FY 2017 Annual Development Report

City of Southlake

Fiscal Year 2017 Annual Development Report

City of Southlake Council Members Mayor

Laura Hill

Mayor Pro Tem / Councilmember Place 4

Randy Williamson

Deputy Mayor Pro Tem / Councilmember Place 2

Shawn McCaskill

Councilmember Place 1

Shahid Shafi

Councilmember Place 3

Chad Patton

Councilmember Place 5

John Huffman

Councilmember Place 6

Christopher Archer

City of Southlake Staff City Manager

Shana K. Yelverton

Assistant City Manager

Benjamin E. Thatcher

Assistant City Manager / Director of Economic Development and Tourism

Alison D. Ortowski

Chief Financial Officer

Sharen Jackson

Sr. Director of Planning and Development Services

Kenneth M. Baker

Table of Contents Introduction....................................................................4 The introduction explains the purpose of the annual report document, highlighting its contents.

Southlake At A Glance.................................................5 This section provides a brief informational overview of the City of Southlake.

Economic Overview........................................................7 This section provides a few highlights of the Southlake economy.

Understanding Development.....................................15 This section explains the development process in the City of Southlake as well as introduces the Planning and Development Services Department.

Development Highlights............................................23 The Development Highlights section focuses on development activity within the City during fiscal year 2017. Throughout this section are charts and graphs illustrating trends in the number of permits processed.

Valuation.........................................................................31 This section of the Annual Report provides updated numbers related to City valuation and taxable value.

Revenue.............................................................................37 This section of the Annual Report highlights revenue trends in selected areas over the last five fiscal years.

Introduction The following information represents the City’s Annual Development Activity Report published by the City of Southlake. Each section within this report focuses on development-related activity in the City, ranging from the number of sign permits processed to the total commercial square footage permitted within Fiscal Year 2017; the Fiscal Year 2017 reporting period is October 1, 2016 through September 30, 2017.

Much of the information within the Annual Report mirrors information highlighted within the City’s Fiscal Year 2017 Adopted Budget. The intent of this report is to compliment the budget, with updated charts and tables reflecting all four quarters of the City’s fiscal year. Data within this report is gathered and assembled throughout the year by multiple departments and divisions within the City of Southlake.

Southlake At A Glance This section provides a brief informational overview of the City of Southlake.

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S o u t h l a k e At A G l a n c e

• • • •

2017 population projection of 29,440 Projected build-out of 34,188 2016 average people per household of 3.15 2017 median household income of $208,848

• Southlake Carroll has a 100% Graduation Rate • 68% of residents 25 years and older have a bachelor’s degree or higher • 22.5 square miles • Located 5 miles from DFW International Airport • Located 8 miles from Fort Worth Alliance Airport

• “AAA” City Bond Ratings from Standard and Poor’s and Fitch IBCA • 8.25% total sales tax rate

DID YOU KNOW?

• 78% of Southlake served by the Carroll Independent School District • Four private Montessori schools • Other districts serving Southlake include: Northwest ISD, Keller ISD and GrapevineColleyville ISD

8%

35%

57%

Southlake Residents 65 Years of Age or Older

Southlake Residents Between the Ages of 20 and 64 6

Southlake GIS maintains a database of 11,376 parcels, 12,326 structures, 3,822 sanitary sewer manholes and 245 miles of roadway!

Southlake Residents Under 10 Years of Age

www.CityofSouthlake.com

Economic Overview This section provides a few highlights of the Southlake economy.

Economic Overview Southlake Office and Retail Overview* • Total existing office space: 3,754,146 sq. feet • Office space vacancy rate: 24.0% --One vacant office building = 379,899 sq. feet • Total retail space: 3,937,299 sq. feet • Retail space vacancy rate: 7.8%

Top Non-Residential Taxpayers • Town Square Ventures LP • Verizon Wireless • Southlake Town Square Grand Avenue LP • Carroll/1709 LTD • Wyndham Properties LTD

DFW Office and Retail Overview* • Office space vacancy rate: 14.4% • Retail space vacancy rate: 4.8%

Labor Pool Ages 20-64 --Within 5 miles of Southlake: 66,842 --Within 10 miles of Southlake: 266,944 --Within 20 miles of Southlake: 1,435,099

Unemployment Rate • 3.5% is the July/August 2017 Average

• 54 new businesses opened in Southlake during FY 2017 • 192 Certificates of Occupancy Issued during FY 2017**

Top 10 Employers in Southlake

1. Sabre Holdings - 2. Carroll ISD - 3. Keller Williams - 4. Gateway Church - 5. Verizon Wireless - 6. City of Southlake - 7. Central Market - 8. Hilton Southlake - 9. Texas Health Harris Methodist Southlake - 10. Methodist Hospital -

3,545 Employees 1,115 Employees 715 Employees 613 Employees 585 Employees 418 Employees 395 Employees 224 Employees

201 Employees 200 Employees

Employment by Occupation Managerial/Professional

12.19% 30.65% 15.25%

Service Occupations Sales & Office Construction/Maintenance Production/Transportation

*Office and Retail data provided by CoStar **Includes Reoccupancy, commercial remodels and new commercial occupancies

28.69%

11.22%

Other (not illustrated) < or = 2.00%

3,545

Employees at Sabre Holdings, making it the largest employer within the City of Southlake 8

www.CityofSouthlake.com

Economic Overview Residential Information The City of Southlake receives updates about the residential housing market from North Texas Real Estate Information Systems, Inc (NTREIS). The Annual Report for FY 2017 contains residential housing market information based on the dates December 1, 2016 - November 30, 2017 from NTREIS. Given the use of different sources, information may differ in this document from what was posted throughout FY 2017 in the quarterly updates, to what was included in the FY 2017 Annual Report and FY 2018 Budget.

• Total number of home sales during 2017: 633 • % Change in home sales vs. the prior year: 11.8% • 2017 average home sales price: $815,563 • % Change in average home sales price vs. prior year: 7.4% • Months inventory: 3.4 • % Change in months inventory vs. prior year: -15% • Average price per square foot 2017: $191 • Average price per square foot 2016: $178 • Number of new house finals* in FY 2017: 30

633

Home Sales within Southlake during 2017 *Final inspection leading to issuance of a Certificate of Occupancy allowing homeowner to move-in to the structure

www.CityofSouthlake.com

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Economic Overview Southlake Residential Subdivision Information The map below identifies the major subdivisions within the City of Southlake. For the purposes of this map, only residential subdivisions are reflected, not commercial subdivisions. Major residential subdivisions within this map refer to any parcel of land that has been reconfigured or subdivided into multiple, smaller, and generally symmetrical parcels of land specifically for the purpose of constructing single-family housing. There are individual tracts of land, some platted, others unplatted, that are not highlighted on this map. The subdivisions listed below were planned and subdivided as a unit. There are currently 156 subdivisions that fit this definition of major residential subdivision within Southlake. The corresponding table on the following three pages highlights the subdivisions identified on the map below, and provides additional information regarding the total lots within each residential subdivision, as well as lot size data.

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Economic Overview Ref # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Subdivision Name ADAMS ADDITION AUTUMN CREEK BRENTWOOD ADDITION BRIARWOOD ESTATES BRITTANY PLACE CAMBRIDGE PLACE & CAMBRIDGE PLACE EAST CAMDEN PARK CARILLON CARMEL BAY CARROLL MEADOWS CEDAR CREEK PLANTATIONS CEDAR OAKS ESTATES CHAPEL DOWNS CHELSEA PARK CHESAPEAKE PLACE CHIMNEY HILL CIMARRON ACRES CLARIDEN RANCH CONTINENTAL PARK ESTATES COUNTRY WALK COVENTRY MANOR CROSS TIMBER HILLS DIAMOND CIRCLE ESTATES DOVE ACRES DOVE ESTATES EAST HAVEN ADDITION EDWARDS PARK EMERALD ESTATES ESTANCIA - 1 developed lot ESTES PARK EVERGREEN ESTATES FOX HOLLOW FOXBOROUGH GARDEN ADDITION GINGER CREEK ESTATES HARBOR OAKS HEATHERWOOD ESTATES HIGH POINT HIGHLAND ESTATES HIGHLAND OAKS HILLSIDE ESTATES HILLTOP ADDITION HILLWOOD ESTATES

Total Lots 7 7 9 22 10 154 14 404 9 10 15 39 106 16 83 81 22 112 69 55 100 197 66 31 109 21 2 49 13 178 13 18 64 15 14 49 16 22 17 27 15 15 15

www.CityofSouthlake.com

Lot Size (Sq Ft.) Smallest Average Largest 42,929 49,033 79,871 41,312 47,840 64,147 28,434 34,125 41,488 21,786 42,114 58,613 42,753 48,263 54,289 17,667 22,335 36,260 16,044 18,577 24,320 5,172 12,138 34,350 42,969 46,535 48,639 43,301 47,577 68,777 42,586 51,684 68,968 42,589 73,925 258,315 18,919 22,395 42,086 12,894 15,782 20,759 14,346 18,677 29,003 19,219 23,532 37,585 42,404 52,239 77,070 39,310 45,607 89,677 15,783 47,617 224,755 19,661 25,129 62,648 20,667 33,247 81,569 177,641 39,620 50,311 31,153 45,598 89,475 41,103 45,727 75,090 7,276 11,284 17,151 6,914 17,361 128,722 35,903 40,177 44,451 35,913 46,160 72,616 11,475 13,581 19,202 14,653 20,888 91,264 19,862 22,023 31,147 19,295 27,626 47,762 19,529 25,621 71,042 41,910 46,712 58,137 44,042 56,186 118,741 60,722 116,437 443,268 38,993 51,401 69,577 21,100 31,098 140,254 39,247 43,854 48,637 14,973 17,664 43,609 43,397 48,927 62,229 40,084 59,428 112,179 42,494 46,379 59,988

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Economic Overview Ref # 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 12

Subdivision Name HUDSON BAY ESTATES HUGHES ADDITION HUNTERS RIDGE HUNTWICK ESTATES HUSE HOMEPLACE INDIAN CREEK ESTATES JELLICO ESTATES JOHNSON PLACE ESTATES KIMBALL CIRCLE ESTATES KIMBALL HILLS KIRKWOOD HOLLOW LA MIRADA LAKE CREST ADDITION LAKEWOOD ACRES LAKEWOOD RIDGE ADDITION LAURELWOOD PARK LOCH MEADOWS ESTATES LONESOME DOVE ESTATES MEADOW OAKS MIRACLE POINTE MISSION HILL ESTATES MONTICELLO MONTICELLO ESTATES MOSS FARMS MYERS MEADOW NAPA VALLEY ADDITION NAPA VALLEY ESTATES OAK BEND ESTATES OAK HILL ESTATES OAK POINTE OAK TREE ESTATES OAKS ADDITION OAKWOOD ESTATES OAKWOOD POND OLD ORCHARD COUNTRY ESTATES PALOMAR ESTATES PARK PLACE ADDITION PATTERSONS POND PHEASANT RIDGE ADDITION PRINCETON PARK QUAIL CREEK ESTATES RAINFOREST ADDITION RANDOL MILL ESTATES RAVEN BEND RAVENAUX PLACE REGAL OAKS ADDITION RIDGEVIEW AT SOUTHLAKE

Total Lots 6 2 19 16 6 18 34 54 5 19 150 6 51 39 38 27 24 150 11 13 62 102 117 13 268 14 34 11 75 28 123 8 23 4 15 33 39 14 9 73 50 10 22 13 20 20 31

www.CityofSouthlake.com

Lot Size (Sq Ft.) Smallest Average Largest 85,343 115,231 192,564 43,035 68,597 94,159 40,388 44,316 48,700 33,591 64,964 83,268 87,861 120,032 172,739 39,602 47,087 86,783 41,779 83,870 305,525 17,075 20,161 27,711 29,069 36,993 54,813 20,017 22,772 60,364 15,484 23,464 63,521 42,767 65,553 128,239 19,591 22,812 36,860 42,021 62,866 183,582 45,500 88,367 242,160 37,455 46,194 125,477 43,137 50,190 84,313 12,179 17,185 63,077 90,707 136,970 178,016 19,058 23,227 39,609 37,842 49,486 109,493 19,688 26,157 84,905 14,832 18,783 30,065 42,738 44,178 46,805 12,911 15,548 31,776 19,003 20,183 21,519 17,417 21,745 32,541 20,592 21,795 23,479 18,553 20,922 31,552 19,274 25,104 35,378 19,725 22,088 34,540 12,494 15,463 18,916 43,141 51,465 66,193 49,464 60,279 71,354 65,295 228,654 435,325 20,299 27,021 56,350 19,722 22,527 30,999 20,227 33,829 58,075 40,774 44,880 47,203 19,376 21,692 36,168 41,331 65,609 170,683 44,361 58,659 98,568 41,639 49,681 59,707 38,642 44,883 52,411 41,358 49,764 102,435 47,389 108,356 39,828 9,341 12,294 17,725

Economic Overview Ref # 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137

Subdivision Name RIDGEWOOD ROYAL OAKS ADDITION SADDLEBACK RIDGE ESTATES SADDLECREEK ESTATES SANDLIN MANOR SHADOW CREEK ADDITION SHADY LANE SHADY OAKS SIENA SIMMONS ADDITION SOUTH HOLLOW SOUTH LAKE PARK SOUTH VILLAGE AT WATERMERE SOUTHLAKE ESTATES SOUTHLAKE GLEN SOUTHLAKE HILLS & SOUTHLAKE HILLS EAST SOUTHLAKE MEADOWS SOUTHLAKE WOODS SOUTHRIDGE LAKES SOUTHVIEW SPRING OAKS ADDITION ST. EMILION ADDITION STANHOPE ADDITION STONE LAKES STONEBURY STRATFORT GARDENS STRATFORT PARC SUMMERPLACE ADDITION TEALWOOD ADDITION THE BROWNSTONES THE CLIFFS AT CLARIDEN RANCH THE DOMINION THE ENCLAVE THE LAKES OF LA PALOMA THE LAKES ON DOVE THE RESERVE OF SOUTHLAKE THE TRAILHEAD ADDITION THE WOODS TIMARRON * TIMBER LAKE TIMBERLINE ESTATES TORIAN PLACE TRAIL CREEK ADDITION TRIPLE C RANCH TUSCAN RIDGE TWIN CREEKS ADDITION UNION CHURCH ESTATES

Total Lots 59 15 32 4 21 11 15 149 43 14 56 46 33 10 39 80 60 129 384 76 1 14 13 335 32 14 23 42 15 76 55 55 13 14 7 24 27 8 1396 303 15 12 22 58 57 20 3

www.CityofSouthlake.com

Lot Size (Sq Ft.) Smallest Average Largest 19,543 22,260 30,611 39,017 47,476 53,900 41,559 45,519 61,144 89,651 110,589 135,178 19,995 25,964 57,561 42,296 44,481 46,638 42,396 53,366 128,521 14,738 20,747 33,117 19,819 22,798 33,701 43,342 58,148 159,418 19,512 22,859 35,237 10,075 34,831 100,400 7,412 10,209 17,734 78,379 83,730 86,228 9,937 12,032 21,565 18,972 22,029 31,416 15,879 26,070 41,751 18,220 27,734 58,913 16,505 23,103 68,989 17,778 22,556 31,624 269,001 269,001 269,001 41,128 48,143 107,749 41,946 46,934 86,033 12,279 19,571 609,297 16,536 22,918 31,879 20,166 23,465 27,600 19,924 23,016 39,575 9,605 12,945 24,494 9,783 10,166 14,329 1,922 3,361 7,063 19,372 26,308 66,385 19,235 23,417 34,689 42,118 45,398 58,058 21,217 27,150 59,731 45,540 55,402 64,500 41,165 48,894 92,922 19,581 21,495 29,847 67,747 90,154 121,565 5,734 16,061 68,355 12,513 16,559 28,580 15,052 64,301 150,714 23,328 27,881 35,294 44,103 63,021 93,849 41,651 44,389 55,506 7,769 8,776 15,585 48,177 60,839 37,802 48,900 67,937 103,439 13

Economic Overview Ref # 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156

Subdivision Name VERANDAS AT SOUTHLAKE VERMILION VERSAILLES VILLAS AT HIDDEN KNOLL VILLAS DEL SOL VISTA TRAILS WAKEFIELD ADDITION WESTWYCK COURT ADDITION WESTWYCK HILLS WHISPERING DELL ESTATES WHITE CHAPEL PLACE ADDITION WILMINGTON PARK WIMBLEDON ESTATES WINDING CREEK WINFIELD ESTATES WINGATE HILL WOODBURY ADDITION WOODLAND HEIGHTS WORTHING ADDITION

Total Lots 38 14 148 38 9 70 7 3 41 38 12 19 17 74 12 24 9 32 9

Lot Size (Sq Ft.) Smallest Average Largest 9,828 11,513 19,227 42,897 43,972 45,124 14,203 18,928 34,762 10,190 12,203 17,321 41,837 44,693 46,721 19,695 22,703 27,764 43,466 44,356 45,643 42,921 46,272 48,442 23,002 37,010 107,232 42,072 57,543 105,247 8,073 84,629 256,089 18,991 20,633 29,030 38,719 45,763 53,025 14,912 16,730 25,871 18,971 21,812 25,670 42,848 46,997 93,362 20,979 22,879 25,778 38,262 66,933 158,503 18,980 27,423 35,823

* The Timarron development is composed of multiple subdivisions, all under the general heading of 'Timarron'.

Sample names are Timarron-Brenwyck, Timarron-Wyndsor Grove, Timarron-Northwood Park, and many others.

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Understanding Development This section explains the development process in the City of Southlake as well as introduces the Planning and Development Services Department (PDS), and provides insight into work plan initiatives for the four divisions of PDS.

Un d er s ta n d i n g De v elop m en t Overview of the Development Process in Southlake Pre-Application / Southlake 2035 Corridor Planning Committee

Before an application is submitted to the City of Southlake Planning and Development Services (PDS) department, potential applicants will often meet with staff to review their proposals in accordance with the Cityâ&#x20AC;&#x2122;s adopted development ordinances, such as the Zoning Ordinance, Subdivision Ordinance, and more. Another opportunity for feedback early in the process is for an applicant to schedule a meeting with the Southlake 2035 Corridor Planning Committee. This City Council appointed committee meets on an as-needed basis, typically to discuss development proposals along the Cityâ&#x20AC;&#x2122;s major thoroughfares; SH 114, FM 1709 and FM 1938.

Application Submittal

Once ready, the applicant will submit a proposal to PDS for review.

During FY 2017, PDS processed 153 development applications, including Site Plans, Specific Use Permits, Comprehensive Plan Amendments, and Plats.

Development Review Committee (DRC)

The DRC consists of multiple City departments and divisions such as the

Fire Department, Public Works Engineering, Building Inspections and Planning, whose goal is to comprehensively analyze development proposals against all applicable code requirements before a project moves forward in the development process. DRC met 18 times during FY 2017.

Southlake Program for the Involvement of Neighborhoods (SPIN)

SPIN Town Hall Forums represent a unique opportunity for applicants and Southlake residents to meet for a Q&A about projects of interest. Although beneficial for all, this does not represent a required step in the development process. 18 SPIN Town Hall Forums were held during FY 2017.

Legislative Action

The final steps in the entitlement process include meeting with the Planning & Zoning Commission (P&Z) and City Council. P&Z provides a recommendation on an application to City Council. City Council is the final legislative authority on all development proposals. Depending on the project type, an item may require one or two meetings at City Council.

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Un d er s ta n d i n g De v elop m en t Planning for the Future: The Southlake 2035 Comprehensive Plan The Southlake Comprehensive Plan is being updated! This update, Southlake 2035 follows the Southlake 2030 plan, of which the last new element was adopted in 2015. Per City charter, each element is to be updated every four years. A few Southlake 2035 plan elements have already been adopted by City Council. The recommendations adopted within each master plan element helps to steer policy, budget and work plan decisions by the City of Southlake. There are hundreds of recommendations throughout all of the adopted master plan documents, and City staff works diligently to ensure these items are completed per their established implementation priority.

Adopted Southlake 2035 Plan Elements Economic Development Master Plan

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Newly Adopted Southlake 2035 Recommendations to Date

Tourism Master Plan SH 114 Corridor Plan & FM 1709 - FM 1938 Corridor Land Plan

Pictured Directly Above: The Southlake 2035 Pictured Middle: The Southlake 2035 Corridor Corridor Planning Committee held an open house in Planning Committee meets with City staff to develop the April 2017 for the SH 114 Corridor Land Use Plan. SH 114 Corridor Land Use Plan in February 2017. www.CityofSouthlake.com

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Un d er s ta n d i n g De v elop m en t Brief Snapshot of the Planning & Development Services Department The Planning and Development Services Department (PDS) is made up of four separate divisions overseen by the Senior Director of Planning and Development Services. These divisions include Planning, Building Inspections, GIS, and Code Enforcement. PDS involvement in development does not end with entitlement: the department stays involved in a project from initial approval through code enforcement. This page features some additional information about the makeup of these four divisions.

Administration Senior Director Deputy Director Assistant to the Director Administrative Secretary

Planning 2 Principal Planners 2 Planners Landscape Administrator

GIS GIS Analyst

Building Inspections Building Operations Manager Chief Building Official Deputy Building Official 3 Plans Examiners 2 Building Inspectors 2 Permit Technicians

Code Enforcement 2 Code Enforcement Officers Landscape & Zoning Inspector

Pictured Above: PDS Staff in September 2017 18

www.CityofSouthlake.com

Un d er s ta n d i n g De v elop m en t Planning & Development Services Awards and Recognition

Pictured Above: City Council Members Christopher Archer and Chad Patton and members of the Southlake Executive Leadership Team recognize Arbor Day in October 2017. In 2017 the City received Tree City USA status for the 20th consecutive year.

Pictured Above: PDS was recertified as a Platinum Scenic City in 2017, one of 13 Texas cities to receive this designation. PDS also received Planning Excellence recognition in 2017 for the 13th consecutive year.

Pictured Above: Mayor Laura Hill presents a proclamation to PDS for National Community Planning Month in October 2017. www.CityofSouthlake.com

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Un d er s ta n d i n g De v elop m en t Land Use in Southlake The large pie chart directly below illustrates the distribution of land uses by category in Southlake*. The three smaller pie charts below on this page illustrate the developed area (solid) versus undeveloped area (shaded lines) for two residential categories and the Public/Semi-Public land use category in Southlake.

1% 2% 2% 5%

Corps of Engineers Property

6%

100-Year Flood Plain

4%

4%

Industrial Low Density Residential

3%

Medium Density Residential

3%

Mixed Use Office Commercial Public Parks/Open Space

8%

Public/Semi-Public Regional Retail Retail Commercial Town Center

Developed 33%

Undeveloped *Excludes ROW Updated 5/5/17

29%

Low Density Residential

8%

10%

90%

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Medium Density Residential

Public/Semi-Public

2%

92%

98%

Land Use Category

Developed (Acres)

Undeveloped (Acres)

Low Density Residential

3713.37

419.79

Medium Density Residential

3329.70

304.99

Public/Semi-Public

637.77

12.88

www.CityofSouthlake.com

Un d er s ta n d i n g De v elop m en t Commercial / Mixed Use Land Use in Southlake The six pie charts below illustrate the developed area (solid) versus undeveloped area (shaded lines) for additional land use categories in the City of Southlake.

Industrial

Mixed Use

Town Center

11%

20% 47% 53%

80%

89% Developed Undeveloped *Excludes ROW Updated 5/5/17

Retail Commercial

Office Commercial

9%

23%

77%

Regional Retail

1%

91%

99%

Land Use Category

Developed (Acres)

Undeveloped (Acres)

Mixed Use

477.20

528.94

Industrial

324.62

81.91

Town Center

154.78

18.66

Office Commercial

248.43

75.14

Retail Commercial

223.76

21.85

Regional Retail

114.97

1.14

www.CityofSouthlake.com

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Un d er s ta n d i n g De v elop m en t

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Development Highlights The Development Highlights section focuses on development activity within the City during fiscal year 2017. Throughout this section are charts and graphs illustrating trends in the number of permits processed.

Development Highlights A Note from the Senior Director of Planning & Development Services It is hard to believe that Fiscal Year 2017 has already passed! I am proud of the accomplishments of the department, which included kicking off the next phase of the Cityâ&#x20AC;&#x2122;s Comprehensive Plan, Southlake 2035, processing development applications, completing building inspections, responding to code enforcement requests, and everything else in between. The Annual Development Report provides a small glimpse into the daily activities of the department, highlighting projects of interest and giving some statistics that help tell the Southlake development story. I am happy to present this report to you as a supplement to the Cityâ&#x20AC;&#x2122;s adopted budget, to showcase some of the development trends we have seen over time.

Pictured Below: Sr. Director of Planning and Development Services, Ken Baker. Pictured Right: Southlake City Council.

Photo taken November 2017

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Pictured Above: Aerial photos of the TD Ameritrade construction. Image on the left is from November 2016, and the image to the right was taken November 2017. www.CityofSouthlake.com

Development Highlights Brief Updates on Major Developments in Southlake As evidenced by the permitting numbers during FY 2016, several large development projects were either approved for construction, or commenced/continued building construction. FY 2016 and even 2017 featured activity along the SH 114 Corridor with the construction of TD Ameritrade and other developments such as Southlake Office Plaza at SH 114 and N. White Chapel, and Harborchase at SH 114 and Highland. This page provides some additional insight into the progress of a few major developments.

TD Ameritrade

In April 2016, City Council approved a Site Plan for a TD Ameritrade regional campus consisting of an approximately 355,000 square foot, three-story office building and a five-level parking garage with 2,014 spaces on approximately 78.617 acres. The project will be addressed off of Kirkwood Blvd, near SH 114. Portions of the building and parking garage are still left to be completed. However, construction on the campus is nearly complete, and expected to be finished in early 2018.

Crescent Heights

On June 6, 2017 City Council approved a Zoning Change and Development Plan for Crescent Heights located at the northwest corner of Southlake Blvd. and Shady Oaks Dr. The approved plan changed the zoning on the property from Agricultural (AG) and Single Family Residential (SF-1A) to Residential Planned Unit Development (R-PUD) and includes 57 residential lots on approximately 57.9 acres. At this point, construction has not yet begun on this residential subdivision.

The Marq Phase 2

In the fall of 2018, the long awaited Champions Club at The Marq Southlake will be opening.

Centered around a 6,700 square foot fitness center and indoor pool which includes a lazy river, childrenâ&#x20AC;&#x2122;s play area, slides, spa and sauna. Membership presales will begin in summer 2018 with grand opening events estimated for October 2018. The Southlake Tennis Center in Bicentennial Park is currently being expanded as well, and will include two covered tennis courts when completed. www.CityofSouthlake.com

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Development Highlights FY 2017: Planning and Development Services By the Numbers

223 New 269 Event Signs Placed Residential Around Permits the City of Issued Southlake

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Over 19,000 Total Inspections Conducted by PDS

301 Code Enforcement Cases Worked

3,851 Pageviews & 2,570 Unique Pageviews for the PDS Development Blog

103 Public Hearing Signs and 133 SPIN Signs Placed

3,311 Notification Letters Sent to Southlake Property Owners by Planning

137 Pool Permits Issued

3,156 Building Permits Issued

499 Illegally Placed Signs Removed by Code Enforcement

www.CityofSouthlake.com

Development Highlights New Construction Building Permits New Residential Building Permits

New Commercial Building Permits

300 272

250 223

200

197

188

160

No. of Permits 150

100

50

42 27

20

30

21

0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The graph above represents new construction building permits in Southlake between FY 2013 through FY 2017. The number of residential building permits was exceptionally high in FY 2015 due to activity in the Carillon, Winding Creek and Highland Oaks subdivisions, as well as activity for the residential brownstones in Southlake Town Square. Note: new construction building permits (commercial / residential) do not represent additions or renovations to existing buildings or residences.

160

New Residential Permits in FY 2017

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New Commercial Permits in FY 2017 www.CityofSouthlake.com

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Development Highlights New Construction Permit Value Residential Construction Permit Value

Commercial Construction Permit Value

$196,895,155

$200,000,000

$178,247,281

$155,805,084

$150,000,000 $131,159,495

$129,587,892

Dollars $100,000,000 $84,028,745

$81,215,734

$50,000,000

$42,543,750 $32,503,544 $17,976,714

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The new construction permit value represents the valuation of the permit at the time of permit issuance, not including the valuation of the land on which the structure is located. This is the estimation of the cost to build the house or commercial structure before actual construction takes place. The increase in commercial permit value can be attributed to permits issued for the TD Ameritrade and Granite Place projects. These projects each consist of a building and parking garage, and the combined estimated valuation of these structures is $121,517,885.

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Development Highlights Square Footage Permitted Residential Square Footage Permitted

Commercial Square Footage Permitted

2,000,000 1,763,654

1,800,000

1,600,000

1,522,004

1,400,000

1,313,861

1,200,000

1,286,879

1,135,145 1,038,627

981,476

Square Feet 1,000,000 800,000 630,277

600,000 376,682

400,000

200,000

180,387

0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The chart above represents the total square footage permitted within the City in terms of residential and commercial structures. The spike in FY 2016 on this and other charts is largely due to the TD Ameritrade and Granite Place projects. The combined size of the TD Ameritrade building and parking garage, and Granite Place building and parking garage is approximately 1,288,513 square feet. In FY 2017, the Building Inspections department processed more interior finish-outs as a result of the heavy permitting last fiscal year. Permits to renovate or finish-out the inside of a building do not count towards new residential or new commercial square feet permitted. The table below combines residential and commercial square feet permitted over the last five years to highlight the total square footage permitted within the City.

Fiscal Year

Total Residential and Commercial Square Footage Permitted

% Increase in Residential and Commercial Square Footage Permitted from Year to Year

2013

1,219,014 SF

1.7%

2014

1,765,422 SF

44.8%

2015

2,835,865 SF

42.2%

2016

3,050,533 SF

7.5%

2017

1,358,158 SF

-55.4%

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Development Highlights Sign Permits Issued 400

352

342

320 306

300

286

No. of Permits 200

100

0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The Planning and Development Services Department is responsible for handling the permitting of signage within the City. The three types of sign permits in Southlake are attached, monument, and temporary. As can be seen from the charts, this has been a relatively stable permitting source over the past five years, with the average number of sign permits issued being approximately 321 per year.

306

Total Sign Permits were Issued in FY 2017

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Valuation This section of the Annual Report provides updated numbers related to City valuation and taxable value.

Va l u at i on Valuation Added Residential Valuation Added

Commercial Valuation Added

350,000,000

$291,969,208

300,000,000

250,000,000

200,000,000 Dollars 150,000,000 $128,244,794

$130,852,569

$123,457,784

100,000,000

50,000,000

$58,999,045 $50,964,049

$70,273,066

$77,660,083 $50,456,817

$5,295,848

0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

This chart illustrates the trends in residential, and commercial valuation added since FY 2013. Valuation added is not the same as residential and commercial permit value as seen on page 28 of this report. Valuation added represents â&#x20AC;&#x153;on the groundâ&#x20AC;? buildings that have been constructed, and the variance in permit value and valuation added is due to timing. Between FY 2016 and FY 2017, the City of Southlake saw a percent increase in residential valuation added of 123%, and a 144% increase in commercial valuation added.

$415,426,992 Total Residential and Commercial Valuation Added in FY 2017

32

www.CityofSouthlake.com

Va l u at i on Total Residential Valuation $5,000,000,000

$4,802,182,185

$4,800,000,000

$4,600,000,000

$4,450,827,827

$4,431,048,616

FY 2015

FY 2016

$4,400,000,000 Dollars $4,200,000,000

$4,142,542,414

$4,014,442,625

$4,000,000,000

$3,800,000,000

$3,600,000,000 FY 2013

FY 2014

FY 2017

Fiscal Year

The information in the chart above represents the changes in total residential valuation since FY 2013. The slight drop in total residential valuation from FY 2015 to FY 2016 is due to residential exemptions (homestead, disability, over-65, veterans) which increased by 170% during that time. Residential valuation does not include commercial businesses. Between FY 2016 and FY 2017 residential growth in the City increased by 8%.

$4,802,182,185 Total Residential Valuation in FY 2017

www.CityofSouthlake.com

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Va l u at i on Total Non-Residential Valuation $2,500,000,000

$1,975,216,626

$2,000,000,000 $1,821,263,742 $1,707,352,534

$1,500,000,000

$1,438,015,372

$1,483,892,470

Dollars

$1,000,000,000

$500,000,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

Non-residential valuation represents the total value of property within Southlake, less all residential valuation. Total non-residential valuation includes offices, hospitals, and other commercial entities. The chart above illustrates changes in the value of non-residential property in Southlake between FY 2013 and FY 2017. Between FY 2016 and FY 2017 commercial growth (valuation) in the City increased by 8%.

$1,975,216,626 Total Non-Residential Valuation in FY 2017

34

www.CityofSouthlake.com

Va l u at i on Total Assessed Value and Taxable Value Comparison Total Assessed Value

Total Taxable Value

$9,000,000,000 $8,269,475,160

$8,000,000,000 $7,322,599,520

$7,000,000,000 $6,422,291,913

$6,653,878,247

$6,760,119,917 $6,368,901,046 $5,958,098,087

$6,000,000,000 $5,452,457,997

$5,626,431,884

$5,785,322,918

$5,000,000,000 Dollars $4,000,000,000

$3,000,000,000

$2,000,000,000

$1,000,000,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The table above provides a comparison of property values since FY 2013. Note: the taxable value shown in the chart is net of the incremental taxable value assigned to the Tax Increment Reinvestment Zone (TIRZ) #1.

For FY 2017, TIRZ #1 taxable value was $408,497,765. The difference between assessed value and taxable value is primarily due to exemptions, such as homestead, disabled, over-65 exemption and over-65 tax freeze.

$8,269,475,160 Total Assessed Value in FY 2017

$6,368,901,046 Total Taxable Value in FY 2017

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Va l u at i on

36

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Revenue This section of the Annual Report highlights revenue trends in selected areas over the last five fiscal years.

Revenue Property Tax Collected - General Fund $25,000,000 $22,628,164

$20,000,000 $18,523,069

$19,193,800

$19,446,457

$20,095,677

$15,000,000

Dollars

$10,000,000

$5,000,000

$0 FY 2013

FY 2014

FY 2015 Fiscal Year

FY 2016

FY 2017 *FY 2017 Unaudited

The largest single revenue source for the City of Southlake is the Ad Valorem, or Property Tax. The chart below illustrates the trend in property tax collection in Southlake between FY 2013 through FY 2017. Between FY 2013 and FY 2017 the City of Southlake saw a percentage increase of 22% in the amount of property tax collected.

$22,628,164

Collected in Total Property Tax during FY 2017 38

www.CityofSouthlake.com

Revenue Total Sales Tax Collected $35,000,000

CCPD

SPDC

CEDC

General Fund

$30,000,000

$25,000,000 $15,106,928

$20,000,000 Dollars

$14,365,925

$14,876,208

$13,342,819 $11,497,962

$15,000,000

$7,440,726

$10,000,000

$5,421,104

$5,613,664

$6,571,836 $5,663,175

$5,000,000 $5,571,465

$6,516,603

FY 2014

$7,578,446

$1,803,605

$1,879,292

$7,335,506

$0 FY 2013

$7,318,490

FY 2015 Fiscal Year

FY 2016

FY 2017 *FY 2017 Unaudited

The sales tax is made up of four sources: The Crime Control and Prevention District (CCPD), Southlake Parks and Development Corporation (SPDC), Community Enhancement Development Corporation (CEDC), and the General Fund. The CCPD 1/8% tax ensures that funds are spent on programs and capital purchases that will reduce crime, increase public safety and maintain a high quality of life in Southlake. SPDC administers an additional 1/2% sales tax and applies it towards parks-related capital projects. The 3/8% CEDC Type A sales tax is spent on the construction and operation of The Marq Southlake facility, as well as pursuing the recommendations of the Economic Development Master Plan in accordance with state law. The General Fund is represented by 1% of every dollar spent within City limits. The chart above illustrates the amount of sales tax collected from the CCPD, SPDC, CEDC, and General Fund throughout FY 2017. Money from the SPDC has been utilized to fund projects at several parks within the City. Note: FY 2016 is the first year of the CEDC Type A sales tax.

$29,947,610

Total Sales Tax Collected During FY 2017 www.CityofSouthlake.com

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Revenue Sales Tax - General Fund $16,000,000 $15,106,928

$14,876,208 $14,365,925

$14,000,000

$12,000,000

$13,342,819

$11,497,962

$10,000,000

Dollars $8,000,000

$6,000,000

$4,000,000

$2,000,000

$0 FY 2013

FY 2014

FY 2015 Fiscal Year

FY 2016

FY 2017 *FY 2017 Unaudited

The second largest General Fund revenue source in the City of Southlake is the municipal sales tax. The City has, for the most part, seen an increase in the amount of sales tax collected since Fiscal Year 2013.

1% of every dollar spent within the City goes towards the general fund; this fund accounts for core City functions such as police, fire, engineering, planning, finance, and administrative operations. In addition to the 1% dedicated to the General Fund, an additional 1% is split between the CCPD, CEDC and SPDC.

$1.49 Billion Estimated Taxable Gross Sales in FY 2017

40

www.CityofSouthlake.com

Revenue Franchise Tax - General Fund $3,500,000 $3,327,739

$3,000,000

$2,955,114

$2,907,538

$2,841,024

$2,646,394

Dollars $2,500,000

$2,000,000

$1,500,000 FY 2013

FY 2014

FY 2015

FY 2016

Fiscal Year

FY 2017 *FY 2017 Unaudited

Another major revenue source for the City of Southlake includes franchise fees. Franchise fees represent revenue from private utility companies operating in the City. The chart above illustrates collection trends between FY 2013 and FY 2017. Based on the years illustrated in the trend analysis, FY 2015 generated the most revenue in franchise fees.

$2,907,538 Generated in Revenue from Franchise Fees in FY 2017

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41

Revenue Hotel Occupancy Tax Collected $1,400,000

$1,200,000

$1,164,922

$1,024,061

$1,000,000

$948,971

$974,467

$888,855

$800,000 Dollars $600,000

$400,000

$200,000

$0 FY 2013

FY 2014

FY 2015 Fiscal Year

FY 2016

FY 2017 *FY 2017 Unaudited

The Hotel Occupancy Tax (HOT) is authorized under the Texas Tax Code, Chapter 351. The City of Southlake adopted Ordinance No. 769 in February 2000, levying a 7% tax on room receipts. The tax on rooms at the Hilton in Town Square and the Cambria Southlake (as of 2017) provide the revenue to the City in this category. The first expenditures from this fund were made in FY 2008. The chart above illustrates collection trends from this revenue source between FY 2013 through FY 2017. Use of these funds is restricted, and planned expenses must be authorized uses under the Texas Tax Code, Chapter 351. The City partially funds the Public Art program from the HOT.

$1,164,922

Generated in Hotel Occupancy Tax Revenue in FY 2017 42

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Revenue New Residential & Commercial Construction Permit Fees Collected Residential Permit Fees

Commercial Permit Fees

$1,400,000.00

$1,325,405

$1,200,000.00

$1,014,558

$1,000,000.00

$1,032,334

$859,908 $820,000

$800,000.00

$770,964

$766,641

$701,355

Dollars

$632,342

$614,319

$600,000.00

$400,000.00

$200,000.00

$0.00 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

A large revenue source for the Cityâ&#x20AC;&#x2122;s General Fund comes from the fees associated with the issuance of building permits. As with the reduction in square footage permitted in the City, the nationwide economic climate likely had the same impact on permit fee collection. As can be seen in the graph above, the amount of permit fees collected through residential construction has fluctuated between FY 2013 and FY 2017. The dip in residential permit fees and commercial permit fees from FY 2016 to FY 2017 is a result of fewer new commercial and new residential construction permits issued during that time as shown on page 27 of this report.

Fiscal Year

Total Fees Collected from New Residential and Commercial Permits

2013

$1,315,654

2014

$1,590,964

2015

$2,046,892

2016

$2,185,313

2017

$1,398,983 www.CityofSouthlake.com

43

Revenue Sign Permit Fees Collected $40,000 $36,322

$35,000

$30,000

$33,576

$33,537 $30,207 $28,219

$25,000

Dollars $20,000

$15,000

$10,000

$5,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

As previously noted, the regulation of signage within the City is handled internally. Each permit has a specific permit fee associated, and the chart on this page highlights the revenue generated from processing sign permits.

The collection of fees from processing sign permits has been a relatively stable source of income over the years.

Over the five year period indicated on this chart fees collected from sign permit issuance average $32,372 a year.

$33,576

Collected in Fees from Processing Sign Permits during FY 2017 44

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Revenue Total Fees from Building Permits $3,000,000

$2,519,861

$2,500,000

$2,393,490

$2,000,000

$1,924,156 $1,733,747 $1,644,274

Dollars $1,500,000

$1,000,000

$500,000

$0 FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

Fiscal Year

The Planning and Development Services permits throughout the year. The previous permits and sign permits. The chart above as accessory buildings, pools, commercial

Department processes many different types of pages of this report highlight new construction includes fees collected from those sources, as well remodel, re-occupancy, MEP, reroof, and more.

$1,733,747 Collected in Fees from Processing Building Permits FY 2017

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45

Revenue

46

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