PRESENTER: Presenter
Jared Werner, Chief Financial Officer
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SUBJECT: Title
Approval of a Resolution of The City of New Braunfels, Texas, Approving The Solms Landing Public Improvement District Reimbursement Agreement (Improvement Area #1 And Improvement Area #2) Between The City And Solms Landing Development, LLC
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DEPARTMENT: Finance
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COUNCIL DISTRICTS IMPACTED: 5
BACKGROUND INFORMATION:
When the Solms Landing Public Improvement District (PID) was first established, it was initially proposed that the first PID Bonds would be issued in advance of the construction of the public improvements in Improvement Area #1.
As the land plan for the development evolved and as contracts were secured for end users in the first phase of this development, the first PID bond issuance was deferred. However, the developer continued to move forward with constructing the majority of the public infrastructure (roads, drainage, etc.). In fact, a small portion of the public infrastructure has already been dedicated to the City. State law, as historically applied by the Attorney General's Office, has not allowed PID bonds to be issued to pay for public infrastructure that has already been dedicated before a reimbursement agreement has been entered into between the City and the developer. Therefore, the attached acquisition and reimbursement agreement is presented for City Council consideration. If approved, the PID bonds, once issued can be utilized to support the existing infrastructure included in Improvement Area #1, even if it is conveyed to the city prior to the first PID bond issuance.
ISSUE:
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FISCAL IMPACT:
There is no impact from the approval of the reimbursement agreement. As it relates to the potential PID bond issuance, the debt service will be paid exclusively from the property owners (residential and commercial) that reside within the development.
Recommendation
RECOMMENDATION:
Approval of the reimbursement agreement