FY 2022 Annual Development Report

Council and Staff

City of Southlake Council Members

John Huffman - Mayor

Kathy Talley - Councilmember Place 1

Randy Robbins - Councilmember Place 2

Shawn McCaskill - Deputy Mayor Pro Tem/Councilmember Place 3

Ronell Smith - Councilmember Place 4

Amy Torres-Lepp - Councilmember Place 5

Randy Williamson - Mayor Pro Tem/Councilmember Place 6

City of Southlake Staff

Shana K. Yelverton - City Manager

Alison D. Ortowski - Assistant City Manager

Daniel Cortez - Director of Economic Development & Tourism

Sharen Jackson - Chief Financial Officer

Dennis Killough - Director of Planning & Development Services

Madeline Prater - Business Manager

5 SOUTHLAKE SNAPSHOT

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

6 ECONOMIC OVERVIEW

This section provides a few highlights of the City of Southlake economy.

10 UNDERSTANDING DEVELOPMENT

This section explains the development process in the City of Southlake as well as introduces the Planning and Development Services Department and associated Boards/Commissions.

22

NEW RESIDENTIAL DEVELOPMENT

This section focuses on residential development activity within the City of Southlake during fiscal year 2022.

24

NEW COMMERCIAL DEVELOPMENT

This section focuses on commercial development activity within the City of Southlake during fiscal year 2022.

26 VALUATION

This section provides updated numbers related to City of Southlake valuation and taxable value.

30 REVENUE

This section highlights revenue trends in selected areas over the last five fiscal years.

34 APPENDIX

45 CONTACT US

Note from the Senior Director of Planning and Development Services

Dennis Killough Director of Planning & Development Services

The Planning and Development Services Department is pleased to submit the Annual Development Activity Report for fiscal year 2022, which ended September 30, 2022. The department had numerous accomplishments throughout the year. City staff works hard to update the City’s Comprehensive Plan, process development applications, review building permits and issue permits, complete building inspections and respond to code enforcement requests. However, our work wouldn’t be possible without the support and leadership from our Mayor and City Council members, Planning and Zoning Commissioners, and various other city boards (ZBA, BBA, Corridor Planning Committee). In addition, our citizens play a vital role in working alongside our department to ensure we provide the highest quality of life for our residents, businesses and visitors.

The Annual Development Report provides a small glimpse into the daily activities of the department, highlighting projects of interest and giving statistics that help tell Southlake’s development story. I am happy to present this report to you as a supplement to the City’s adopted budget, to showcase some of the development trends we have seen over time.

Southlake Snapshot

POPULATION* - 31,770

CITY SIZE - 22.5 SQ. MILES CITY BOND RATING - AAA

% CITY DEVELOPED - 91%

BUILDING PERMITS ISSUED - 3,372

NEW COMMERCIAL VALUATION - 54M

CITY OF SOUTHLAKE CITY COUNCIL

Southlake City Council

NEW RESIDENTIAL VALUATION - 94M

*Population estimate from the North Central Texas Council of Governments

Top Row: Ronell Smith, Randy Robbins

Middle: Randy Williamson, Mayor John Huffman, Shawn McCaskill

Bottom Row: Kathy Talley, Amy Torres-Lepp

92% OF BUSINESS OWNERS SAY SOUTHLAKE IS A GOOD OR EXCELLENT PLACE TO DO BUSINESS.

92%

CONSUMER SALES

Economic Overview

LIFESTYLE CENTER COMMUNITY CENTER

POWER CENTER NEIGHBORHOOD CENTER

CLASS A MEDICAL OFFICE

TOTAL VALUATION ADDED IN SOUTHLAKE 94% 93%

$127,899,202 NEW RESIDENTIAL

79% 81%

83% 95%

CLASS B INDUSTRIAL FLEX CITY OF SOUTHLAKE PLANNING & DEVELOPMENT SERVICES | FY 2022 ANNUAL DEVELOPMENT REPORT 9

Development Process Timeline

Before an application is submitted, potential applicants will often meet with staff to review their proposals in accordance with the city’s adopted development ordinances, such as the Zoning Ordinance, Subdivision Ordinance, and more.

The Development Review Committee consists of multiple city departments (Fire, Public Works & Engineering, Planning & Development) whose goal is to comprehensively analyze development proposals against all applicable code requirements before a project moves forward in the development process.

The Corridor Planning Committee meets with developers on potential project applications to give initial feedback and provide land use recommendations that are consistent with the framework of the Southlake 2035 Comprehensive Plan.

SPIN Town Hall Forums represent an unique opportunity for applicants and Southlake residents to meet for a Q&A about projects of interest. While this is not a required step in the development process, city staff strongly encourages applicants to take advantage of this forum.

Once ready, the applicant will submit a proposal to the Planning & Development Services Department (PDS) for review. During FY 2021 PDS Department processed 138 development applications.

The final steps in the entitlement process includes meeting with the Planning & Zoning Commission (P&Z) and City Council. The P&Z Commission 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.

Southlake Comprehensive Plan

The Southlake Comprehensive Plan is a culmination of various plan elements that provide a vision for future development of Southlake for the next 20 years. City officials utilize these documents to guide decisions about the physical development of the city. Currently, the city is focusing on developing the Southlake 2035 Comprehensive Plan, which includes numerous master plan documents. The Recommendations adopted within each master plan element help steer policy, budget, and work plan decisions. 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 policy. To learn more about the Southlake Comprehensive Plan, visit our comprehensive planning web page at http://bit.ly/2SGmskI

COMPREHENSIVE PLAN MATRIX TEAM

The goal of the comprehensive planning matrix team is to further the understanding of the comprehensive plan in Southlake by championing its development and implementation. The team tracks comprehensive plan recommendations, ensures recommendations are incorporated into departmental work plans, and endeavors to increase the institutional knowledge of the comprehensive plan elements and their role in shaping the City. In FY2022, the team primarily focused on two areas: 1) consolidating the recommendations from the various plan elements into one database and developing a dashboard to track progress, and 2) assisting in the update of the Future Land Use Plan. In FY2023, the team will continue work on the recommendations dashboard to track implementation and ensure accountability, assist in the finalization of the Future Land Use Plan update, and create a comprehensive plan element schedule and implementation program.

UPCOMING COMPREHENSIVE PLAN ELEMENTS

Water, Wastewater & Stormwater Master Plans

Community Facilities Plan

Capital Projects

Technology Master Plan

PLANNING & DEVELOPMENT SERVICES CONTACT INFORMATION

1400 Main Street, Suite 310

Southlake, Texas 76092

P: (817) 748-8621

F: (817) 748-8077

http://bit.ly/359UsIH

MISSION STATEMENT

“To provide the community with exceptional guidance and quality service through strategic planning, development review, building & structure inspection, and code enforcement”

VISION STATEMENT

“To inspire the future physical development, economic prosperity, and quality of life for Southlake”

Planning & Development Services Overview

The Planning and Development Services Department is made up of three divisions overseen by the Senior Director of Planning and Development Services. These divisions include planning, building inspections and code enforcement.

Planning & Development Services Overview

Administrative Support

The administrative support side of Planning and Development Services assists in coordinating the department’s front counter operations (i.e. phone inquiries and visitors), managing the Planning and Zoning Commission meeting agendas and notices, and managing the Corridor Planning Committee meeting agendas and reports.

Development Review

The Planning and Development Services Department conducts development reviews to ensure all development proposals are in compliance with Southlake’s Zoning Ordinance, Subdivision Ordinance, and other development related ordinances before beginning the development process. In addition, city staff may facilitate meetings between potential applicants and representatives from other city departments to review potential development proposals.

Development Services

The Planning and Development Services Department provides development services to citizens and customers alike. City staff assists with citizen and customer inquiries regarding development cases, zoning regulations, and application procedures and also provides administrative support to the Planning and Zoning Commission and City Council.

Comprehensive Planning

The Planning and Development Services Department engages in comprehensive planning by creating and implementing the Southlake comprehensive plans, which are utilized to guide the future growth and development of Southlake. As part of the comprehensive planning process, city staff collaborates with other city departments to formulate Master Plan documents, such as the Land Use Plan, Public Arts Master Plan, Parks and Recreations Master Plan, Mobility Master Plan, and more.

Building Inspections

The City of Southlake’s Building Inspections division is housed in the Planning and Development Services Department. This division oversees the building phase of development, reviews building plans, processes and issues building permits, and performs building and structural inspections to ensure building code compliance is met.

Code Enforcement

The City of Southlake’s Code Enforcement division is housed in the Planning and Development Services Department. This division investigates, tracks, and coordinates zoning and code cases in the city, works with property owners to achieve compliance with city ordinances, and responds to and addresses all code enforcement issues and complaints (i.e. high grass, illegal signs, illegal dumping, drainage, etc.)

Awards

• Town Square designated as a Great Public Place by the American Planning Association Texas Chapter (2020)

• American Planning Association Texas Chapter Planning Excellence Award (18th consecutive year)

• Tree City USA Community (24th consecutive year

• 2022-2027 Platinum Scenic City Certification

Recognition

• Building Safety Month (May)

• National Community Planning Month (October)

• Arbor Day Celebration (November)

Awards & Recognition

Certified Scenic City 2022-2027

The City of Southlake was certified as a Platinum Texas Scenic City this past week. The award was announced October 6th at the Scenic City Annual Awards Reception in conjunction with the Texas Municipal League Annual Conference in San Antonio. The mission of the Scenic City Certification Program is to support and recognize Texas municipalities that implement high-quality scenic standards for public spaces. The Scenic City Certification Program provides a proven, highly regarded tool to Texas cities for assessment, evaluation, and recognition of infrastructure standards. The evaluation reviews every applicant’s existing zoning ordinance, code language and built environment in the following areas:

• Streetscape enhancement

• Parks, trails and open space

• Lighting Standards

• Design integrity

• Landscaping

• Sign control

• Litter and graffiti prohibition

• Utility and cable line programs

• Unique municipal feature and special programs

The Scenic City Certification Program (SCCP) was developed and implemented to establish a foundation of cohesive scenic standards and land planning practices that advance practices that demonstrate protection of environmentally sensitive areas and the provision of shared community spaces, parks, walkable sidewalks, and the scenic roadways. The “Platinum” designation is the highest designation that a City can obtain and is a reflection of City Council’s commitment and support to the planning process.

Boards & Commissions

Planning and Zoning Commission

The Planning and Zoning Commission is comprised of seven Southlake citizens who serve as an advisory board to City Council in regards to land use and zoning. The commission makes recommendations to City Council on matters concerning zoning and site plans, updates or amendments to the city’s Master Plan documents, public improvements, civic improvements, street changes, routing of public utilities, and strategic planning. The Planning and Zoning Commission typically meets on the first and third Thursday of each month at 6:30 p.m. in Southlake Town Hall.

2022 STATS

Planning and Zoning Commission Members

Daniel Kubiak, Chairman - Appointed 2013

Michael Forman, Vice Chairman - Appointed 2020

Michael Springer - Appointed 2003

Gina Phalen - Appointed 2018

Craig Rothmeier - Appointed 2016

Scott Dyche - Appointed 2019

Austin Reynolds - Appointed 2020

Corridor Planning Committee

16* 6

84 34

The Corridor Planning Committee meets on an ad hoc basis to give initial feedback to applicants on potential development cases to ensure the proposal is consistent with current zoning and future land use development as stated in the City’s Comprehensive Plan.

Corridor Planning Committee Members

Chad Patton, City Councilmember (former member)

Shawn McCaskill, City Councilmember

Kathy Talley, City Councilmember

Randy Robbins, City Councilmember

Amy Torres-Lepp, City Councilmember

Daniel Kubiak, Planning & Zoning Chairman

Michael Springer, Planning & Zoning Member

Michael Forman, Planning & Zoning Member

Austin Reynolds, Planning & Zoning Member

Gina Phalen, Planning & Zoning Member

Frances Scharli, Parks Board Member

Zoning Board of Adjustment

The Zoning Board of Adjustment is comprised of five regular members and four alternate members who serve as an appeal body for individuals seeking variances or special exemptions to the zoning ordinance or to a decision made by an administrative official enforcing the ordinance. The Zoning Board of Adjustment typically meets on the second and fourth Thursday of each month at 6:30 p.m. in Southlake Town Hall.

Jeff Medici, Chairman - Place 5

David Treichler, Vice Chairman - Place 2

Michael Quinones - Place 1

Trey Verbick - Place 3

Heather King - Place 4

Clinton Sneed - Alternate No. 1

Frank Bernardo - Alternate No. 2

Sridevi Vemulapalli - Alternate No. 3

Al Karmali - Alternate No. 4

*1

16* 29

The Building Board of Appeals is comprised of five Southlake citizens and two alternate members who serve on an advisory board to City Council in regards to making building code recommendations. This board meets on an ad hoc basis and hears appeals from citizens to reverse decisions made by the city’s Building Official regarding interpretation of building codes, contractor license revocations and building condemnations. In addition, the Building Board of Appeals makes official decisions regarding the appeals they hear.

David Carpenter, Chairman - Place 2

Terry Walls - Place 1

Cynthia Bishop - Place 3

Dawn Androsky - Place 4

Qasim Mushtaq - Place 5

Vacant - Alternate No. 1

Georgi Dye - Alternate No. 2

16 CUSTOMER SATISFACTION SURVEYS RECEIVED 93% SATISFIED CUSTOMERS 334 ONLINE QUESTIONS RECEIVED & ANSWERED

Land Use in Southlake

The pie chart below illustrates the distribution of land uses by category in Southlake. The data displayed in the chart and table were obtained in December 2022.

Major Development Projects

Construction Highlights

1

The Learning Experience - NW corner of River Oaks Dr. and W. Southlake Blvd. The Learning Experience will include a 10,000 sq. ft. single-story daycare center.

5

GMI Southlake - S. Nolen Dr. and Crooked Ln.

GMI Southlake will include 3 flex light industrial/corporate office buildings totaling approx. 58,780 sq. ft.

2

Mody Plaza - W. Southlake Blvd. and S. Village Center Dr. Mody Plaza will include an approx. 13,000 sq. ft. multi-tenant shopping center.

6

Granite Place Phase 2 - State St. and E. State Highway 114

Granite Place Phase Two will include a fivestory, approx. 151,000 sq. ft. office building adjacent to the existing Granite Place One building. The project will also include a 5-level parking structure.

3

The Conservation - Burney Ln. and Southlake Park Dr.

The Conservation will include 8 residential lots on approx. 13.1 acres.

4

Methodist Southlake Hospital - E. State Highway 114

Methodist Southlake Hospital Emergency Department Expansion will include a onestory, approx. 6,000 sq. ft. addition to the existing hospital building to provide new nuclear medicine facilities.

7

XO Marriage Center - E. Kirkwood Blvd. and Grace Ln.

The XO Marriage Center will include a threestory, approx. 32,190 sq. ft. building with office, assembly, and studio uses.

8

Keen Homeplace - Intersection of E. Dove Rd. and Ridgecrest Dr.

Keen Homeplace will include 9 residential lots on approx. 10.4 acres.

Completed Projects

9

Primrose Office II - Intersection of S. Village Center Dr. and S. Nolen Dr. Primrose Office II will include 3 two-story office buildings totaling 25,660 sq. ft. on approx. 1.84 acres.

1

EVO Entertainment- Plaza Dr. (Town Square)

EVO Entertainment will re-occupy the vacant Harkins Theater building. The new tenant will make exterior modifications to the building and will bring a state-of-the-art, one-step entertainment destination to Town Square. EVO Entertainment will include movie theater screens, bowling lanes, video arcade games, and more!

2

Metairie - SW Corner of Dove Rd. and N. White Chapel Blvd.

Metairie includes 56 residential lots on approx. 29 acres.

3

Ferguson Place - Lonesome Dove Rd. Ferguson Place includes two tracts that were rezoned into residential lots and incorporated into a 30-lot subdivision in the City of Grapevine.

Crescent Heights - W. Southlake Blvd. and Shady Oaks Dr.

4

Crescent Heights includes 57 residential lots and open-space features on approx. 58 acres.

5

The Clariden School STEAM AdditionClariden Ranch Rd.

The Clariden School STEAM Addition includes a one-story, approx. 9,000 sq. ft. building addition.

Valuation

VALUATION ADDED

This chart illustrates the trends in residential and commercial valuation added since FY 2018. Valuation added is the value of improvements added during an appraisal year, which includes new and existing homes and buildings. Permit values represent a total value of all construction work, including materials and labor for which the permit is issued.

TOTAL RESIDENTIAL & NON-RESIDENTIAL VALUATION

$2,559,124,330

The information in the chart above represents the total residential and non-residential valuation in FY 2022. In this instance, valuation is defined as the total value of property. Residential valuation encompasses all residential units built in the city, while non-residential valuation includes offices, hospitals, and other commercial entities.

FOR PREVIOUS FISCAL YEARS

The information in the table above displays the changes in total residential and non-residential valuation from FY 2018 to FY 2021.

Valuation

TOTAL ASSESSED VALUE & TAXABLE VALUE COMPARISON

The chart displayed provides a comparison of property values since FY 2018.

2018

2019

2020

2021

The taxable value shown is net of the incremental taxable value assigned to the Tax Increment Reinvestment Zone (TIRZ) #1. For FY 2022, TIRZ #1 incremental value was $508,142,995.

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.

$10.8B

$8.8B

TOTAL ASSESSED VALUE FY 2022

TOTAL TAXABLE VALUE FY 2022

TOTAL

TOTAL SALES TAX COLLECTED IN FY 2022

Sales tax is made up of 4 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 construction and operation of parks. 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.

GENERAL FUND FOR FY 2022

GENERAL FUND FOR PREVIOUS FISCAL YEAR

The largest General Fund revenue source for the city of Southlake is Ad Valorem, or Property Tax. The second largest General Fund revenue source is the Municipal Sales Tax. Another major revenue source for the city is Franchise Fees, which represent revenue from private utility companies operating in Southlake. One percent of every dollar spent within the city goes towards the General Fund, which accounts for core city functions such as police, fire, engineering, planning, finance, and administrative operations.

HOTEL OCCUPANCY TAX COLLECTED IN FY 2022

The Hotel Occupancy Tax (HOT) is authorized under the Texas Tax Code, Chapter 351. The city of Southlake levies a 7% tax on room receipts per Ordinance No. 769 (adopted February 2000). Tax on rooms from the Hilton in Town Square and the Cambria Southlake provide revenue in this category. Use of these funds is restricted and planned expenses must be authorized uses under the Texas Tax Code, Chapter 351.

$35,288

SIGN PERMIT FEES COLLECTED IN FY 2022

The regulation of signage within the city is handled internally. Each permit has a specific permit fee associated with it. The chart above highlights the revenue generated from processing sign permits.

TOTAL FEES FROM BUILDING PERMITS IN FY 2022

The Planning and Development Services Department processes many different types of permits. The chart above includes fees collected from new construction permits, sign permits, accessory buildings, pools, commercial re-models, re-occupancy, mechanical/electrical/plumbing (MEP) permits, re-roof, and more.

NEW RESIDENTIAL PERMITS (2018-2022)

NEW COMMERICAL PERMITS (2018-2022)

SIGN PERMITS (2018-2022)

Southlake Subdivisions

The map identifies the major subdivisions within the City of Southlake. For the purpose 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 * subdivisions that fit the 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.

Southlake Subdivisions

Southlake Subdivisions

Southlake Subdivisions

Southlake Subdivisions

* 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.

Contact Us

If you have any questions regarding material included in this report, or would like to know more about the Planning and Development Services department, please feel free to contact us using one of the methods below: (817)