City rezones 7.611-acre city-owned parcel to residential estate to help fund Miss May Drive extension

Staff recommended, and the Planning and Zoning Commission approved, zoning case ZR25-001 to change a city-owned 7.611-acre tract at 644 Prince Lane from agricultural zoning to residential estate to allow large-lot single-family subdivision (1-acre minimum lot size). Ryan Wells, director of planning and development services, said the property was purchased by the city to facilitate the Miss May Drive extension (linking Prince Lane to FM 552 and serving the new Worthy Fate High School) and that the existing house on the parcel will be demolished to accommodate the road right-of-way.

Wells explained the intent is to reserve the right-of-way for the Miss May Drive extension, then subdivide the remainder into roughly five one-acre residential lots that the city could sell to help offset the cost of the road. He said the future land-use map designates the area as Rural Reserve (labeled Residential Estate in the zoning district) and that surrounding land uses are largely large-lot residential, making the request compatible with the neighborhood context.

Staff performed a fiscal analysis and reported that the five developed lots could create roughly $3,000,000 in taxable value and a year-one property-tax contribution of approximately $6,600, but that the project’s proportionate cost to serve (driven largely by roadway frontage) was estimated about $17,000 per year, resulting in a project net revenue of about negative $17,000 per year and a 40-year projected loss of about $700,000 (revenue-to-cost ratio with roads 0.27). Wells said the city accepts that large-lot residential development does not pay for itself on a per-project basis, but that the city’s broader land-use and fiscal strategy balances these projects across the overall tax base; he added that the road would not be built without the rezoning and subsequent subdivision/sales strategy.

Commissioners asked whether the property lies inside city limits (Wells confirmed it does), about deed restrictions or minimum home sizes (Wells said the city currently does not impose minimum house-size standards in its UDO and that accessory dwelling units are allowed subject to development regulations), and about sale timing (Wells said lots could be sold individually or in bulk depending on market conditions). Staff noted the city paid approximately $1,200,000 to acquire the property and that the road project estimate is over $5,000,000; the sale strategy is intended to recoup some of those costs.

After a public hearing with no speakers, the commission moved, seconded and approved ZR25-001 by voice vote.