members of the public spoke. City Council asked staff several questions, which were addressed by staff. Public hearing notices have been placed in accordance with state statute: in the City's newspaper of general circulation - the Fort Bend Independent - as well as the MUD's newspaper of general circulation - the Fort Bend Herald. The public hearing notice is included as an attachment to the agenda request. Staff has not received any inquiries regarding the public hearing.
Staff recommends City Council hold the second public hearing and authorize the execution of the proposed Amended and Restated Strategic Partnership Agreement (SPA) with Fort Bend Municipal Utility District (MUD) No. 128 (Riverstone).
SPA Amendment Summary
City Council authorized the execution of the original SPA with the MUD on May 3, 2011. MUD 128 has requested the revision to the SPA focused on limited purpose annexation for the purpose of collecting sales tax. Below is a summary of the major changes being proposed:
- Addresses limited purpose annexation of commercial areas, for collection of sales tax
- Sales tax will be collected and split 50/50 between district and City
- 4A and 4B will collect their full amount, with the remainder of the City’s portion going to the General Fund
- City is responsible for remitting sales tax to the district on a quarterly basis
- District is responsible for notifying City of new businesses opening within limited purpose annexation area
- Should any areas be developed with residential, the City may disannex the property
- MUD 128 legal description has been updated to reflect the annexation of former MUD 126 and MUD 127 properties into MUD 128.
Exhibits to the agreement include those originally attached to the SPA as well as a new exhibit. Some changes to the exhibits were necessary and are indicated below:
- Exhibit A - MUD 128 Legal Description - replaced with updated boundaries of MUD 128
- Exhibit B - Utility Agreement - no changes
- Exhibit C - Metes and Bounds of Riverstone within Sugar Land ETJ - replaced with updated boundaries of MUD 128; identical to Exhibit A
- Exhibit D - Fire Protection Agreement - replaced draft with executed agreement
- Exhibit E - Limited Purpose Property Description - new exhibit describing area of limited purpose annexation.
Attached is a map showing the areas that would be annexed for limited purposes. The areas are primarily made up of commercial properties, with some roadways also included so that the LPA area will be contiguous to the City limits. Additionally, note that northeast of the intersection of LJ Parkway and University Blvd, there is a "hole" in the limited purpose annexation area. This is due to the fact that this property was not owned by the developer when MUD 128 was created, and therefore the area was not included in the MUD. This out tract area will not cause any issues when the property is annexed for limited purposes. However, prior to full purpose annexation of MUD 128, the City will initiate discussions with the property owner regarding full purpose annexation to minimize potential service provision confusion. The draft changes were last reviewed with the Intergovernmental Relations Committee on July 20, 2021.