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It Really Is Bigger In Rural Small Town Texas
by Torry Edwards
The largest rural master planned developments within the state of Texas in a city with a population under 20,000 are being formed in the small town of Terrell. While preparing for future expansion of the tax base, the City Council created opportunities for controlled growth without raising the taxes of current residents.
Approximately 11,000 presently undeveloped acres are included in the combined projects. Over the next 15 years, the population is expected to exceed 70,000 as 22,000 new homes are added to the city. This growth will be carefully guided by partnership agreements between the city, the developers, and other stakeholders.
Through progressive policy initiatives the City Council has taken a proactive role in community development. The resulting partnership agreements bring together elements of regional cooperation, intergovernmental partnerships and thoughtful financial arrangements.
The key to managing the growth rolling toward Terrell from the Dallas/Fort Worth Metroplex is a strategic land development plan drawn up by the City Council and city staff. An article published in Public Works Management & Policy in July 2007 described the process undertaken by the city to manage future growth.
The city’s innovative approach has generated much interest among city officials as well. Mayor Hal Richards was invited to present the Terrell model as a “best business practice” to other elected officials and city managers at a regional Mayors’ Conference in North Central Texas.
During its 135-year history, Terrell has served as a regional center for agricultural and railroad commerce. There are many well preserved historic homes in Terrell, some built in the 1800s and many prior to 1960. The current inventory provides barely enough housing for existing residents.
The city’s goal is to encourage desirable development while curbing runaway growth that would diminish the character of this historic rural community. The city faces challenges in assuring that new housing, infrastructure, and commercial development meet high standards and that resources are available to meet an increased demand for services, including the need for new roads and bridges.
The first step taken by the City of Terrell was to support state legislation in 2005 and 2007 that created a special utility district within the city’s extraterritorial jurisdiction (ETJ). This legislation allows the City Council to extend water and waste water services to the district in return for the right to give input regarding the type and quality of new developments. The city also has a sales tax sharing agreement with special law districts in the ETJ to generate new sales tax revenue. More of these special law districts are expected to be created in the 2009 session. Terrell was invited to present testimony on the application of this model at a Senate committee hearing during the 2007 session of the Texas State Legislature.
The investment of private capital in public improvements is only feasible when development partnerships exist between all involved entities: the city, the county, the state, private developers, and special districts. The city’s innovative and comprehensive planning effort includes these partnerships while also addressing a desire to expand trade capacity.
In addition, Terrell established the county’s first Tax Increment Finance (TIF) district, which will generate $158 million in public improvements within the 4,500-acre district. This will contribute to and help control development in this Regional Power Center, which includes a major medical research campus just east of Dallas.
Infrastructure improvements will be funded by private developers who will be reimbursed over the life of the TIF (30 years) from additional tax income resulting from the difference in the value of the land between the time it was purchased as raw, agricultural land, and the increase in its value as a developed commercial property. This arrangement balances the cost burden of growth between developers and tax payers.
In 2001 the City of Terrell had entered into two development agreements. By the end of October 2008 the city had drawn up 40 such agreements for commercial, residential and industrial projects. These agreements represent the concerted efforts of many groups and individuals whose cooperative endeavors have successfully stimulated economic development. Terrell stands poised to meet the challenges of managed growth: to maintain high standards for development, to meet demand for services, and to preserve the character of small town Texas.
Torry Edwards is the city manager of Terrell, Texas.
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