Annual Development Report, FY 2018

CITY OF SOUTHLAKE

FISCAL YEAR 2018

A N N UA L D EV E LO P M E N T R E P O RT

COUNCIL & STAFF CITY of SOUTHLAKE COUNCIL MEMBERS

MAYOR Laura Hill

MAYOR PRO TEM/ Randy Williamson COUNCILMEMBER PLACE 4

DEPUTY MAYOR PRO TEM/ Shawn McCaskill COUNCILMEMBER PLACE 2

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/ Alison D. Ortowski

DIRECTOR OF ECONOMIC DEVELOPMENT AND TOURISM

CHIEF FINANCIAL OFFICER Sharen Jackson

SR. DIRECTOR OF PLANNING Kenneth M. Baker & DEVELOPMENT SERVICES

2

WWW.CITYOFSOUTHLAKE.COM

.

CONTENTS INTRODUCTION The introduction explains the purpose of the annual report document, highlighting its contents.

4

SOUTHLAKE AT A GLANCE This section provides a brief informational overview of the City of Southlake.

7

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

8

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

16

DEVELOPMENT HIGHLIGHTS The Development Highlights section focuses on development activity within the City of Southlake during fiscal year 2018.

Throughout this section are charts and graphs illustrating trends in the number of permits processed.

22

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

30

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

35

CONTACT US

43

WWW.CITYOFSOUTHLAKE.COM

3

ECONOMIC OVERVIEW

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 2018; the Fiscal Year 2018 reporting period is October 1, 2017 through September 30, 2018.

Much of the information within the Annual Report mirrors information highlighted within the City’s Fiscal Year 2018 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.

4

WWW.CITYOFSOUTHLAKE.COM

A Note from the Senior Director of Planning and Development Services As Fiscal Year 2018 has come to a close, I commend our department on the numerous accomplishments made throughout the year. City staff works hard to continually update the City’s Comprehensive Plan, Southlake 2035, 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, 2035 Corridor Planning Committee). In addition, our citizens also 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.

Pictured Below: Sr. Director of Planning and Development Services, Ken Baker.

Pictured Above: Southlake City Council.

WWW.CITYOFSOUTHLAKE.COM

5

6

WWW.CITYOFSOUTHLAKE.COM

SOUTHLAKE at a GLANCE • • • •

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 • 78% of Southlake residents served by Carroll Independent School District • Other districts serving Southlake include: Northwest ISD, Keller ISD, and GrapevineColleyville ISD

8%

35%

57%

Southlake Residents 65 Years of Age and Older

Southlake Residents Between the Ages of 20 and 64

WWW.CITYOFSOUTHLAKE.COM

Southlake Residents Under 10 Years of Age

7

ECONOMIC OVERVIEW

SOUTHLAKE OFFICE AND RETAIL OVERVIEW* • • • •

Total existing office space: 4,248,829 sq. ft.

Office space vacancy rate: 18.7% Total retail space: 3,935,263 sq. ft.

Retail space vacancy rate: 6.9%

DFW OFFICE AND RETAIL OVERVIEW*

TOP NON-RESIDENTIAL TAXPAYERS • • • • •

Town Square Ventures LP Verizon Wireless Southlake Town Square Grand Avenue LP Carroll/1709 LTD Wyndham Properties, LTD

LABOR POOL AGE 16+

• Office space vacancy rate: 14.8% • Retail space vacancy rate: 6.9%

• Within 5 miles of Southlake: 66,842 • Within 10 miles of Southlake: 266,944 • Within 20 miles of Southlake: 1,435,099

EMPLOYMENT BY OCCUPATION

*Office and Retail data provided by CoStar

5.4% 2.6% Managerial/Professional Service Occupations

23.3%

Sales/Administrative Support Construction/Maintenance

6.0%

62.7%

Transportation/Production

Top Employers in Southlake Sabre Holdings - 2,134 Employees TD Ameritrade - 1,900 Employees Carroll ISD - 1,140 Employees Keller Williams - 700 Employees Gateway Church - 613 Employees Verizon Wireless - 585 Employees 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 2018 contains residential housing market information based on the dates December 1, 2017 - November 30, 2018 from NTREIS. Given the use of different sources, information may differ in this document from what was posted throughout FY 2018 in the quarterly updates, to what was included in the FY 2018 Annual Report and FY 2018 Budget.

Residential Fast Facts • • • • • • • •

549

Home Sales within Southlake during 2018

Total number of home sales during 2018: 549 % Change in home sales vs. the prior year: -13% 2018 average home sales price: $831,899 % Change in average home sales price vs. prior year: 2% Months inventory: 3.3 % Change in months inventory vs. prior year: -3% Average price per square foot 2018: $194 Average price per square foor 2017: $189

WWW.CITYOFSOUTHLAKE.COM

9

ECONOMIC OVERVIEW

SOUTHLAKE RESIDENTIAL SUBDIVISION INFORMATION The map below 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 156 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.

10

WWW.CITYOFSOUTHLAKE.COM

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 44 45 46 47

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 CRESCENT HEIGHTS ** CROSS TIMBER HILLS DIAMOND CIRCLE ESTATES DOVE ACRES DOVE ESTATES EAST HAVEN ADDITION EDWARDS PARK EMERALD ESTATES ESTANCIA 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 HUDSON BAY ESTATES HUGHES ADDITION HUNTERS RIDGE HUNTWICK ESTATES

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 22,023 29,459 65,458 39,620 50,311 177,641 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 85,343 115,231 192,564 43,035 68,597 94,159 40,388 44,316 48,700 33,591 64,964 83,268

Total Lots 7 7 9 22 10 154 14 404 9 10 15 39 106 16 83 81 22 112 69 55 100 57 197 66 31 109 21 2 49 13 178 13 18 64 15 14 49 16 22 17 27 15 15 15 6 2 19 16

WWW.CITYOFSOUTHLAKE.COM

11

ECONOMIC OVERVIEW

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 91 92 93 94 95 96 12

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 MATTHEWS COURT MEADOW OAKS METAIRIE ** 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 RIDGEWOOD ROYAL OAKS ADDITION SADDLECREEK ESTATES SADDLEBACK RIDGE ESTATES SANDLIN MANOR WWW.CITYOFSOUTHLAKE.COM

6 18 34 54 5 19 150 6 51 39 38 27 24 150 8 11 56 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 59 15 4 32 21

87,861 39,602 41,779 17,075 29,069 20,017 15,484 42,767 19,591 42,021 45,500 37,455 43,137 12,179 19,645 90,707 10,008 19,058 37,842 19,688 14,832 42,738 12,911 19,003 17,417 20,592 18,553 19,274 19,725 12,494 43,141 49,464 65,295 20,299 19,722 20,227 40,774 19,376 41,331 44,361 41,639 38,642 41,358 39,828 9,341 19,543 39,017 89,651 41,559 19,995

120,032 47,087 83,870 20,161 36,993 22,772 23,464 65,553 22,812 62,866 88,367 46,194 50,190 17,185 21,223 136,970 12,580 23,227 49,486 26,157 18,783 44,178 15,548 20,183 21,745 21,795 20,922 25,104 22,088 15,463 51,465 60,279 228,654 27,021 22,527 33,829 44,880 21,692 65,609 58,659 49,681 44,883 49,764 47,389 12,294 22,260 47,476 110,589 45,519 25,964

172,739 86,783 305,525 27,711 54,813 60,364 63,521 128,239 36,860 183,582 242,160 125,477 84,313 63,077 22,465 178,016 17,672 39,609 109,493 84,905 30,065 46,805 31,776 21,519 32,541 23,479 31,552 35,378 34,540 18,916 66,193 71,354 435,325 56,350 30,999 58,075 47,203 36,168 170,683 98,568 59,707 52,411 102,435 108,356 17,725 30,611 53,900 135,178 61,144 57,561

ECONOMIC OVERVIEW

97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145

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 STONY BROOK ** 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 VERANDAS AT SOUTHLAKE VERMILION VERSAILLES VILLAS AT HIDDEN KNOLL VILLAS DEL SOL VISTA TRAILS WAKEFIELD ADDITION WWW.CITYOFSOUTHLAKE.COM

11 15 149 43 14 56 46 33 10 39 80 96 129 384 76 1 14 13 335 32 47 14 23 42 15 76 55 55 13 14 7 24 27 8 1396 303 15 12 22 58 57 20 3 38 14 148 38 9 70 7

42,296 42,396 14,738 19,819 43,342 19,512 10,075 7,412 78,379 9,937 18,972 15,879 18,220 16,505 17,778 269,001 41,128 41,946 12,279 16,536 15,294 20,166 19,924 9,605 9,783 1,922 19,372 19,235 42,118 21,217 45,540 41,165 19,581 67,747 5,734 12,513 15,052 23,328 44,103 41,651 7,769 37,802 48,900 9,828 42,897 14,203 10,190 41,837 19,695 43,466

44,481 53,366 20,747 22,798 58,148 22,859 34,831 10,209 83,730 12,032 22,029 23,755 27,734 23,103 22,556 269,001 48,143 46,934 19,571 22,918 20,087 23,465 23,016 12,945 10,166 3,361 26,308 23,417 45,398 27,150 55,402 48,894 21,495 90,154 16,061 16,559 64,301 27,881 63,021 44,389 8,776 48,177 67,937 11,513 43,972 18,928 12,203 44,693 22,703 44,356

46,638 128,521 33,117 33,701 159,418 35,237 100,400 17,734 86,228 21,565 31,416 41,751 58,913 68,989 31,624 269,001 107,749 86,033 609,297 31,879 34,825 27,600 39,575 24,494 14,329 7,063 66,385 34,689 58,058 59,731 64,500 92,922 29,847 121,565 68,355 28,580 150,714 35,294 93,849 55,506 15,585 60,839 103,439 19,227 45,124 34,762 17,321 46,721 27,764 45,643 13

ECONOMIC OVERVIEW

146 147 148 149 150 151 152 153 154 155 156 157

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

3 41 38 12 19 17 74 12 24 9 32 9

42,921 23,002 42,072 8,073 18,991 38,719 14,912 18,971 42,848 20,979 38,262 18,980

46,272 37,010 57,543 84,629 20,633 45,763 16,730 21,812 46,997 22,879 66,933 27,423

48,442 107,232 105,247 256,089 29,030 53,025 25,871 25,670 93,362 25,778 158,503 35,823

*The Timarron development is composed of multiple subdivisions, all under the general heading * The Timarron development is composed of multiple subdivisions, all under the general of ‘Timarron’. Sample names are Timarron-Brenwyck, Timarron-Wyndsor Grove, Timarronheading of 'Timarron'. Sample names are Timarron-Brenwyck, Timarron-Wyndsor Grove, Northwood Park, and many others.

Timarron-Northwood Park, and many others. **Crescent Heights, Metairie and Stony Brook are approved subdivisions that have not **Crescent Heights, and Stony Brookinare subdivisions that were have not yet been been plattedMetairie yet. The numbers included theapproved list (total lots and lots sizes) platted. The numbers included in the listafter (total lotsfinal andapprovals lots sizes) taken from final memos taken from final memos prepared their at were City Council.

prepared after their final approvals at City Council.

14

WWW.CITYOFSOUTHLAKE.COM

ECONOMIC OVERVIEW

WWW.CITYOFSOUTHLAKE.COM

15

UNDERSTANDING DEVELOPMENT

Overview of the Development Process in Southlake

Pre-Application Before an application is submitted to the City of Southlake Planning and Development Services Department (PDS), potential applicants will often meet with staff to review their proposals in accordance with the City’s adopted development ordinances, suchs as the Zoning Ordinance, Subdivision Ordinance, and more.

2035 Corridor Planning Committee Appointed by City Council in 2015, 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 plan. The committee conducted 8 meetings in FY 2018.

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. The DRC met 15 times during FY 2018.

Southlake Program for the Legislative Action Involvement of Neighborhoods The final steps in the entitlement (SPIN) process include meeting with the SPIN Town Hall Forums represent Planning & Zoning Commission a unique opportunity for applicants (P&Z) and City Council. The and Southlake residents to meet for P&Z Commission provides a a Q&A about projects of interest. recommendation on an application Although beneficial for all, this does to City Council. City Council is the not represent a required step in final legislative authority, approving the development process. 12 SPIN or denying, on all development Town Hall Forums were held during proposals. Depending on the project FY 2018, where 45 development type, an item may require one or cases were presented to the public. two meetings at City Council.

16

WWW.CITYOFSOUTHLAKE.COM

Application Submittal Once ready, the applicant will submit a proposal to PDS for review. During FY 2018, PDS processed 136 development applications, including Site Plans, Specific Use Permits, Comprehensive Plan Amendments, Zoning Board of Adjustment applications, and Plats.

UNDERSTANDING DEVELOPMENT

Planning for the Future: The Southlake 2035 Comprehensive Plan The Southlake Comprehensive Plan is a culmination of plan elements that provide a vision for the future.

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 policy.

Adopted Southlake 2035 Plan Elements

Land Use Sector Plan & Consolidated Future Land Use Plan

Public Arts Master Plan

Youth Master Plan

Anticipated 2035 Plan Adoptions for Fiscal Year 2019 Water Wastewater Stormwater Health & Wellness

Pictured Above: The Southlake 2035 Corridor Planning Committee held an open house in April 2018 for the Land Use Sector Plan and Consolidated Future Land Use Plan.

WWW.CITYOFSOUTHLAKE.COM

17

UNDERSTANDING DEVELOPMENT

Brief Snapshot of the Planning and Development Services Department Mission Statement “The department is an organization that provides professional advice, support and technical expertise to elected officials and appointed boards, city departments, developers, builders and citizens as it relates to all development related topics.

We accomplish this in a manner that focuses on a long term safety and health, economic vitality, environmental integrity, development design quality and the quality of life of the community through the provision of quality master plans, plan implementation, development review, building and structure inspection and code enforcement.�

The Planning and Development Services Department (PDS) is made up of three separate divisions overseen by the Senior Director of Planning and Development Services. These divisions include Planning, Building Inspections, and Code Enforcement. This page features some additional information about the makeup of the department.

Administration

Senior Director Deputy Director Assistant to the Director Administrative Secretary

18

Planning

2 Principal Planners 2 Planners Landscape Administrator

Building Inspections

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

WWW.CITYOFSOUTHLAKE.COM

Code Enforcement

2 Code Enforcement Officers Landscape & Zoning Inspector

UNDERSTANDING DEVELOPMENT

Planning and Development Services Awards and Recognition

Pictured Above: Mayor Laura Hill and City Council Members present a proclamation to PDS recognizing Arbor Day in November 2018.

PDS was recertified as a Platinum Scenic City in 2017, one of 13 Texas cities to recieve this designation.

PDS also received Planning Excellence recognition in 2018 for the 14th consecutive year.

In 2017, Southlake received Tree City USA status for the 21st consecutive year, as well as its 16th National Arbor Day Growth Award.

Pictured Below: Deputy Mayor Pro Tem Shawn McCaskill and Planning and Zoning Chairman Daniel Kubiak present a proclamation to PDS for National Community Planning Month in October 2018.

WWW.CITYOFSOUTHLAKE.COM

19

UNDERSTANDING DEVELOPMENT

Land Use in Southlake The larger pie chart illustrates the distribution of land uses by category in Southlake*. The three smaller pie charts illustrate the developed area (solid) versus undeveloped area (shaded lines) for two residential categories and the Public/Semi-Public land use category in Southlake. The six pie charts on the next page illustrate the developed area (solid) versus undeveloped area (shaded lines) for additional land use categories in the City of Southlake.

1% 2% 1% 6%

Corps of Engineers Property

6%

100-Year Flood Plain

4%

4%

Industrial

3%

Low Density Residential

3%

Medium Density Residential Mixed Use Office Commercial

8%

Public Parks/Open Space

Public/Semi-Public Regional Retail Retail Commercial

33%

Town Center

Developed Undeveloped

29%

Land Use Category Low Density Residential Medium Density Residential Public/Semi-Public Mixed Use Industrial Town Center Office Commercial Retail Commercial Regional Commercial 20

*Excludes ROW Updated 5/25/18

Developed (Acres) 3730.39 3327.62 719.54 590.39 326.14 153.29 261.69 223.29 114.97 WWW.CITYOFSOUTHLAKE.COM

Undeveloped (Acres) 393.28 300.52 12.88 414.42 80.39 20.15 77.6 17.73 1.14

UNDERSTANDING DEVELOPMENT

Low Density Residential

10%

Public/Semi-Public

Medium Density Residential

2%

8%

92%

90%

98%

Industrial

Mixed Use

Town Center

12%

20% 41% 59%

80%

Office Commercial

88%

Retail Commercial

Regional Retail

1%

7%

23%

77%

99%

93% WWW.CITYOFSOUTHLAKE.COM

21

DEVELOPMENT HIGHLIGHTS

Brief Updates on Major Developments in Southlake The next two pages provide additional insight into the progress of a few major commercial, residential and Carroll ISD related developments.

Champions Club at The Marq

In 2019, the long awaited Champions Club at The Marq Southlake will be opening! At approximately 82,000 square feet, Champions Club will include spaces for fitness, performance training, gymnasium, indoor jog/walk track, indoor aquatics, indoor playground, party rooms, child watch and multipurpose classrooms for programs.

Membership sales are currently underway.

Parkview Residences

In November 2013, City Council approved a Specific Use Permit for Parkview Residences located along Central Avenue within Southlake Town Square. Formally named The Garden District Parkview, the development will include 36 luxury condominiums with amentities such as a club room, rooftop deck, owner’s lounge, fitness facility, conference room and courtyard. Construction is currently underway for this project!

Westin

In April 2016, City Council approved a Zoning Change and Site Plan for the Westin located along State Highway 114. Ranging from 191,600 240,500 square feet and approximately 6 stories tall the Westin will include 253 rooms, a parking garage and assorted amenities. Preliminary construction has begun for this project.

22

WWW.CITYOFSOUTHLAKE.COM

DEVELOPMENT HIGHLIGHTS

Stony Brook

In March 2018, City Council approved a Zoning Change and Development Plan for Stony Brook located on West Southlake Boulevard and Brock Drive. Formerly known as Stone Trail and Holmes Builders, the development will include 47 residential lots and an open-space feature on approximately 35 acres. Construction is currently underway for this project!

Crescent Heights

In June 2017, City Council approved a Zoning Change and Development Plan for Crescent Heights located on West Southlake Boulevard and Shady Oaks Drive. The development will include 57 residential lots on approximately 58 acres.

Construction is currently underway for this project!

CISD Bond Projects

In May 2018, City Council approved five (5) development projects for Carroll Independent School District as part of their 2018 Bond Project.

The projects include site improvements for Jack Johnson Elementary School, Carroll Elementary School, Old Union Elementary School, Carroll Senior High School Athletics Phase 2 and CISD Transportation Facility. Construction for these projects began in May 2018, with an anticipated completed date of late 2019.

WWW.CITYOFSOUTHLAKE.COM

23

DEVELOPMENT HIGHLIGHTS

FY 2018: Planning and Development Services By the Numbers Below is a snapshot of numbers collected during FY 2018 that represent various tasks carried out by the Planning and Development Services department.

272 Event Signs Placed Around the City of Southlake

17,905 Total Building & Code Inspections Conducted by PDS

240 Code Enforcement Cases Worked

Event signs allow the city to advestise upcoming events and share information to the public

3,461 *Pageviews & 905 **Unique Pageviews for the PDS Development Blog

118 Public Hearing Signs & 174 SPIN Signs Placed

*Pageviews: every time a web page is viewed **Unique Pageviews: every time a device (computer, phone, tablet, etc.) views a webpage

2,032 #Notification Letters Sent to Southlake Property Owners

by Planning #Notification Letters are postmarked mail sent to surrounding property owners to inform them of an adjacent development case going through the development process.

3,453 Building Permits Issued 140 Pool Permits Issued

24

Includes New Residential and New Commercial permits

WWW.CITYOFSOUTHLAKE.COM

552 Illegally Placed Signs Removed

by Code Enforcement

DEVELOPMENT HIGHLIGHTS

New Construction Building Permits New Residential Building Permits

New Commerical Building Permits

300 272 250 223 200

197

160 No. of Permits 150

127 100

50

42 27

30

FY 2015

FY 2016

21

23

FY 2017

FY 2018

0 FY 2014

Fiscal Year

The graph above represents new construction building permits in Southlake between FY 2014 through FY 2018.

The number of new 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 renovation to existing buildings or residences.

127

New Residential Permits in FY 2018

23

New Commercial Permits in FY 2018 WWW.CITYOFSOUTHLAKE.COM

25

DEVELOPMENT HIGHLIGHTS

New Construction Permit Value Residential Construction Permit Value

Commercial Construction Permit Value

$250,000,000

$196,895,155

$200,000,000

$178,247,281 $155,805,084

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

$129,587,892

Dollars

$113,266,105

$100,000,000 $81,215,734

$50,000,000

$42,543,750 $32,503,544

$37,518,535

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

The new construction permit value represents the valuation of the building improvement 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.

26

WWW.CITYOFSOUTHLAKE.COM

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 1,200,000

1,313,861

1,286,879

1,135,145 981,476

Square Feet 1,000,000

823,779

800,000 630,277

600,000 376,682

400,000

358,899

200,000 0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

The chart above represents the total square footage permitted within the City in terms of residential and commercial structures. Permits to renovate or finish-out the inside of a building do not count towards a 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

2014 2015 2016 2017 2018

1,765,422

44.8%

2,835,865

60.6%

3,050,533

7.5%

1,358,158

-55.4%

1,182,678

-12.9%

WWW.CITYOFSOUTHLAKE.COM

27

DEVELOPMENT HIGHLIGHTS

Sign Permits Issued 400 352

342

341 306

300

286

No. of Permits 200

100

0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

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 325 per year.

341

Total Sign Permits Issued in FY 2018

28

WWW.CITYOFSOUTHLAKE.COM

DEVELOPMENT HIGHLIGHTS

WWW.CITYOFSOUTHLAKE.COM

29

VALUATION

Valuation Added Residential Valuation Added

Commercial Valuation Added

$350,000,000

$291,969,208

$300,000,000

$240,750,391

$250,000,000

$200,000,000 Dollars

$150,000,000

$128,244,794

$130,852,569

$123,457,784 $94,015,702

$100,000,000 $70,273,066

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

$50,000,000

$0

$5,295,848

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

This chart illustrates the trends in residential, and commercial valuation added since FY 2014. Valuation added is not the same as residential and commercial permit value as seen on page 24 of this report. Valuation added is the value of improvements added during an appraisal year, which includes new homes, buildings and improvements made to existing homes and buildings. Between FY 2017 and FY 2018, the City of Southlake saw a percent decrease in residential value added of 17%, and approximately 24% decrease in commercial valuation added.

$334,766,093

Total Residential & Commercial Valuation Added in FY 2018 30

WWW.CITYOFSOUTHLAKE.COM

VALUATION

Total Residential Valuation $4,700,000,000 $4,597,121,401

$4,600,000,000

$4,500,000,000

$4,450,827,827

$4,431,048,616 $4,393,684,420

$4,400,000,000

Dollars $4,300,000,000

$4,200,000,000 $4,142,542,414

$4,100,000,000

$4,000,000,000

$3,900,000,000 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

The information in the chart above represents the changes in total residential valuation since FY 2014. Residential valuation encompasses all residential units built in the city (i.e. does not include commercial businesses). The slight decrease in total residential valuation from FY 2016 to FY 2017 is due to increases in homestead exemption (exceeded the increase in value). Between FY 2017 and FY 2018 residential growth in the City increased by 5%.

$4,597,121,401 Total Residential Valuation in FY 2018

WWW.CITYOFSOUTHLAKE.COM

31

VALUATION

Total Non-Residential Valuation $2,500,000,000

$2,065,373,383 $1,975,216,626

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

$1,500,000,000

$1,483,892,470

Dollars

$1,000,000,000

$500,000,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

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 2014 and FY 2018. Between FY 2017 and FY 2018 commercial growth (valuation) in the City increased by 4.5%.

$2,065,373,383 Total Non-Residential Valuation in FY 2018

32

WWW.CITYOFSOUTHLAKE.COM

VALUATION

Total Assessed Value and Taxable Value Comparison Total Assessed Value

Total Taxable Value

$9,000,000,000

$8,743,046,226 $8,269,475,160

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

$7,000,000,000

$6,653,878,247

$6,760,119,917 $6,368,901,046

$6,000,000,000

$5,958,098,087 $5,626,431,884

$6,662,494,784

$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 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

The table above provides a comparison of property values since FY 2014. 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 2018, TIRZ #1 taxable value was $458,747,491. 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.

$8,743,046,226

Total Assessed Value in FY 2018

$6,662,494,784

Total Taxable Value in FY 2018 WWW.CITYOFSOUTHLAKE.COM

33

VALUATION

34

WWW.CITYOFSOUTHLAKE.COM

REVENUE

Total Sales Tax Collected CCPD

SPDC

CEDC

General Fund

$35,000,000

$30,000,000

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

$20,000,000

$14,876,208

$14,365,925

$15,124,646

$13,342,819

Dollars

$15,000,000

$10,000,000

$7,440,726

$5,613,664

$5,707,414

$7,318,490

$7,578,446

$7,705,009

$1,803,605

$1,879,292

$1,923,567

FY 2016

FY 2017

FY 2018

$5,421,104

$6,571,836

$5,000,000 $6,516,603

$7,335,506

$0 FY 2014

FY 2015

Fiscal Year

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 2018. 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.

$30,460,636 Total Sales Tax Collected During FY 2018 WWW.CITYOFSOUTHLAKE.COM

35

REVENUE

Property Tax Collected - General Fund $25,000,000

$24,241,182 $22,628,164

$20,000,000

$19,193,800

$19,446,457

FY 2014

FY 2015

$20,095,677

$15,000,000 Dollars

$10,000,000

$5,000,000

$0 FY 2016

FY 2017

FY 2018

Fiscal Year

The largest single revenue source for the City of Southlake is Ad Valorem, or Property Tax. The chart above illustrates the trend in property tax collection in Southlake between FY 2014 through FY 2018. Between FY 2017 and FY 2018 the City of Southlake saw a percentage increase of 7% in the amount of property tax collected.

$24,241,182 Collected in Total Property Tax during FY 2018 36

WWW.CITYOFSOUTHLAKE.COM

REVENUE

Sales Tax - General Fund $16,000,000

$15,106,928

$14,876,208

$14,365,925

$14,000,000

$15,124,646

$13,342,819

$12,000,000

$10,000,000

Dollars $8,000,000

$6,000,000

$4,000,000

$2,000,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

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 FY 2014. 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.

WWW.CITYOFSOUTHLAKE.COM

37

REVENUE

Franchise Tax - General Fund $3,500,000

$3,000,000

$3,327,739

$2,955,114

$2,841,024

$2,907,538 $2,765,365

$2,500,000

$2,000,000 Dollars

$1,500,000

$1,000,000

$500,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

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 2014 and FY 2018. Based on the years illustrated in the trend analysis, FY 2015 generated the most revenue in franchise fees.

$2,765,364 Generated in Revenue from Franchise Fees in FY 2018 38

WWW.CITYOFSOUTHLAKE.COM

REVENUE

Hotel Occupancy Tax Collected $1,400,000

$1,357,106

$1,164,922

$1,200,000 $1,024,061

$1,000,000

$948,971

$974,467

$800,000 Dollars

$600,000

$400,000

$200,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

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 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 2014 and FY 2018. 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.

$1,357,106 Generated in Hotel Occupancy Tax Revenue in FY 2018 WWW.CITYOFSOUTHLAKE.COM

39

REVENUE

New Residential & Commercial Construction Permit Fees Collected Residential Permit Fees $1,400,000

Commercial Permit Fees $1,325,405

$1,200,000 $1,014,558

$1,000,000

$800,000

$1,032,334 $903,748

$859,908

$820,000 $770,964

$766,641

Dollars

$632,342

$600,000

$544,888

$400,000

$200,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

Fiscal Year

A source of revenue for the City’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 2014 and FY 2018.

Fiscal Year 2014 2015 2016 2017 2018

40

Total Fees Collected from New Residential and Commercial Permits 1,590,964 2,046,892 2,185,313 1,398,983 1,448,636

WWW.CITYOFSOUTHLAKE.COM

REVENUE

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

$35,000

$30,000

$33,576

$33,537

$32,928

$28,219

$25,000

Dollars $20,000

$15,000

$10,000

$5,000

$0 FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

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 $32,916 a year.

$32,928

Collected in Fees from Processing Sign Permits during FY 2018 WWW.CITYOFSOUTHLAKE.COM

41

REVENUE

Total Fees from Building Permits $3,000,000

$2,519,861

$2,500,000

$2,000,000

$2,393,490

$1,924,156 $1,733,747

$1,711,348

FY 2017

FY 2018

Dollars $1,500,000

$1,000,000

$500,000

$0 FY 2014

FY 2015

FY 2016 Fiscal Year

The Planning and Development Services Department processes many different types of permits throughout the year. Previous pages of this report highlight new construction permits and sign permits. The above chart includes fees collected from those sources, as well as accessory buildings, pools, commercial remodel, re-occupancy, MEP, reroof, and more.

$1,711,348

Collected in Fees from Processing Building Permits during FY 2018 42

WWW.CITYOFSOUTHLAKE.COM

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) 748-8621

https://www.cityofsouthlake.com/110/Planning-Development-Services

Visit Us:

1400 Main Street Suite 310 Southlake, TX 76092 We’ve also included a link to our online Development Activity News Blog and Story Map feature for those wanting to stay up-to-date on the latest development items at our City Council and Planning & Zoning Commission meetings! https://www.cityofsouthlake.com/Blog.aspx?CID=8

WWW.CITYOFSOUTHLAKE.COM

43