AGENDA CAPTION:
Title
Consider approval of Resolution 2015-146R, approving the Trace Public Improvement District Financing Agreement, Service and Assessment Plan and Reimbursement Agreement between Highpointe Trace, LCC, a California limited liability company and the City of San Marcos, Texas, a Texas home rule municipality.
Body
Meeting date: October 20, 2015
Department: CMO
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
CITY COUNCIL GOAL: Economic Vitality and Responsible Finances
COMPREHENSIVE PLAN ELEMENT(s):
Economic Development Goal 4: An enhanced and diverse local economic environment that is prosperous, efficient and provides improved opportunities to residents.
Economic Development Goal 5: Fiscally responsible incentives for economic development.
Land Use Goal 1: Direct growth, compatible with surrounding uses.
Neighborhoods & Housing Goal 3: Diversified housing options to serve citizens with varying needs and interests.
BACKGROUND:
Pursuant to Texas Local Government Code Chapter 372, Highpointe Communities has requested that the City of San Marcos create a public improvement district (PID) within the City.
Highpointe Communities has entered into contract to purchase approximately 417 acres of land, generally located on the east side of IH-35, south of Posey Road, and also bordered by Old Bastrop Highway, at the southern edge of the City of San Marcos. The sale of the land is conditioned upon the formation of the PID, and the concurrent annexation and zoning of the property.
The purpose of this agenda item is to adopt a Resolution approving the PID Financing Agreement, Service and Assessment Plan and Reimbursement Agreement. These are contractual documents required for the creation and operation of the Public Improvement District. The applicant has requested concurrent Council consideration and approval of this PID Finance Agreement, a separate Resolution creating the PID, annexation Ordinance and zoning Ordinance at the October 20, 2015 regular Council meeting.
PID Terms:
Per the Term Sheet negotiated by the City Council Sub-committee, the maximum total indebtedness to be repaid through the PID is $19,500,000, of which $15,500,000 may be reimbursed to the developer for the cost of specific Authorized Improvements.
The Authorized Improvements are intended to be constructed in phases. The Term Sheet and the Finance Agreement contain provisions for the timely completion of improvements for Phase 1 and Phase 2. Specifically, the developer is required to submit construction plans for City review within 9 months of the approval of the PID, and to construct those improvements within 18 months of City approval of the construction plans.
The PID is structured as a “reimbursement PID,” which means that the City will not issue bonds, and the developer will not be repaid for the cost of the authorized improvements, until those improvements are complete, have been accepted by the City, and all other terms and conditions of the Finance Agreement have been satisfied.