H.B. 1472 - Annexation Development Agreements

Texas Local Gov’t code ? 212.172 provides authority for municipalities to enter into development agreements concerning land in their extraterritorial jurisdiction. The agreement may authorize enforcement of specified development and environmental regulations in the ETJ, guarantee the extraterritorial status of the land and its immunity from annexation by the municipality for a period not to exceed 15 years, provide for annexation of some or all of the land, provide for infrastructure, and specify the uses and development of the land before and after annexation, if annexation is agreed to by the parties. Texas Local Gov’t Code ?212.172, Texas Legislature Online, http://tlo2.tlc.state.tx.us/statutes/lg.toc.htm (last visited 7/30/07). The parties to a contract may renew or extend the agreement for successive periods not to exceed 15 years each. The total duration of the original contract and any successive renewals or extensions may not exceed 45 years. Id.

As of 2007, cities and rural landowners have also used the authority of Section 212.172 to enter into “nondevelopment” agreements, where a city agrees to not annex “rural appraised” lands for a period of time in exchange for the rural landowner’s promise to not develop the land.

Amendments to TEX. LOC. GOV’T CODE ? 43.035(b) provide that a city may not annex an area that is appraised as agricultural, wildlife management, or timber management unless the city offers a development agreement to the landowner that would: (1) guarantee the continuation of the extraterritorial status of the area; and (2) authorize the enforcement of all regulations and planning authority of the city that do not interfere with the use of the area for agriculture, wildlife management, or timber. The rural landowner must either: (1) accept the agreement; or (2) decline to make the agreement and be subject to city annexation. (see Texas Municipal League, Legal Memo (2007) H.B. 1472 - Annexation Development Agreements, Accessed November 15th 2007 at: http://www.tml.org/legal_pdf/HB1472-annexation.pdf) A sample “nonannexation agreement” from Caldwell County can be downloaded at this link: http://www.tml.org/legal_pdf/1472-annexation-sample.pdf

City of Austin. The City of Austin maintains extensive information on its current and recently completed full and limited purpose annexations along with three year municipal service plans at the following link: http://www.ci.austin.tx.us/annexation

The Texas Municipal League has produced a number of legal summaries on Texas annexation issues for general law and home rule cities. They offer practical insights for cities and unincorporated areas considering annexation:

Houston, Scott. 2004. Municipal Annexation in Texas: Is It Really That Complicated? A 53 page paper presented at the 2004 Texas Chapter of the American Planning Association that provides legislative history and describes procedures to follow for general law and home rule cities. (http://www.tml.org/legal_pdf/ANNEXATION111704.pdf)

Fort, Julie. 2007. Annexation Of Nonconforming Uses, Presentation to the Texas City Attorneys Association, Dallas, Texas (November) A 15 page paper that covers the legal issues involved in municipal annexation of non-conforming land uses. ( http://www.tml.org/legal_pdf/2007Annexation_PriorUse.pdf)