AGENDA CAPTION:
Title
Consider approval of Resolution 2015-145R, creating the Trace Public Improvement District, in accordance with Chapter 372 of the Texas Local Government Code.
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. The Highpointe PID Petition is attached.
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 officially creating the proposed PID. The applicant has request concurrent Council consideration and approval of a separate Resolution creating the PID, a PID Finance Agreement, annexation Ordinance and zoning Ordinance at the October 20, 2015 regular Council meeting.
Analysis of the proposed Public Improvement District:
The Texas Local Government Code (§372.003) allows any city to levy and collect special assessments on property that is within the city or within the city’s extraterritorial jurisdiction (ETJ). If the governing body finds that the request for a PID promotes the interests of the municipality, the public improvement district may be formed to finance a wide range of public improvements.
Formation of the PID allows the property owner to make Authorized Improvements to the property, and then seek reimbursement for a portion of the cost of those Authorized Improvements from the proceeds of PID Bonds issued by the City. Creation of the district and issuance of PID Bonds will not obligate the City to provide any funds to finance the Authorized Improvements. All of the costs of the proposed improvements will be paid by assessments of the property within the District and from other sources of funds provided by the property owner.
Details of the proposed PID, including financing criteria, the project timetable, terms and conditions, and the Authorized Improvements, are provided in the attached Term Sheet.