AGENDA CAPTION:
Title
Consider approval of Resolution 2018-141R, amending the Highpointe Trace Public Improvement District Term Sheet.
Body
Meeting date: August 7, 2018
Department: City Manager Office, Steve Parker, Assistant City Manager
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Background Information:
Highpointe Communities has approximately 420 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 property is primarily for residential housing along with a component of multi-family along with a business park and community commercial.
On September 1, 2015, the City of San Marcos approved a term sheet that designated the parameters for which a Public Improvement District for the Trace Subdivision would be created. The key terms of this term included the following:
Maximum Total Indebtedness $19,500,000
Total Construction Dollars for which the developer can be reimbursed $15,500,000
The Maximum Total Equivalent Tax Rate could not exceed $0.50
In October 2016, the City Council adopted a Service and Assessment Plan for the Trace Public Improvement District. Periodic updates to this document are required by the San Marcos City Council usually on an annual basis. The Trace Development is to the point in its project where an update to the Service and Assessment Plan needs to be brought before the City Council. During the update of those documents, a request was made by the developer to amend the deal terms of the Public Improvement District so that the overall Business Park and Commercial equivalent tax rates could be reduced thus making the commercial property more competitive. This does slightly increase the overall residential equivalent tax but the total tax rate is still below the originally approved $0.50 tax rate.
Projected Tax Rate Equivalents
Residential and Multifamily $0.3387 per $100 of evaluation
Retail and Business Park $0.1900 per $100 of evaluation
Initial projections for all phases was approximately $0.46 per $100 of evaluation
This increases the overall maximum assessment to $22.1M up from $19.5M but it should be noted that this does not increase the overall maximum debt to be issued for this project ($19.5M) nor the amount that the developer will be reimbursed for construction improvements ($15.5M).
A council subcommittee has reviewed the developer’s proposal and is recommending approval and adoption of the Service and Assessment Plan by the City Council. We need to also amend the original term sheet which was approved on September 1, 2015. It should also be noted that the developer is contributing $2M towards the construction of a fire station.
Council Committee, Board/Commission Action:
A councilmember subcommittee made up of Mr. Gregson, Dr. Mihalkanin, and Mrs. Prewitt met on July 26, 2018.
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Recommendation:
A council subcommittee met on July 26, 2018 and recommends the resolution be approved.