Impact fees paid by home builders inside Sherley Farms would go into a separate city account and flow back to the subdivision's developer under an economic development agreement on the Anna City Council's consent agenda for Tuesday, Nov. 17.
The agreement with Tellus Texas III, LLC, posted with the agenda Tuesday, sets up a grant under Chapter 380 of the Texas Local Government Code.
It builds on a development agreement the city, the developer and Sherley Partners, Ltd. signed in December 2024 for the mixed-use project, which the documents say will include single-family homes of various sizes, townhomes, apartments and commercial space built in phases.
How the money would move
Under the draft, the city would collect impact fees on every building permit in Sherley Farms and park them in a "Sherley Farms Impact Fee Account." Once the developer finishes and documents eligible infrastructure, the city would pay it back each quarter from that account, up to whatever balance is available.
The eligible work listed in the agreement is the major water, sewer and roadway improvements shown in an exhibit, plus the land for an elevated water storage tank. The total the developer could receive is capped at the actual cost of that work, minus anything paid for with public improvement district bonds.
The draft says no cost can be reimbursed twice and that the city never has to pay more than the cap, even if fees collected in the project run higher. Once the cap is reached, the city could use later impact fees from the development for any lawful purpose.
The agreement does not put a dollar figure on the infrastructure. The developer would submit certified cost statements, which the city manager or city engineer would have to approve before any payment.
