14 - Action on Disannexation Petition - located on CR 22500

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Item No. 14 TO: City Council Robert G. Vine, Interim City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Action on Disannexation Petition—LOAD Parcels 71112, 71113, 70422, and 70423, located on County Road 22500 DATE: September 9, 2024 BACKGROUND: Nexus Renewable Power, LLC ("Nexus"), on behalf of Robert Moore, the property owner, has submitted a petition to disannex portions of three parcels (LOAD#s 71112, 71113, and 70422) and the entirety of a fourth parcel (LOAD# 70423) on or around County Road 22500, being approximately 170 acres in total. The parcels are located to the west, southwest, and south of the Kimberly-Clark plant.' Nexus has leased the parcels from Mr. Moore as part of the MRG Goody Solar Project (the "Project"). The Project will occupy additional parcels owned by the company to the west and out in the county. As a part of the development process, Nexus discovered that all of parcel 70423 and portions of the remaining parcels lie within the city limits of Paris. On June 24, 2024, Council directed staff to institute disannexation proceedings in line with the city's annexation and disannexation policy. As of this date, all notifications have been made and City Council has held two public hearings, on August 5th and August 12th after publication, all according to the requirements of Chapter 43, Texas Local Government Code. STATUS: The petition is now on the agenda for action on an ordinance disannexing the property. Nexus and the city have come to terms on a disannexation agreement whereby Nexus would pay the city $400,000.00, a sum meant to represent a present value of ad valorem taxes which would accrue on the property over a period of thirty years. The payments would be in three installments as follows: • A disannexation payment of $100,000.00 which would be due within thirty days following disannexation. • A commencement of construction payment of $175,000.00 which would be due within thirty days following the beginning of construction, which Nexus estimates will be in the fall of 2024. • A commencement of operations payment of $125,000.00 due within 30 days following the beginning of operations, which Nexus estimates will be in December of 2025. In addition, the disannexation agreement provides for Nexus to do land clearing and cite work on the Northeast Texas Trail corridor that runs through the project, including land which is not 1 Please refer to my memorandum of June 24, 2024 for a more thorough background of this petition including maps; I've attached it hereto for your easy reference.