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07-26-2023 Joint CC & PZ Agenda Packet       MEETING AGENDA Joint Meeting City Council and Planning & Zoning July 26, 2023                                   HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 CITY OF SCHERTZ CORE VALUES Do the right thing Do the best you can Treat others the way you want to be treated Work cooperatively as a team    AGENDA WEDNESDAY, JULY 26, 2023 at 5:30 p.m. City Council and The Planning and Zoning Commission will hold a joint session at 5:30p.m., Wednesday, July 26, 2023, at the City Council Chambers. In lieu of attending the meeting in person, residents will have the opportunity to watch the meeting via live stream on the City's YouTube Channel.        Call to Order   Presentations  Service Recognition for Vice Chairman Ernest Evans Jr.   Hearing of Residents This time is set aside for any person who wishes to address the Subcommittee. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 3 minutes.  All remarks shall be addressed to the Subcommittee as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Subcommittee may be requested to leave the meeting.   PUBLIC HEARING: City Council and the Planning and Zoning Commission will hold a public hearing related to the Comprehensive Plan Advisory Committee (CPAC) within this agenda. The public hearing will be opened to receive a report from staff, Freese and Nichols, and any other interested persons. Upon completion, the public hearing will be closed. The Joint Session will discuss and consider the application, and may request additional information from staff or the applicant, if required.    1.Conduct a public hearing, workshop, and discussion for the Schertz Comprehensive Plan update.   Adjournment July 26, 2023  City Council Agenda                                Page 1       CERTIFICATION I, SHEILA EDMONDSON, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 21ST DAY OF JULY 2023 AT 4:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE.   SHEILA EDMONDSON                                                    I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2023. TITLE: _____________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1030. The City Council for the City of Schertz reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Closed Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion.    COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS     Mayor Gutierrez Audit Committee Board of Adjustments Investment Advisory Committee Main Street Committee Senior Center Advisory Board-Alternate Councilmember Davis– Place 1 Interview Committee for Boards and Commissions Main Street Committee - Chair Parks & Recreation Advisory Board Schertz Housing Authority Board Transportation Safety Advisory Commission TIRZ II Board  Councilmember Watson-Place 2 Audit Committee Library Advisory Board Senior Center Advisory Board Cibolo Valley Local Government Corporation-Alternate   Councilmember Whittaker – Place 3 Historical Preservation Committee Interview Committee for Boards and Commissions-Chair TIRZ II Board    Councilmember Dahle – Place 4 Cibolo Valley Local Government Corporation Interview Committee for Boards and Commissions Planning and Zoning Commission TIRZ II Board Councilmember Scagliola – Place 5 Animal Advisory Commission-Alternate Hal Baldwin Scholarship Committee Schertz-Seguin Local Government Corporation   Councilmember Heyward – Place 6 Animal Advisory Commission Audit Committee Building and Standards Commission Economic Development Corporation - Alternate Investment Advisory Committee Main Street Committee Interview Committee for Boards and Commissions-Alternate Senior Center Advisory Board Councilmember Brown – Place 7 Economic Development Corporation Main Street Committee Schertz-Seguin Local Government Corporation - Alternate   July 26, 2023  City Council Agenda                                Page 2     July 26, 2023  City Council Agenda                                Page 3     Agenda No. 1.   CITY COUNCIL MEMORANDUM    City Council Meeting:07/26/2023 Department:Planning & Community Development Subject:Conduct a public hearing, workshop, and discussion for the Schertz Comprehensive Plan update. BACKGROUND The City has entered into a contract with the consulting firm Freese and Nichols to assist with updating our Comprehensive Land Use Plan. The initial kick-off meeting was on March 27 th, 2023, where staff was introduced to their team and a tour of the city was given. In the contract, Freese and Nichols is required to have four Comprehensive Plan Advisory Committee (CPAC) meetings. The Planning and Zoning Commission was chosen to serve as the CPAC due to the unique position the commission has in dealing with land use issues. The first of these CPAC meetings was on May 24th, 2023. Another step in the process is the public input portion. This has taken the shape of five focus group meetings. The focus groups will represent citizens, stakeholders, and community members from Randolph Air Force Base, businesses and developers, representatives from HOAs, the city’s boards and commissions, as well as staff itself. As of this report, there has been three focus group meetings with the remaining two set to take place on July 24th and July 26th, 2023. Also, on July 26th, there will be a rollout of a website that will contain progress reports, informational resources, and a survey for anyone with interest to fill out. CPAC #2 will be held as a joint session with the Planning and Zoning Commission and City Council. Freese and Nichols will have a more significant presentation at this CPAC and is looking for greater input/feedback. Attachments Freese and Nichols CPAC#2 Presentation  Comprehensive Plan Update July 26, 2023 City of Schertz CPAC Meeting #2 Meeting Agenda Introductions Project Orientation Market Snapshot Future Land Use Exercise Project Team Project Orientation July 26, 2023 City of Schertz CPAC Meeting #2 Mar-May 2023 Project Initiation & Kickoff Proposed Timeline May-Jul 2023 Snapshot, Analysis & Existing Conditions Market Analysis Vision & Guiding Principles Jun-Aug 2023 Jul-Aug 2023 Sep-Oct 2023 Preparation of Final Documents Nov-Dec 2023 Adoption Meetings Future Land Use Transportation Parks & Recreation Implementation Strategies CPAC: 5/24 CPAC: 7/26 Stakeholder Meetings CPAC: 8/23 Community Event CPAC: 9/27Kickoff: 3/27 Market Snapshot July 26, 2023 City of Schertz CPAC Meeting #2 ECONOMIC BENEFITS Local PrideQuality Development Strong Neighborhoods First Class City Services Talent High Quality Infrastructure MARKET ORIENTED ALIGNED WITH OWNERSHIP COMMUNITY VALUES AND VISION NEXUS = BALANCED & IMPLEMENTABLE VISION CALIBRATED OBJECTIVES GUIDED BY EDC STRATEGIC PLAN AND COMPREHENSIVE PLANINTEGRATES REAL-TIME OWNER OBJECTIVES AUTHENTIC ACTIVATION •Randolph AFB acts as a strong economic driver •Schertz has a substantial amount of undeveloped land •Schertz’s location in-between IH35 and IH10 •Schertz is centrally located within a growing region that includes large employment and population centers including San Antonio, New Braunfels, San Marcos, and Seguin, among others. DEMOGRAPHICS Key Takeaways Schertz is projected to experience faster population growth than the State, with a projected annual growth rate of 1.8%. By 2030, Schertz's population is expected to grow to 58,881. DEMOGRAPHICS Regional Snapshot Schertz San Antonio MSA Texas 2022 Population 44,360 2,661,164 30,157,100 2027 Population 47,821 2,799,634 31,502,395 2022 - 2027 Compounded Annual Growth Rate 1.5%1.0%0.9% Median Age 37.2 36.2 35.4 Median Home Value $263,895 $235,989 $238,757 Median Household Income $100,849 $67,803 $70,834 Owner Occupied Housing 77.7%64.4%62.7% Key Takeaways •Strong growth pressure •High home ownership rate •Above average incomes •Strong neighborhood values DEMOGRAPHICS Key Takeaways •The disposable income in Schertz is also higher than both the San Antonio MSA and Texas medians •The average HH income in Schertz is higher than both the San Antonio MSA and Texas averages •When consumers have more disposable income, they can spend more money on goods and services, which can stimulate economic growth Income Schertz San Antonio MSA Texas Median HH Income $100,849 $67,803 $70,834 Average HH Income $118,183 $94,960 $101,658 Median Disposable Income $82,732 $57,231 $59,270 SWOT ANALYSIS Strengths Weaknesses ThreatsOpportunities Geographic Location: Schertz is strategically located between two major cities in Texas, San Antonio and Austin, making it an ideal location for businesses to operate. Limited Cultural Opportunities: Schertz lacks significant cultural attractions and opportunities, such as museums, theaters, and festivals. Business Growth: Schertz can leverage its strategic location and strong economic base to attract new businesses and industries to the area, which can create more jobs and generate more revenue. Managing Rapid Growth: The City has experienced significant population growth in recent years, which has put pressure on city services and infrastructure. The challenge is to manage this growth effectively while maintaining the city’s quality of life and economic vitality. Strong Economy: Schertz has a strong economy supported by a few industries including manufacturing, healthcare, and retail. Limited Higher Education: Schertz does not have any community colleges or universities, which can make it challenging for residents to pursue higher education without commuting to neighboring cities. Tourism: Schertz can develop its cultural and historical attractions to bring more tourists to the area and promote economic growth. Economic Diversification: Schertz’s economy is heavily dependent on a few industries, such as manufacturing and healthcare. The city needs to diversify its economy to reduce the risk of economic downturns and create more job opportunities. Good Quality of Life: Schertz has a great quality of life with excellent public services, good schools, and a low crime rate. Lack of Housing Options: Schertz has a lack of affordable housing options as well as a limited variety of housing products that are available. This can make it a challenges for all age groups to stay and grow within the City. Education: Schertz can work to attract colleges and universities to the area to provide more opportunities for residents to pursue higher education and create a skilled workforce. Hazard Mitigation: Schertz has had several high impact flooding events that have caused significant damage to the community in the past 30 years. Managing developments in and around floodplains will be a high priority for the City as it continues to experience a period of significant growth. High Quality Utilities: Schertz has high- quality water, electric, and sewer utilities that serve both residents and businesses. Transportation Infrastructure: Many of principal arterial roads such as FM1518 and FM1103 within Schertz have not yet been upgraded to manage recent increases in traffic volume. Interstates 35 and 10 have also experienced increased congestion in the areas around Schertz, making mobility between destinations a challenge for both businesses and residents. MARKET DEMAND Understanding market realities Annual Multifamily Demand 371 Units Rental Rate <$1,000 119 Rental Rate $1,000 - $1,500 49 Rental Rate $1,500 - $2,000 57 Rental Rate $2,000+146 Alternative Renter-Occupied Housing Demand 74 Units •Moderate demand for Multi-family housing units •The high number of units with rental rates below $1,000 suggests a strong demand for affordable rental housing options MARKET DEMAND Understanding market realities Traditional Single-Family Detached Demand 513 Units Homes < $200k 120 Homes $200k - $250k 74 Homes $250k - $350k 148 Homes $350k - $450k 106 Homes $450k+65 Alternative Single-Family Product Demand 108 Units •There is strong demand for homes in the $350k+ range •Alternative single-family product is townhomes, condos, etc., that developers can take into consideration when starting a project Program Justification Category Owner-Occupied Residential Renter-Occupied Residential Office Retail Industrial Demand High High Moderate Moderate Moderate Opportunities •Missing middle •Planned developments •Mixed-use •Leverage regional talent •Mixed-use •Themed •Flex-tech Challenges •Lack of infrastructure •Analog •Anti-rental culture •Inflation •Increased unemployment •Labor costs •Regional competition •Decreased demand Target •$350+•Urban walk up •Corporate •Garden •Destination retail •Entertainment •Advanced manufacturing Market Values •$326,612 •1.29/SF •$29.03 •$19.26/SF •$8.75/SF Absorption Rate •513 units annually •371 units annually •10,500 SF •218k SF •200k SF Emerging Priorities 1.Explore opportunities to evolve corporate attraction to advanced technologies 2.Innovate retail with placemaking and destination to increase gravity 3.Expand housing options (missing middle, executive, attainable) 4.Invest in local talent 5.Maintain strong economic development programs 6.Leverage development projects with local and regional economic development potential 7.Relate specific development projects to one another in order to maximize sustainable development opportunities,maximize tax base and optimize the development patterns. 8.Align development outcomes with the broader goals of the community in context with current market conditions Future Land Use Exercise July 26, 2023 City of Schertz CPAC Meeting #2 Previous Studies •Future Land Use Plan •Comprehensive Land Plan •Sector Plan •Parks and Recreation Master Plan •Thoroughfare Plan 4 Key Areas •Area 1 – designated as Agriculture Conservation (5-acre min lot size) and Estate Neighborhood (½ acre min lot size). Mostly undeveloped, but several property owners are interested in selling to developers. There have been rezoning approvals for single-family residential (suburban size lots – 6,000 sq ft to 10,000 sq ft). •Area 2 – within the JBSA Randolph Clear Air Impact Compatible Use Zones and the area in between them. Mostly Estate Neighborhood but JBSA Randolph has concerns about the density – pushing for 2-acre minimum. APZ 1 (northern light blue) does not allow residential. •Areas 3A and 3B – Do these areas remain inside the ETJ, or should they be released? If they remain, what land use designation should they have? •3B would likely develop as suburban single-family residential development. •3A has a quarry in the middle and estate lots. Providing services and road access is challenging, There are issues with regulating and dealing with complaints related to the quarry. •Area 4 – Development pressures on the Estate designated area and Industrial uses starting to develop. There needs to be a balance of Industrial, Commercial, Retail etc. Land Use Scenario 1 3a 3b 4 1 2 Land Use Scenario 2 3a 3b 4 1 2 •Revise Draft Future Land Use Map •Monitor and Summarize Community Survey and Interactive Map Input and Comments •Community Engagement Events •CPAC Meeting #3 – August/September