Sustainable Intergovernmental Agreements

In 2005, the Texas Legislature approved Senate Bill 1894, which established two special utility districts within the extraterritorial jurisdiction (ETJ) of the City of Terrell, Texas, forming the largest rural planned development community in the State of Texas. This legislation allowed Terrell to use a city-design model to plan proactively for communities in its ETJ before they are constructed, through the establishment of comprehensive regional and intergovernmental agreements. Expansion from the large Dallas–Fort Worth metropolitan areas threatens the small-town character of Terrell and other rural communities in northern Texas. The recent adoption of complex intergovernmental agreements and land development planning initiatives in Terrell has stimulated the entire area to enact similar partnership agreements between developers and cities. This case study illustrates how local city authorities, challenged to preserve quality of place, can manage the growth around them and attract new investment while minimizing problems and avoiding negative consequences.