Anna CC + P&Z

2/3/25 -12/17/24 | Full Report

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Welcome to Ultraground. We analyze local development sentiment for you.

P&Z February 3, 2025

CC January 28, 2025

CC December 17, 2024

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Sherley Farms East Anna

East Anna | 1,123 | 3,990 Units | 800 MF | 3,190 SFR | Approved

Planning & Zoning 2/3/25

ETJ → PD/AG/MU/I-1 | Approved

The Tellus Group’s Sherley Farms deal is a 1,123-acre master-planned community in East Anna, Texas. Referencing their Windsong Ranch deal in Prosper, Tellus Group introduced several innovative elements while maintaining strict controls on development quality and rental restrictions.

Building Product

U/ Product

Sherley Farms will include up to 3,000 high-quality single-family homes across various lot sizes, from half-acre estate lots to cottage homes, with home prices expected to range from $500,000 to over $3 million based on Tellus’ comparable developments. A distinguishing feature is the 65-acre working organic farm with "agritainment" components, positioning the development as an "agrihood" focused on wellness and lifestyle programming.

The development includes significant multifamily components with strict limitations. In Zone III, there is a 600-unit cap on total multifamily units. The Development Agreement stipulates a max of the following product types in Zone III: 100 townhome, 100 duplex, 100 condominium units, and 400 traditional multifamily units. Zone II is designated as a "flex tract" that can accommodate up to 200 multifamily units or can revert to single-family, in which case it would add 160 single-family units to the development's total.

Commissioner Vollmer sought clarification on the flex tract specifics:

Josh Vollmer

To clarify, Zone II, it can be either/or, or it can be a mix of both single family and multifamily?

Josh Vollmer, Vice-Chair, Planning & Zoning, Anna Place 6

The staff's affirmative response clarified the product flexibility:

Zone II can include both. So it can be single-family and multifamily.”

Notably for multifamily development, approximately 70 separate acres will be retained by Sherley Partners for future mixed-use development, with timing described as "pretty far down the road."

The Development Agreement requires site plan approval for all multifamily development to ensure conformance with city standards. Each multifamily phase must provide open space equal to 15% of gross development acreage, which can be met through various means including usable open space, landscape buffers, hardscape improvements, and amenity areas.

Finance

U/ Finance

The development will utilize both PID and TIRZ financing structures. The PID bonds are estimated at $300 million total principal amount. The TIRZ structure includes a 50% City participation rate for up to 40 years. For the Commercial Subzone, which includes multifamily development, the TIRZ revenue will first pay administrative expenses, then offset PID assessments, and finally provide Chapter 380 Grant funding for remaining costs of authorized improvements.

The project includes strict rental restrictions that could impact multifamily development. It's considered a material breach of the agreement if any party knowingly sells more than 5% of single-family detached lots to institutional investors intending to rent the homes. However, these restrictions appear primarily focused on single-family portions rather than dedicated multifamily zones.

For financing structure, the gross tax equivalent rate for annual PID assessment installments cannot exceed $1.35 per $100 valuation before TIRZ credit application. The value-to-lien ratio requirement is set at 2:1 minimum. The TIRZ participation provides significant assessment offset - the tax rate equivalent of $0.2536 reduces the net PID levy to $1.0964.

The Commission's discussion was brief, with only two questions raised: one about phasing direction (south to north confirmed) and verification about using both PID and TIRZ structures. There were no concerns raised about the multifamily components or financing structure.

Financial projections show multifamily units valued at $200,000 per unit for tax purposes, generating $1,014.40 per unit in City taxes annually. The PID assessment rate for multifamily is significantly lower than single-family at $0.4777 per $100 valuation (versus $1.35 for single-family), resulting in an annual assessment of $955.41 per unit after TIRZ credit.

The deal's unanimous approval process showed alignment with Anna's comprehensive planning objectives. As noted in the P&Z presentation, the project advances key placemaking policies while maintaining agricultural character through integrated farm amenities and extensive open space preservation.

Developer: The Tellus Group, David Blom Phone: (469) 532-0689 Email: [email protected] LinkedIn, Andre Ferrari Phone: (469) 532-0689 Email: [email protected] LinkedIn, Justin Craig Email: [email protected] LinkedIn
Owner: Sherley Family, Robert Thad Sherley Facebook LinkedIn
Staff Report: Sherley Farms
Developer Agreement: Sherley Farms DA
Project Plans/Presentation: Sherley Farms Plan
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Jefferson Foster Crossing

Anna 2050 Future Land Use Plan

Southwest Anna | 34.7 Acres | 260 Units | Postponed

City Council 1/28/25

PD/R-1/R-4 → PD/MF/C-1 | Postponed

JPI's $78 million, 260-unit rental townhome deal with 11.6 acres of commercial space is currently navigating the entitlement process after receiving a 5-2 denial recommendation from Planning & Zoning at the end of January. The 34.7-acre site, positioned at Foster Crossing Road and the future Ferguson Parkway, requires rezoning from PD/Single-Family Residential to PD/Multi-Family/Local Commercial.

Building Product

U/ Product

The program has evolved substantially from its initial 460-unit configuration, which Council rejected in May 2024. The deal now proposes 260 townhome units across 18.5 net acres at a density of 14.05 units per acre. The residential component features 52 one-bedroom, 114 two-bedroom, and 94 three-bedroom units, supported by 563 parking spaces yielding a 2.17 ratio. The commercial portion, developed in partnership with Craig International, encompasses three blocks totaling 11.6 acres.

The entitlement request centers on two primary modifications: increasing maximum density from 12 to 14 units per acre and reducing required open space from 246,600 square feet to 120,899 square feet. This 51% open space reduction could potentially be mitigated through Anna's parkland dedication ordinance, which permits fee-in-lieu contributions to satisfy open space requirements.

Infrastructure

U/ Infrastructure

The development interfaces with Ferguson Parkway, a planned major arterial receiving 80/20 state and federal funding through TxDOT. JPI proposes realigning the parkway from its current curved configuration to a straight north-south alignment, potentially reducing construction costs by $2 million according to development team estimates. The proposal includes constructing the northern half of Foster Crossing Road adjacent to the development.

Utility infrastructure includes existing water lines, with the developer responsible for constructing sewer infrastructure. The site requires no park dedication under the Anna 2050 Parks Master Plan.

Council sentiment fell into 3 buckets: process concerns, density implications, and infrastructure considerations. Council Member Kevin Toten had the strongest opposition, questioning the iterative modification approach:

Kevin Toten

How many times do we need to hear from this developer or JPI about this piece of property? This is the third time... They're not trying to work with the neighbors.

Kevin Toten, Council Member, Anna Place 1

In direct contrast, Council Member Lee Miller questioned the timing and process, noting "Reservations came late after the agenda had already been posted and some recommendations were suggested." He focused on specific development metrics:

  • Original density: 12 units/acre (222 units)

  • Requested density: 14 units/acre (259 units)

  • Actual proposed: 14.05 units/acre (260 units)

  • Open space reduction: From 246,600 SF to 120,899 SF (49%)

Lee Miller

You know that 50% number can be adjusted... we have that Park Land in lieu of ordinance that they could put money into a park fund account that would actually mitigate that. They have two years involved in this property and they have jumped through all kinds of hoops... you could do a lot worse than this particular developer.

Lee Miller, Council Member, Anna Place 6

This perspective suggests potential pathways for addressing density and open space concerns through existing policy mechanisms.

Community opposition covered traffic impacts, infrastructure capacity, and neighborhood character preservation. Resident Manjinder Singh conducted his own comparative analysis between the proposal and Craig Ranch development standards, highlighting divergences in density metrics and design quality.

The Ferguson Parkway alignment emerged as a critical technical and political consideration. Jim Luscombe, representing a multi-generational agricultural operation dating to 1914, detailed operational impacts of the proposed realignment. Resident Betty Sharp challenged the developer's market assumptions through comparative analysis, citing Harper Estates in Salina achieving 25% absorption of 1.1-acre lots on opening day. This market data potentially contests Craig International's assertion that single-family development remains financially unfeasible at current land basis.

Traffic impact analysis focused particularly on peak period congestion, with resident Tony Bellefond noting "You're very lucky if you can get out" during rush hour.

The development team's response strategy, articulated through Craig International, emphasized market constraints and optimization efforts. James Craig defended the proposed density as necessary for financial feasibility, noting traditional single-family development would yield only 80-105 lots.

Mayor Pro Tem Stan Carver II's perspective reflected a nuanced approach to developer track record and community integration:

Stan Carver II

I'm hoping that this developer does respect the City of Anna, does respect the residents of Pecan Grove, does respect all family members of the Luscombe family in some form or fashion and that he comes back and surprises us with something grand.

Stan Carver II, Mayor Pro Tem, Anna

This position suggests potential pathways for resolution through refined design responses and enhanced community engagement strategies.

The March 11 hearing will likely focus on several key metrics: the viability of the proposed 14.05 units per acre density, infrastructure alignment optimization, and mechanisms for addressing the 51% open space reduction through Anna's parkland dedication framework.

Meeting Connector

Planning & Zoning 1/6/25

PD/R-1/R-4 → PD/MF/C-1 Units | Denied

The January 6, 2025 Planning & Zoning Commission hearing revealed fundamental tensions in Anna's approach to density transition zones and open space requirements. The Commission's 5-2 recommendation for denial centered primarily on technical concerns regarding density metrics, open space calculations, and infrastructure alignment rather than broader policy objectives.

Commissioner Douglas Hermann's analysis focused on entitlement sequence implications, particularly regarding existing single-family development patterns:

Douglas Hermann Anna

The citizens bought thinking it was going to be single family. And for me, multifamily just doesn't make sense here.

Douglas Hermann, Commissioner, Anna Place 4

This perspective suggests potential gaps in Anna's transition zone policy framework, especially regarding density progression from established single-family neighborhoods to emerging mixed-use corridors.

The Commission's technical review highlighted specific concerns regarding open space calculations and utilization metrics. Commissioner Tom Longmire quantified the proposed reduction from 247,000 square feet (5.7 acres) to 121,000 square feet (2.78 acres), representing a 51% decrease from baseline requirements. Chair Jessica Walden's scrutiny of stormwater infrastructure inclusion in open space calculations raises questions about functional open space definitions within Anna's regulatory framework.

Commissioner Josh Vollmer's analysis acknowledged the development team's responsive modifications while identifying infrastructure alignment as a critical constraint:

Josh Vollmer

I don't mind the way the housing part of it is. I don't like the change of the Foster or the road being heavily involved in 2019 with the way that negotiation went.

Josh Vollmer, Vice-Chair, Planning & Zoning, Anna Place 6

This suggests potential tensions between site-specific optimization and established infrastructure planning frameworks.

The development team's density reduction strategy, transitioning from 460 units to 260 townhomes with eliminated three-story components, received mixed evaluation. Commissioner David Nylec characterized these modifications as insufficient:

David Nylec

It's like they moved things around a little bit, put a different bow on it, but it's still the same concept.

David Nylec, Commissioner, Anna Place 2

This response indicates potential challenges in achieving density targets while maintaining project feasibility within current market parameters.

The Commission's split vote (5-2) reflects broader questions about appropriate density metrics for transition zones between established single-family neighborhoods and emerging commercial corridors. Chair Walden's support focused on the development team's iterative response to previous feedback, particularly regarding building height and unit count reductions, while suggesting potential pathways forward through infrastructure alignment modifications.

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The hearing's outcome suggests several critical considerations for the March 11 Council review: the viability of alternative open space calculation methodologies, potential refinements to transition zone density metrics, and optimization strategies for infrastructure alignment within established planning frameworks. The Commission's technical concerns regarding open space utilization and stormwater infrastructure integration may require specific policy responses to establish precedent for similar transition zone developments in Anna's rapidly evolving suburban context.

Multifamily Developer: JPI, Bryan Grant Phone: (972) 373-3945 Email: [email protected] LinkedIn
Commercial Developer: Craig International, James Craig Phone: (972) 529-1371 Email: [email protected] LinkedIn
Owner: Samuel Adam Stephenson Phone: (972) 658-0420

In case you missed these, here are some additional end-of-2024 approvals in Anna:

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City Park Heights West 7936 County Road 285

Southwest Anna | 204 Acres | 755 Units | Approved

City Council 12/17/24

ETJ → PD | Approved

A 755-unit mixed residential development in Anna's southwest corridor received final zoning approval, marking a strategic expansion for the growing Collin County submarket. City Park Heights West spans 202.3 acres at County Road 285 and County Road 827, offering a mix of 432 single-family homes, 275 townhomes, and 58 HOA lots.

The project introduces product diversity to Anna's housing stock through three distinct residential types: traditional bungalows on 40-foot lots (1,800 SF minimum), townhomes on 24-foot lots (1,750 SF minimum, four units per building maximum), and courtyard-oriented cottages. The development's design employs a traditional transect pattern, with density concentrated near amenities and transitioning to larger lots at the periphery.

Infrastructure positioning is notable, with the site located along the main trunk line of Anna's new wastewater treatment plant. The development will integrate with planned major thoroughfares including Taylor Boulevard and a future north-south arterial, though water facility upgrades will be required.

The approval process moved efficiently from April to December 2024, with the City Council demonstrating flexibility on density despite the site's Ranching & Agriculture future land use designation. The development team, led by owner Raymond Sims and representative Martin Sanchez of Sanchez & Associates, successfully navigated flood plain considerations at the confluence of East Fork Trinity River and Hurricane Creek.

Owner: Raymond Sims Phone: (214) 544-0022
Representative: Sanchez & Associates, Martin Sanchez Phone: (469) 424-5900
Development Standards: City Park Heights West Dev Stnd
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City Park Heights East

Anna 2050 Future Land Use Plan

City Park Heights East 453 County Road 371

Northwest Anna | 60 Acres | 449 Units | 11 HOA Lots | Approved

City Council 12/17/24

ETJ → PD | Approved

Building on the momentum of City Park Heights West, a complementary 449-unit development in northwest Anna secured approval in the same November 2024 commission meeting. City Park Heights East occupies 60 acres along County Road 371, introducing another mixed-product residential community to Anna's expanding housing market.

The development maintains the innovative housing approach seen in its western counterpart, featuring bungalow-style townhomes oriented around shared courtyards. The product mix spans four distinct housing types with lot widths from 24 to 40 feet, reflecting a continued push toward diverse housing typologies in Anna's traditionally single-family market.

Commissioner Tom Longmire, who joined P&Z in August 2024, raised substantive questions about the project's financial and development structure, particularly regarding competitive bidding processes and potential Public Improvement District (PID) implementation. These inquiries highlight Anna's evolving approach to public-private infrastructure partnerships in its growth areas.

The development team, again led by Martin Sanchez of Sanchez & Associates but this time representing the Revocable Collins Family Trust, emphasized the market positioning of their courtyard-focused product. Infrastructure coordination, particularly regarding trail connectivity with adjacent JKB developments, emerged as a key planning consideration.

Like its western counterpart, this development secured approval despite diverging from Anna 2050's Ranching & Agricultural and Cluster Residential designations, reinforcing the city's pragmatic approach to density in strategic growth corridors.

Owner: Revocable Collins Family Trust
Representative: Sanchez & Associates, Martin Sanchez Phone: (469) 424-5900
Development Standards: City Park Heights East Dev Stnd
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