Annexation Development Agreement

Isn`t it true that many cities enter into annexation agreements that require property owners to apply for annexation as a precondition for including water and sanitation services for non-urban properties? These are all null contracts? The answer is „no.“ Remember that the legal limitation is that the government commits to exercising (or not) its basic powers of government. If the City requires a landowner to apply for an annex, the City generally does not promise to annex. Instead, it requires the owner of the land to apply for annexation, and the City reserves the discretion to respond or not to the petition. The City of Promiseland has had discussions with a developer about a property outside the city, which is perfect for a small business center. The City is prepared to extend water and sanitation services to the land and, in accordance with City policy, the developer will request an application for annexation. The land is subject to county zoning (currently low-density agricultural and residential uses), so the developer expects the city to annex the land and surround it for commercial use. The developer also wants to ensure that the annexation will take place as soon as possible to use the internal prices of water and wastewater and other urban services necessary to bring the project to market. The lawyers are ready to introduce all these conditions into a development agreement in this sense: the City agrees to annex the land, refile the land and expand water and sanitation and other services in the existing municipal tariffs and guidelines; The developer agrees to apply for annexation, request a zoning change and build the project according to the parameters defined in the agreement. There is only one problem: this agreement is not legally enforceable in North Carolina, as the city`s promises to take legislative action are not binding on the board that did so or on future boards. A second possibility would be to obtain a local law specifically authorizing the agreement. What are the possibilities of the city of Promiseland and the developer? One possibility is to proceed with an agreement for the developer to apply for annexation and with a non-binding understanding that the board will annex and re-release.

It may even be possible for the city to start processing the change request before the annexation vote, so that these decisions can be made immediately after the annexation decision. An example of this type of „pre-annexation“ agreement was maintained in Town of Brockway v. Town of Black River Falls, 285 Wis.2d 708 (2005). Mutual expectations regarding the measures to be taken after the annexation were set out in an agreement drawn up before the annexation, but which was not executed by the city until after the vote on the annexation. . . .