This has the potential to generate $7.15 million in retail sales tax revenue for the city over the next 30 years, said Charlie Rosendahl, interim director of development services.
What you need to know
A municipal utility district, or MUD, is a special-purpose district created to provide services such as water, wastewater and drainage to areas outside city limits, per city documents.
In February, council held public hearings and adopted a strategic partnership agreement with the district, according to city documents.
The strategic partnership agreement is a limited-purpose annexation, per city documents. This allows the city to collect sales tax that otherwise would not be collected on the property.
Council received a petition in April to include an additional 19.62 acres into the MUD, prompting an amendment to the agreement to accommodate the additional acreage within the district.
What it means
Half of the generated taxes collected go to the MUD, and the other half will go to the city.
In Rosendahl’s presentation to council, he estimated this will generate $7.15 million of retail sales tax for the city of Denton over the next 30 years.
Also of note
The Meadows MUD is located near FM 156 and US 380 and was created in 2020, according to city documents.
At full build-out, the 1026-acre mixed-use development will include:
- 2,802 single-family lots
- 21 acres for multifamily development
- 27 acres commercial development
