AGENDA CAPTION:
Title
Consider approval of Resolution 2025-74R, granting consent to the creation of the La Cima Municipal Management District for approximately 1,215.533 acres of land generally located near the intersection of Centerpoint Road and Old Ranch Road 12; and declaring an effective date.
Body
Meeting date: April 15, 2025
Department: Planning and Development Services
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: The subject property is within the La Cima Development Agreement Boundary which was approved by City Council.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Choose an item.
Choose an item.
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
The La Cima development was approved through a development agreement in 2013. Since its creation, the La Cima development intended to utilize a Public Improvement District (PID) to finance public improvements like roads, utilities and park improvements. This PID is currently administered by Hays County.
The applicant is requesting a different funding mechanism, a Municipal Management District (MMD), for the land that has not yet been developed. An MMD is a political subdivision with the ability to finance improvements like a PID. While the current PID is administered by the County, the MMD will have its own board and administer their own assessments or taxes.
While this is a new funding mechanism in San Marcos, MMD have been authorized by the state legislature for many years. The MMD is formed by the legislature and with the City’s consent resolution can issue bonds for improvements. Staff and the La Cima Committee had questions related to and concerns with the MMD, however these concerns are addressed in the consent agreement and will be memorialized in the development agreement.
• Issuance of bonds and timing of annexation. If bonds were issued prior to annexation, the City may be responsible for repayment. In order to ensure the City will not be responsible, the consent resolution states the land must be annexed prior to issuance of debt.
• The MMD’s ability to create nonprofit corporations. If a public facilities corporation (PFC) were created by the MMD it could potentially purchase land elsewhere that would be tax exempt. The consent resolution states any creation of a nonprofit corporation for the purpose of owning or developing tax exempt properties would only be permitted with written consent from the City.
• Release from ETJ or disannexation. In order to ensure La Cima complies with the annexation terms of the development agreement the consent resolution includes a statement that the land shall not release from ETJ or disannex once annexed into City Limits.
Council Committee, Board/Commission Action:
The La Cima Committee consisting of Mayor Jane Hughson and Councilmembers Matthew Mendoza and Shane Scott met to discuss this request. Attached is the Committee’s recommendation resolution which recommends the City Council consider the consent agreement.
Alternatives:
Click or tap here to enter text.
Recommendation:
Staff recommends approval of the consent resolution as presented.