If a Buda council idea works as planned, there could be more industrial and commercial expansion within the city limits.
Last week, the Buda City Council held the second of two mandatory public hearings on the annexation of a 700-acre parcel of land south of the city limits. Annexation of the land has been in discussion since 2010, but the actual plan was first introduced in February of 2012. This parcel of land extends from the area east of the Texas Lehigh Cement Company, west of Dacy Lane, south of Windmill Way and north of the Kyle City Limits.
Under the current annexation service plan, the proposed annexation area would be a mix of commercial, retail and industrial use, along with some residential lots. The area, as part of the city, would be subject to Buda’s .2713 property tax rate. In addition, the proposed annexation area would be subject to the sales tax rate of two cents, which is divided into one-half cent increments going to Hays County, Emergency Service District (ESD) #8, the Buda Economic Development Corporation (EDC) and the city itself.
The Buda Police Department will provide protection in the areas proposed for annexation. Providing fire service will be ESD #8, while ESD #2 provides EMS protection.
Water and wastewater services will be divided among three separate entities under the service plan. Currently, the annexation area falls under the Goforth Special Utility District or Monarch Utilities I LP. Under the plan, both entities will continue servicing their respective zones. Buda currently handles wastewater in the proposed annexation area, and will continue to provide service, as well as extend service should the annexation be approved.
In order to move forward with annexation proceedings, Buda had to acquire land in the southernmost area of the annexation plan, which fell under Austin’s Extra-Territorial Jurisdiction (ETJ). The city of Austin released the property in its ETJ due to Buda’s Water Pollution Control and Abatement Ordinance, adopted in 2001, which limits pollution risk to Barton Springs and areas that fall under the Edward’s Aquifer Recharge Zone by regulating development. Because of the statute, “the City of Austin was comfortable releasing ETJ to (Buda),” Chance Sparks, Director of Planning in Buda, said.
Buda’s ability to annex the land around the Texas Lehigh Cement plant helped spur this proposed expansion, Sparks said. Until last year, both the city and Lehigh were embroiled in a fight over the land surrounding the cement giant. The fight centered on the company’s requirement of a special permit so that it could continue to use its land as it currently does – for cement production.
Lehigh “simply needed additional assurances that their land use could continue unhampered following annexation, which was accomplished through a special use permit,” Sparks said. “They were looking for regulatory certainty.”
As the annexation process takes shape, the city has to face other hurdles. One in particular stems from the “black fire hydrant” situation that has been in place in the Monarch Utility District. A large portion of the annexation falls under this category. Black hydrants are normally representative of low water pressure, which are coded to inform fire departments not to use them. However, that is not necessarily the case in the Monarch district, where all of the fire hydrants are colored black.
Monarch, which is an investor-owned utility company, has kept the hydrants black after ESD No. 5 rejected a memorandum of understanding (MOU) from Monarch in December 2012. In that MOU, Monarch offered to color code fire hydrants in their utility district, provided the utility company be relieved of responsibility for water pressure in the hydrants. As a result of ESD No. 5 decision, the company’s black hydrants are thought to hinder Buda’s efforts to bring in new business. Safety is the primary reason why, as the city’s inability to guarantee adequate water pressure in case of a fire, many potential businesses avoid developing in the Monarch district, according to Buda Mayor Todd Ruge.
Increase in costs is another hurdle for the expansion of businesses. “The ‘black hydrants’ stifle the development potential of [properties] by adding substantially to the development cost,” said Sparks in an e-mailed response. “For example, inability to certify fire flows at these hydrants requires installation of fire suppression sprinkler systems at significant expense in buildings that, based on the hydrant location, might otherwise not need them if the hydrants had sufficient pressure.”
Sparks also said the inability to ensure water flow in black fire hydrants could force companies to install on-site water cisterns. The added safety measures will increase expenses, which many businesses are not willing to deal with, he said. “This has suppressed economic development potential in this area and caused business prospects to look elsewhere,” Sparks said. “Annexing allows us to better represent interests in this area of the city so heavily affected by the black hydrant issue.”
Currently, members of the city council, along with Buda Fire Marshall Mike Duffey have testified in favor of Texas House Bill 1797, authored by Rep. Jason Issac (R-Dripping Springs) and State Bill 1086, authored by Sen. Donna Campbell (R-New Braunfels). Both bills aim to regulate water and sewage companies in the realm of public safety. The legislation would force Monarch to code their hydrants. However, the black hydrants will “not stop” the annexation process, according to Ruge.
“In many cases (property owners) simply wanted to know how it affected them and did not express an opinion,” Sparks said.
The next step for the city is to vote on the proposed annexation, which is scheduled for a special city council session on April 30.
