[00:00:06]
[1. Call the meeting to order.]
HERE.I WANNA OFFICIALLY CALL THIS MEETING TO ORDER.
UH, I HAVE 6:00 PM I DO HAVE A FULL QUORUM OF CITY COUNCILS PRESENT, AND, UH, I WANTED TO REMIND EVERYONE, OPEN CARRY, UH, FIREARMS NOT PERMITTED WITHIN THESE COUNCIL CHAMBERS.
AND, UH, ALL NOTICES HAVE BEEN PROPERLY POSTED.
SO THE, THEREFORE, THE NEXT ITEM ON THE AGENDA
[2. City Manager Reports: City Council Calendar/Upcoming Events City Operations Conduct a briefing to discuss items for the 7:00 p.m. regular meeting]
IS CI, CITY MANAGER REPORT.GOOD EVENING, MR. CITY MANAGER.
IT'S, UH, GREAT TO SEE YOU, UH, THIS AFTERNOON.
UH, WE HAVE A FULL AGENDA TONIGHT AND A ESPECIALLY FULL BRIEFING.
I, UH, AGENDA WITH SEVERAL ITEMS ON IT.
BUT FIRST, I WOULD LIKE TO FORMALLY INTRODUCE A NEW MEMBER TO THE CEDAR HILL FAMILY.
UH, ASK MR. CHUCK FOX TO COME DOWN, PLEASE.
MR. CHUCK FOX'S ACTUALLY COMING BACK HOME TO CEDAR HILL WHERE HE, UH, SERVED FOR A NUMBER OF YEARS AS THE ACCOUNTING MANAGER UNDER FINANCE DIRECTOR HARDY BROWDER.
AND HE RETURNS TO US 15 YEARS LATER AS OUR NEW DIRECTOR OF FINANCE.
IN THE INTERIM, HE, UH, WAS, UH, IN SEVERAL POSITIONS IN THE MEDICAL SCHOOL WORLD AT, UH, UT SOUTHWESTERN AND UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER, AND HAS ALSO SERVED AS THEIR C F O IN BOTH OF THOSE POSITIONS.
SO HE'S BRINGING A WEALTH OF KNOWLEDGE, NOT JUST ON THE CITY SIDE, BUT ALSO IN THE, UH, PUBLIC EDUCATION SIDE TO US, WHICH, UH, I THINK IS GOING TO SERVICE REALLY WELL.
SO, WITHOUT FURTHER ADO, MR. CHECKBOX.
CITY COUNCIL MEMBERS, IT'S GLAD TO BE HERE THIS EVENING.
AND I WOULD JUST LIKE TO SAY I HAVE, UH, GOT 29 YEARS OF EXPERIENCE IN GOVERNMENTAL, UH, ACCOUNTING, BOTH WITH, UH, LOCAL GOVERNMENT IN THE CITY SECTOR AND IN THE STATE SECTOR, UH, PUBLIC HIGHER HEALTH RELATED HIGHER EDUCATION.
AND I'VE DONE EVERYTHING FROM, UH, FINANCE AND ACCOUNTING TO, UH, MANAGEMENT INFORMATION SYSTEMS, UH, ACCOUNTING, OPERATIONS, COMPLIANCE, FINANCIAL REPORTING, BUDGETING, LONG RANGE FINANCIAL PLANNING.
SO I'VE DONE A LITTLE BIT OF EVERYTHING.
UM, ALSO HAVE EIGHT YEARS IN THE, UH, US MARINE CORPS RESERVES.
I SERVED DURING, UH, 1988 TO 1996 AND GOT MY VETERAN STATUS FOR A LITTLE BIT OF TIME.
I HAD TO SERVE FOR DESERT STORM, UM, HAVE MY UNDERGRADUATE BACHELOR OF SCIENCE DEGREE IN ACCOUNTING AS WELL AS AN M B A IN FINANCE AND MY C P A AND LIKE QUARTER SAID, THIS IS MY SECOND TIME WITH CEDAR CITY OF CEDAR HILL.
I AM THRILLED TO BE BACK HERE.
IT'S GREAT TO SEE FAMILIAR FACES, EVEN AFTER 16 YEARS.
AND I'VE ACTUALLY LIVED IN CEDAR HILL FOR ABOUT 15 YEARS FROM, FROM NINE FIVE TO 2010.
SO I AM THRILLED TO BE HERE AND LOOKING FORWARD TO MANY, MANY YEARS IN THE FUTURE.
AND, UM, UH, YOU WILL ENJOY THE TEAM THAT YOU HAVE.
THEY HAVE, UH, SET RECORDS, UH, PRIOR TO YOUR ARRIVAL.
UH, SO OF COURSE WE EXPECT, UH, YOU KNOW, TO CREATE THE SAME LEVEL OF, UH, PROFESSIONALISM.
AND ALSO THANK YOU FOR YOUR SERVICE TOO.
YOU'LL RECALL WHAT YOU STARTED.
UH, CHUCK OFF WRIGHT HIS VERY FIRST DAY BEFORE WE EVEN GAVE HIM AN ID BADGE.
WE HAD HIM IN BUDGET MEETINGS, SO HE, UH, HE'S COME BY IT, HONESTLY, AND WE'RE VERY GLAD TO HAVE HIM.
ALRIGHT, I'D LIKE TO GO OVER THE, UH, CALENDAR NOW BECAUSE WE ARE NOW KNOCKING ON THE DOOR OF OUR FALL ENGAGEMENT, UH, SEASON, WHICH, AS YOU KNOW, OUR COMMUNITY IS, UH, EXTREMELY ENGAGED AND THAT ENGAGEMENT IS OFTEN DRIVEN BY SEVERAL MAJOR MARQUEE EVENTS, AND WE'RE ENTERING THAT SEASON NOW, UH, BEFORE WE GET THERE, WE GOTTA FINISH OFF AUGUST.
AND SO TOMORROW FROM 10 TO ONE, UH, THE CEDAR HILL, ALLEN E SIMS RECREATION CENTER, UH, WILL BE HOSTING A SENIOR INFORMATION AND WELLNESS EXPO.
SO ALL OF OUR NEIGHBORS AND, UH, SENIORS WILL BE THERE FROM 10 TO ONE.
UH, HEARING FROM, UH, VENDORS AND ALL OF THE SERVICES THAT ARE AVAILABLE TO THEM, UH, IN CEDAR HILL AS, UH, YOU KNOW, UH, THE COUNCIL HAS CONCENTRATED ON SENIOR LIVABILITY OVER THE PAST SEVERAL YEARS.
AND, UH, SO, UH, EVENTS LIKE THIS ONE HELPED TO CONTINUE TO ENGAGE WITH, UH, NEW AND, UH, LONG-TERM SENIOR RESIDENTS OF CEDAR HILL AND GET THEM CONNECTED WITH THE MANY SERVICES THAT ARE NOW AVAILABLE TO THEM.
UH, THIS FRIDAY, AUGUST 25TH AT SEVEN 15 IS, UH, THE NEXT, UH, LEGISLATIVE BREAKFAST SERIES.
UH, THIS ONE WILL HOST SENATOR ROYCE WEST AGAIN.
IT'LL BE HELD AT, UH, CHARLTON METHODIST HOSPITAL IN THEIR OUTPATIENT AUDITORIUM.
UH, THIS SATURDAY, AUGUST THE 26TH.
UH, THERE ARE A NUMBER OF THINGS TAKING PLACE, UH, FROM NINE TO ONE.
UH, THE CHAMBER OF COMMERCE WILL BE HOSTING THE, UH, DOWNTOWN FARMER'S MARKET.
IT'S BEEN A GREAT YEAR FOR THEM.
[00:05:01]
HAD SOME WONDERFUL VENDORS.UH, PARTICIPATION HAS REMAINED HIGH EVEN IN THE A HUNDRED DEGREE TEMPERATURES.
SO IF YOU HAVEN'T HAD A CHANCE TO CHECK THAT OUT, UH, YOU'RE DEFINITELY WELCOME AND ENCOURAGED TO DO SO.
UH, ALSO, WE'LL BE RESUMING, UH, OUR WELCOME TO CEDAR HILL TOUR FROM NINE TO 11:00 PM UH, NINE TO 11:00 AM SO NEW RESIDENTS, UH, HAVE BEEN WELCOMED FOR A TOUR OF THEIR BRAND NEW ADOPTED CITY.
THIS IS THEIR FIRST INTRODUCTION INTO OUR VISION AND OUR MISSION, AND THEN ALSO ENGAGEMENT WITH THEIR, UH, FUTURE, UH, NEIGHBORS, UH, IN THEIR CITY.
AND THEN FINALLY, UH, STATE REPRESENTATIVE YVONNE DAVIS IS HOSTING A TOWN HALL MEETING ON THAT SATURDAY AS WELL FROM, UH, 10:00 AM AND THAT ALSO WILL BE HELD AT, UH, METHODIST CHARLTON MEDICAL CENTER AUDITORIUM.
UH, MONDAY, SEPTEMBER 4TH IS LABOR DAY.
SO CITY OFFICES WILL BE CLOSED IN OBSERVANCE OF THE DAY.
AND THEN TUESDAY, SEPTEMBER 5TH, WE GET INTO THE ENGAGEMENT, UH, CALENDAR FROM SIX 30 TO EIGHT.
THAT IS THE NATIONAL NIGHT OUT KICKOFF EVENT.
NOT NATIONAL NIGHT OUT, BUT ACTUALLY SOMETHING THAT IS JUST AS ENERGETIC.
AND THIS IS THE GATHERING OF ALL THE BLOCK CAPTAINS AND THE NEIGHBORHOOD LEADERS THAT THEN HOST EVENTS ON NATIONAL NIGHT OUT SELL AT THE GRADY LAND BUILDING.
UH, EVERYBODY GETS THEIR, UH, INFORMATION AS WELL AS THE MATERIALS, AND THEY REALLY ARE THE DRIVING FORCE BEHIND THE SUCCESSFUL NATIONAL NIGHT OUTS THAT WE HAVE.
UH, COUNCIL HAS TRADITIONALLY ENJOYED COMING TO THAT.
SO WE WILL POST IT SO THAT ANYBODY THAT WANTS TO COME ON THE COUNCIL CAN BE THERE FOR THE ENTIRE TIME.
AND THAT'S FROM SIX 30 TO EIGHT AT, UH, AT THE GRADY LAND BUILDING.
UH, THURSDAY, SEPTEMBER 7TH, UH, OUR, UH, PARTNERS AT, UH, AT CHAT WILL BE HOSTING A MEET AND GREET FROM SIX 30 TO SEVEN 30 AT THE ALLEN E SIMS RECREATION CENTER.
SATURDAY, SEPTEMBER 9TH, UH, IS ANOTHER FARMER'S MARKET BETWEEN NINE AND ONE IN DOWNTOWN CEDAR HILL.
AND THEN OUR NEXT, UH, NEIGHBORHOOD WALK WITH, UH, THE POLICE DEPARTMENT AND THE COUNCIL AND ALL THE CITY FOLKS AND NEIGHBORHOOD LEADERS WHO PARTICIPATE IN THAT.
THIS ONE WILL BE, UH, FEATURING BEAR CREEK RANCH.
UH, AND, UH, WE'LL BE HELD BETWEEN 10 30 AND ONE, AND WE WILL MEET AND FORM UP AT BEAR CREEK PARK, UH, 30 MINUTES BEFORE THAT.
SO WE'LL SEND YOU ADDITIONAL INFORMATION AS WE GET CLOSE TO THAT.
UH, MOVING INTO MID-SEPTEMBER AS WE APPROACH OCTOBER.
UM, SEP, UH, SATURDAY, SEPTEMBER THE 23RD, UM, IS, UH, LATIN FEST.
SO THIS WILL BE OUR SECOND ANNUAL LATIN FEST AND A CELEBRATION OF LATINO HERITAGE HERE IN OUR COMMUNITY.
IT WILL AGAIN BE HELD AT VALLEY RIDGE PARK, UH, FROM THREE TO 10.
AND THEY HAVE A WHOLE HOST OF ACTIVITIES, EVENTS, AND PERFORMERS THAT NIGHT.
AND, UH, WE ARE LOOKING FORWARD TO ANOTHER BIG TURNOUT AS WE HAD IN THE FIRST ONE, TUESDAY, OCTOBER 3RD FROM SIX TO EIGHT IS, UH, THE NATIONAL NIGHT OUT.
SO AGAIN, WE WILL BE BREAKING UP INTO GROUPS AND MAKING SURE THAT WE HIT ALL OF OUR NEIGHBORHOODS.
AND YOU'LL RECALL THAT CEDAR HILL IS AMONGST THE VERY TOP ON PARTICIPATION IN THAT EVENT.
WE'RE LOOKING FORWARD FOR A ROBUST AND HOPEFULLY COOLER, UH, UH, ENVIRONMENT IN WHICH TO DO OUR ENGAGEMENT FOR NATIONAL NIGHT OUT THIS YEAR.
SO MAKE SURE YOU'VE GOT THAT ON YOUR CALENDAR, UH, FOR OCTOBER 3RD, SIXTH TO 8:00 PM UH, WEDNESDAY, UH, OCTOBER 4TH THROUGH FRIDAY, OCTOBER 6TH IS THE NEXT, UH, T M L TEXAS MUNICIPAL LEAGUE ANNUAL CONFERENCE.
IT ACTUALLY IS GOING TO BE HELD IN DALLAS, SO IT'LL BE VERY CLOSE AND EASY TO ACCESS.
WE'LL BE SENDING REGISTRATION INFORMATION OUT TO YOU SOON.
UM, THEN THE ONLY OTHER ITEM I WANT, JUST MAKE SURE THAT'S ON YOUR CALENDAR, IS, UM, COUNTRY DAY ON THE HILL.
AS ALWAYS, IT'S BEING HELD ON THE SECOND SATURDAY OF OCTOBER.
THE OLD SETTLERS REUNION WE HELD AT 5:00 PM ON THE FRIDAY BEFORE THAT, SO OCTOBER THE 13TH.
UH, I KNOW THAT THE COMMITTEE'S BEEN WORKING VERY HARD THIS YEAR.
THEY'VE GOT A LOT OF, UM, A LOT OF VENDORS ALREADY SIGNED UP.
IT'S LOOKING TO BE ANOTHER BANNER YEAR.
ALRIGHT, ANY QUESTIONS ON THE, UH, CALENDAR OR EVENTS COMING UP? ALL RIGHT.
WITH THAT, I'LL DO A QUICK ORIENTATION TO THE AGENDA FOR TONIGHT.
WE HAVE TWO BRIEFING ITEMS FOR YOU.
THE FIRST ONE IS A BRIEFING FROM PRE, UH, P THREE WORKS REGARDING A COMPREHENSIVE ANALYSIS FOR THE POTENTIAL DEVELOPMENT OF VALCON FRANCE COMMUNITY.
YOU WILL RECALL, WE HAVE BEEN WORKING WITH THE WALTON GROUP, UH, AND THE FOLKS AT MERITAGE HOMES ON A LARGE RESIDENTIAL PLAN DEVELOPMENT IN THE SOUTHWEST PART OF THE CITY.
UH, THEY HAVE BEEN VERY ENGAGING WITH US.
WE'VE NOW WORKED WITH THEM FOR, I THINK WE'RE APPROACHING TWO YEARS ON WHAT THE RIGHT TYPE OF THING WOULD BE.
UH, COUNCIL AND THE PLANNING AND ZONING COMMISSION HAVE MET A COUPLE OF TIMES, UH, WITH THIS GROUP AND, UM, UH, GAVE US INSTRUCTION A COUPLE OF MONTHS AGO TO GO FORWARD WITH THE PROCESS OF ADDITIONAL
[00:10:01]
ANALYSIS, UH, TO SEE IF WE CAN BRING THAT DEVELOPMENT TO FRUITION.SO TONIGHT IS A, UH, PRESENTATION, P THREE WORKS, WHO WILL BE WORKING FOR THE CITY TO HELP PROVIDE, UH, GUIDANCE AND INFORMATION ON, UM, HOW TO BE ABLE TO MAKE THAT DEVELOPMENT COME TO LIFE.
NOW THE SECOND ITEM IS A PRESENTATION REGARDING UPDATES TO THE CITY CITY'S BUILDING PERMIT FEES.
WE HAVE TWO REASONS FOR DOING THAT.
THE FIRST ONE IS IT'S BEEN QUITE SOME TIME SINCE WE'VE UPDATED THE FEES THEMSELVES.
AND SECOND, AS YOU KNOW, THE STATE LEGISLATURE HAS BEEN VERY BUSY IN THE DEVELOPMENT, UH, ARENA, AND THEY'VE MADE SEVERAL CHANGES TO STATE LAW AS IT REFLECTS, UH, AS IT RELATES TO DEVELOP PERMANENT FEES.
AND, UH, SO OUR, UH, CODE TEAM WILL BE HERE TONIGHT TO PRESENT THOSE ITEMS TO YOU.
UH, MOVING ON TO THE REGULAR AGENDA FOR TONIGHT.
OUR INVOCATION WILL BE HELD BY, UH, OUR FRIEND, PASTOR JOSH PRINCE FROM FIRST BAPTIST CHURCH, UH, DOWNTOWN CEDAR HILL.
WE HAVE A PROCLAMATION DESIGNATING AUGUST 23RD AS NATIONAL SENIOR CITIZENS DAY, OR, UH, AND, UH, THE MONTH OF SEPTEMBER AS SENIOR CENTER MONTH HERE IN CEDAR HILL.
UH, THEN WE HAVE CITIZENS FORUM.
WE HAVE ONE PUBLIC HEARING TONIGHT RELATED TO A CONDITIONAL USE PERMIT RELATED, UH, TO ALCOHOLIC BEVERAGE CELLS AND HOOKAH FOR A NEW INDIAN RESTAURANT THAT'S OPENED JUST DOWN THE STREET, UH, RECENTLY.
UM, WE DO HAVE A COUPLE OF ITEMS RELATED TO BUDGET AND TAX MATTERS.
THE FIRST ONE IS, UH, FORMALLY ACCEPTING THE 2023 CERTIFIED ROLES FROM DALLAS AND ELLIS COUNTY APPRAISERS.
AND THEN THE SECOND ONE WILL BE A, UH, AN ITEM TO DISCUSS AND CONSIDER THE PROPOSED PROPERTY TAX RATE TO SET A PUBLIC HEARING DATE FOR THE BUDGET AND TAX RATE, AND TO SET A DATE FOR THE ADOPTION OF THE BUDGET AND THE TAX RATE.
SO THAT IS A PROCESS THAT REQUIRES A RECORD VOTE.
YOU DO HAVE SOME INFORMATION AT YOUR DIOCESE TO HELP WALK YOU THROUGH, UH, THE MOTIONS AND THE PROCESS OF THAT.
UH, THEN WE HAVE, UH, SEVERAL ITEMS ON THE CONSENT AGENDA, AND THEN TWO ITEMS ON REGULAR AGENDA.
THE FIRST ONE IS A FINAL PLAT RELATED, UH, TO SOME PROPERTIES DOWNTOWN, UH, THAT ARE CALLED THE PHILLIPS PROPERTIES.
AND THE SECOND ONE IS A SITE PLAN, UH, ON PROPERTY ZONED INDUSTRIAL AT THE CORNER OF MOUNT LEBANON AND SOUTH CEDAR HILL ROAD.
ANY QUESTIONS ON EITHER AGENDA AT THIS TIME? COUNCILOR HAYDEN, DO YOU HAVE ANY QUESTIONS COMING? THANKS, MAYOR
WELL, THAT'S A GOOD BRIEFING THEN.
ARE THERE ANY ITEMS FROM COUNSEL TO BE PULLED FROM CONSENT? ALRIGHT, THANK YOU.
I WAS GONNA MAKE A QUICK INTRODUCTION ON, UH, ITEM THREE.
AND THAT WOULD BE FOR MR. KIRK MCDANIEL WITH P THREE WORKS, WHO WOULD THEN PROVIDE THE PRESENTATION.
UH, BEFORE YOU, BEFORE YOU CONTINUE, UM, DID YOU SAY YOU, YOU GOT A, DID YOU SAY YOU HAD A PRESENTATION? I DIDN'T HEAR YOU.
THAT'S SIR, I WAS INTRODUCING YOU.
[3. Receive a briefing from P3Works, LLC regarding a comprehensive analysis for the potential development of the Balcones Ranch community.]
AGENDA BEFORE YOU GET STARTED.UH, NEXT ITEM ON AGENDA IS RECEIVE A BRIEFING FROM P THREE WORKS L L C REGARDING A COMPREHENSIVE ANALYSIS FOR A POTENTIAL DEVELOPMENT OF THE BAES RANCH COMMUNITY.
GOOD EVENING, MAYOR AND COUNCIL.
THANK YOU FOR YOUR TIME TONIGHT.
UM, AS GREG SAID, MY NAME IS KIRK MCDANIEL OF P THREE WORKS.
SO WE ARE A PIT ADMINISTRATION FIRM.
WE SERVE LOTS OF CITIES ALL ACROSS THE STATE, UM, CLOSE TO A HUNDRED NOW LOTS IN THE D F W METROPLEX, ALSO SOME IN THE AUSTIN METROPLEX, AS WELL AS THE HOUSTON AREA AS WELL.
UM, SO TONIGHT I HAVE PREPARED FOR YOU A KIND OF A PI BRIEFING.
KIND OF GIVE AN OVERVIEW OF THE FEW DIFFERENT TYPES OF PIS I UNDERSTAND COUNCIL'S VERY FAMILIAR WITH, UH, MAINTENANCE PIDS.
Y'ALL ALREADY HAVE SEVERAL THAT Y'ALL OVERSEE.
UM, THE SPECIFIC TYPE OF PI THAT I'M REALLY GONNA SPEND MOST OF MY TIME TALKING ABOUT TONIGHT IS WHAT I RECALL TO RECALL, UH, EXCUSE ME, REFER TO AS A CAPITAL PI.
AND THAT'S USED, UH, FOR PUBLIC INFRASTRUCTURE, LARGE SCALE PUBLIC INFRASTRUCTURE.
AND SO I'LL EXPLAIN A LITTLE BIT ABOUT CAPITAL PIS AND KIND OF THE DIFFERENCES WITH THE MAINTENANCE PIS AND THEN HOW THEY WORK AND KIND OF THE INCENTIVES FOR THE CITY TO BE USING THEM.
UM, FEEL FREE TO INTERRUPT ME, ASK ANY QUESTIONS AT ANY TIME.
THERE YOU GO, OF THE FLOW AND HAPPY TO ANSWER ANY QUESTIONS.
DO I DO THIS SLIDE? SORRY, ONE HERE.
UH, SO CHAPTER 3 72, THE LOCAL GOVERNMENT CODE IS THE ACTUAL STATUTE WHICH GOVERNS THE PIS.
IT LAYS OUT WHAT YOU CAN DO AND IT LAYS OUT WHAT YOU CAN'T DO WITH PIS.
UM, BEFORE I GO ANY FURTHER THOUGH, I REALLY WANTED TO LAY OUT KIND OF A COMPARISON OF CAPITAL PIS VERSUS THOSE MAINTENANCE PIDS.
SO IF THE MAINTENANCE PIS, THE CITY IS HAVING TO GO AND LEVY THE ASSESSMENTS EVERY SINGLE YEAR, IT'S TYPICALLY BASED ON A RATE SIMILAR TO ADOR TAX RATE OF THE CITY.
UM, AND THEN IT'S USED FOR OPERATIONS AND MAINTENANCE.
SOMETIMES THEY'RE REFERRED TO AS, UH, O AND M PIS, OPERATIONS AND MAINTENANCE PIS.
THOSE ARE TYPICALLY GOVERNED BY CITY STAFF AND THEY'RE ASSOCIATED WITH THE BUDGET PROCESS AND USED FOR, UH, SPECIFIC SERVICES WITHIN THAT DISTRICT.
[00:15:01]
WHEREAS FOR THE CAPITAL PIS, YOU'RE REALLY LEVYING AN ASSESSMENT USUALLY ONCE, UM, IF IT'S A LARGE SCALE PHASE DEVELOPMENT, YOU MIGHT LEVY ASSESSMENTS A COUPLE OF TIMES, BUT IT WOULD BE ON DIFFERENT, UH, PHASES OF THE DEVELOPMENT.SO IN THIS CASE, IF YOU HAVE PHASE ONE, YOU'RE GONNA LEVY ON IT THE ONE TIME AND THEN YOU'RE DONE LEVYING ASSESSMENTS.
UM, THE RESIDENTS, THE PROPERTY OWNERS WILL THEN PAY THAT ASSESSMENT OFF OVER TIME IN WHAT WE REFER TO AS ANNUAL INSTALLMENTS, RATHER THAN BEING BASED ON A SPECIFIC TAX RATE.
IT'S USUALLY BASED ON AN ACTUAL ASSESSMENT AMOUNT.
AND THERE'S A FEW DIFFERENT PARAMETERS AND METRICS THAT WE LOOK AT ALONG WITH CITY STAFF AND THE THE DIFFERENT COM UH, CONSULTING GROUPS THAT ARE WORKING ON THE PI TO HELP DEVISE, UM, WHAT THE SPECIFIC AMOUNT SHOULD BE.
BUT AT NO POINT WILL IT EVER EXCEED THE AMOUNT OF PUBLIC INFRASTRUCTURE COST.
SO THE ASSESSMENT IS ALWAYS GONNA BE TIED TO THAT PUBLIC INFRASTRUCTURE COST, ROADS, WATER, SEWER, STORM DRAINAGE, UM, AND THEN THE SOFT COSTS THAT ARE REQUIRED TO KIND OF PUT THOSE IN PLACE.
UM, ULTIMATELY THOUGH IT'S A PARTNERSHIP WITH THE DEVELOPER.
AND SO IN THIS CASE, UM, YOU GUYS ARE WORKING WITH THE MERITAGE GROUP AND THE WALTONS, UM, RIGHT, THEY WOULD BE PUTTING IN THE INFRASTRUCTURE AND THEN THE PIT IS THIS MECHANISM.
IT'S A TOOL TO REIMBURSE THEM FOR THAT PUBLIC INFRASTRUCTURE.
UM, AND SO IT'S REALLY VERY MUCH A PARTNERSHIP, UM, WITH A DEVELOPER TEAM.
SO THAT'S JUST A LITTLE BIT OF KIND OF, OF THE MAJOR DIFFERENCES BETWEEN THOSE TWO.
ANY QUESTIONS BEFORE I GO ANY FURTHER? I HAVE A LOT OF QUESTIONS, BUT, UM, AT, CAN YOU GO BACK ONE SLIDE? YES, SIR.
THE, THE VERY FIRST, UM, ITEM UNDERNEATH THE CAPITAL SIDE, THE, THE LEVIE ONCE, UM, YOU KNOW, THIS IS GONNA BE A PRETTY LARGE SITE.
I IMAGINE IT'S GONNA BE MULTIPLE PHASES.
UH, THIS COULD BE 20, 25 YEARS BEFORE IT'S BUILT OUT, RIGHT? SO I'M JUST CURIOUS, HOW DOES THAT LEVIED ONCE WORK? UM, IF THERE, IF YOU ARE IN THAT FIRST PHASE, UH, DO YOU HAVE THAT SAME RATE, UH, THROUGHOUT THE, THE NEXT 20 YEARS? AND ALSO, UH, AND YOU MAY TALK ABOUT IT, BUT I GUESS I COULD ASK NOW, HOW LONG IS THAT? HOW LONG IS THE P IS IT 30 YEAR, UH, ASSESSMENT? UM, SO IS IT FAIR FOR THE, FOR THE RESIDENTS IN THAT FIRST PHASE TO BE ABLE TO, TO BE PAYING FOR 20 SOMETHING YEARS AND THEN YOU HAVE THAT LAST PHASE WHO, WHO MAY BE IN THAT LAST FIVE YEARS OF IT? SO THAT'S KIND OF REALLY MY MAIN TWO QUESTIONS, BUT YES SIR.
SO EACH LEVEE OF ASSESSMENT IS TI IS TIED TO ITS OWN TIMEFRAME.
SO WHEN YOU HAVE YOUR PHASE NUMBER ONE, UM, YOU'RE GONNA LEVY ASSESSMENTS ON THAT PROPERTY, ASSUMING OF COURSE COUNSEL WANTS TO MOVE FORWARD WITH IT, YOU WOULD LEVY ON THAT PROPERTY THE ONE TIME.
AND THAT WOULD BE FOR TYPICALLY A 30 YEAR ASSESSMENT.
UM, WHEN YOU GET TO PHASE TWO, IT'S GONNA HAVE ITS OWN PORTION OF COSTS, ITS OWN PUBLIC INFRASTRUCTURE, AND YOU WOULD LEVY ON IT, UH, AS WELL.
AND THAT WOULD ALSO BE FOR A 30 YEAR TIME.
YOU AS IN THE COUNCIL, YOU THE CITY COUNCIL? YES, SIR.
SO WE WOULD SEIZE PHASE TWO COME BEFORE US.
OKAY, SIR, YOU, YOU'RE ANSWERING MY QUESTION.
SO EVERY TWO OR THREE YEARS AS THEY'RE APPROACHING THAT, UH, PHASE OF THE DEVELOPMENT, YES.
THE DEVELOPER WOULD COME IN AND THEY WOULD SAY, HEY, HERE'S, UH, OUR UNIT COUNTS.
WE WOULD LIKE YOU TO LEVY ASSESSMENTS ON THE PROPERTY.
UH, AND THERE'D BE SOME CONVERSATIONS AND CITY STAFF WOULD WORK WITH THEM.
AND THEN PRESUMING COUNCIL WANTS TO MOVE FORWARD, HE WOULD LEVY ASSESSMENTS.
SO ESSENTIALLY WE WERE LIVIA ZONE, THAT FIRST PHASE WOULD BE THAT ZONE.
WE REFER TO THEM IN THE DOCUMENTS.
WE REFER TO THEM AS IMPROVEMENT AREAS.
UM, BUT THEY'RE TYPICALLY TIED TO THE CONSTRUCTION PHASES.
SO IMPROVEMENT AREA ONE IS PHASE ONE.
SO MIKE, COUNCIL MEMBER VERSUS PHASE ONE, UH, IS THERE A RATIO OR COULD THERE BE A BIG DISPARITY BETWEEN ONE VERSUS TWO? OR IS THERE SOME KIND OF CAPPING OR LIMITATION BETWEEN THOSE TWO? SO TYPICALLY THE LIMITATIONS ON THE ASSESSMENT ARE GONNA BE STRUCTURED WHEN THE DEVELOPMENT AGREEMENT IS AGREED TO.
SO THERE'S A FEW DIFFERENT METRICS FOR COUNCIL TO KEEP IN MIND IN THOSE, UH, DISCUSSIONS OF THE DEVELOPMENT AGREEMENT.
TYPICALLY WHAT YOU'LL SEE IS A, UH, MAXIMUM TAX STACK.
SO WHAT THAT IS, IS THAT'S REFERRING TO ALL OF THE DIFFERENT TAXING ENTITIES THAT ARE ON THE PROPERTY.
SO THE CITY, THE COUNTY, UM, THE I S D, ALL OF THOSE DIFFERENT ENTITIES.
UM, OVERALL, IF YOU COMBINE ALL OF THEIR TAXES TOGETHER, WHERE ARE YOU AT? UM, THAT'S, THAT'S WHAT THE TAX STACK IS REFERRED TO.
SO THERE'S A CERTAIN AMOUNT WHERE THE MARKET CAN NO LONGER BEAR AN ADDITIONAL ASSESSMENT, UM, THAT GOES ABOVE AND BEYOND THAT TAX STACK.
IT CAN ALWAYS BEAR SOME, BUT THERE IS A, A MAX THAT KIND OF, THAT THE MARKET CAN CONVEYOR.
UM, AND SO TYPICALLY THAT WOULD GET IDENTIFIED OR SOMETHING TO ITS EQUIVALENT WOULD GET IDENTIFIED IN THE DEVELOPMENT AGREEMENT.
AND SO, UH, SOMETIMES WE SEE A $3 TAX STACK.
UM, SO ALL OF THOSE DIFFERENT TAX RATES ADDING UP TO $3 FOR EVERY A HUNDRED DOLLARS OF VALUE.
UM, AND SO WHEN YOU LEVY ON IMPROVEMENT AREA NUMBER ONE, THAT'S WHAT, THAT'S ONE OF THE ITEMS THAT
[00:20:01]
THE CITY COUNCIL IS LOOKING OR CITY IS LOOKING AT.AND THE DEVELOPER TEAM IS ALSO LOOKING AT, THEY WANT TO REACH THAT $3 TAX STACK.
WELL, OBVIOUSLY AFTER THREE YEARS, WHEN YOU GET TO THE NEXT PHASE, DIFFERENT TAX RATES CAN CHANGE.
UM, THEY'RE STILL PROBABLY GONNA BE TARGETING THAT SAME $3 TAX STACK SO THAT THE RESIDENTS IN PHASE ONE ARE PAYING THE SAME AMOUNT OF THE ASSESSMENT AS THE RESIDENTS IN PHASE TWO.
AND I KNOW WE'LL GET THROUGH ALL THE MEAT OF IT ONCE THE, ONCE THE RECOMMENDATIONS ARE DONE AND LOOKED AT, BUT THANKS FOR THAT.
COUNCILWOMAN DANIELS, UH, WOULD THE P BE STILL OPERAT IN OPERATION AS IT IS NOW WITH THE BOARD? ARE YOU TALKING ABOUT CHANGING THE WHOLE CONCEPT OF THE PIS? UM, SO THIS WOULD BE A NEW PIG FOR THE B'S RANCH DEVELOPMENT.
AND SO IT'D BE A NEW PIG TIED TO SPECIFIC COSTS, UH, FOR INFRASTRUCTURE IN THAT SPECIFIC AREA THAT THE DEVELOPER IS REQUESTING.
SO THE DEVELOPERS WOULD BE IN, WILL THE BOARD BE DIMINISHED? UM, TH THIS WOULD BE TOTALLY SEPARATE FROM ANY OTHER PIS THAT THE CITY CURRENTLY HAS.
SO YOU SAID IT'D BE SEPARATE FROM WHAT WE HAVE NOW? YES, MA'AM.
IT WOULD BE COMPLETELY SEPARATE THE PI BOUNDARY.
SO THE, THE PID BOUNDARY FOR THIS SPECIFIC AREA WOULD BE, UH, SET OVER A SPECIFIC AREA OF A NEW DEVELOPMENT THAT'S OCCURRING.
UM, SO THESE CAPITAL PIS, THE WAY THAT THEY FUNCTION IS THAT THEY'RE CREATED OVER A SPECIFIC CONTIGUOUS AREA.
UM, IT CAN EITHER BE IN THE CORPORATE LIMITS OF THE CITY OR IT CAN BE IN THE CITY'S E T J.
COMMONLY WE SEE IN DEVELOPMENT AGREEMENTS, UH, AN AGREEMENT BETWEEN FOR THE DEVELOPER TO ANNEX THE PROPERTY INTO THE CITY LIMITS AS ONE OF THE, UH, THEIR OBLIGATIONS AND EXCHANGE FOR THE PIT.
AGAIN, THAT'S IDENTIFIED IN THE DEVELOPMENT AGREEMENT.
UM, ASSESSMENTS ARE LEVIED ON THE PROPERTY BASED ON THE SPECIAL BENEFIT THAT THAT PROPERTY IS GONNA RECEIVE FROM THOSE PIT IMPROVEMENTS.
SO THERE'S ROADS, WATER, SEWER GETTING PUT IN.
THAT PROPERTY WITHIN THE PIT IS THE ONES THAT ARE GONNA BENEFIT FROM THAT PUBLIC INFRASTRUCTURE.
SOMETIMES THERE ARE, UH, LARGE SCALE, MAJOR IMPROVEMENTS, UM, THAT COULD BENEFIT MORE THAN JUST THE PI AREA.
UM, AND IF THAT'S THE CASE, THEN THEY CAN RECEIVE A PROPORT PROPORTIONAL AMOUNT OF THE PI FUNDING.
SO IN OTHER WORDS, THE PI CAN FUND ONLY A PORTION OF THOSE BECAUSE IT CAN ONLY FUND THAT WHICH BENEFITS ITS PROPERTY.
UM, THESE ASSESSMENTS THAT GET LEVIED ARE DIFFERENT FROM TAXES BECAUSE IT'S BASED ON A FIXED DOLLAR AMOUNT.
SO YOU'RE LEVYING, I'LL MAKE UP A NUMBER, $10 MILLION IN YEAR ONE.
THAT $10 MILLION WON'T CHANGE.
IT'LL ONLY GO DOWN AS THE INSTALLMENTS ARE PAID OVER THE 30 YEARS.
UM, HOWEVER, IT CAN ALSO BE PREPAID AT ANY TIME.
AND SO RESIDENTS CAN, UH, REQUEST A PREPAYMENT AND PAY OFF THEIR PERSONAL ASSESSMENT ON THEIR PROPERTY AT ANY TIME, AND WE HELP, UH, COORDINATE THAT PROCESS WITH THEM AND PREPARE PREPAYMENT QUOTES, UM, TO HELP ASSIST IN THAT ENDEAVOR.
UM, ADDITIONALLY, THESE ARE ASSESSMENTS THAT TRAVEL WITH THE, UH, WITH THE LAND ITSELF.
SO IT'S A LIEN THAT'S TIED TO THE LAND.
AND SO A PROPERTY OWNER COULD COME BUY A HOUSE WITHIN A PIT, PAY THE ANNUAL INSTALLMENT FOR FIVE, 10 YEARS, AND THEN CHOOSE TO SELL THE PROPERTY.
THEY'RE NOT REQUIRED TO PAY OFF THAT LIEN.
IT WOULD GO, IT WOULD TRANSFER TO THE NEXT PROPERTY OWNER.
UM, GENERALLY THESE PIDS ARE BEING USED TO FUND ONE OF TWO THINGS.
SO EITHER DEBT SERVICE ON BOND IS ON BONDS THAT ARE BEING ISSUED, OR IT'S JUST BEING USED AS A REIMBURSEMENT AGREEMENT TO REIMBURSE THE DEVELOPER WITH INTEREST FOR THAT PUBLIC INFRASTRUCTURE.
SO WHAT TYPE OF BONDS WOULD BE USED TO FUND THIS? ARE THESE CERTIFICATES OF OBLIGATION OR IS THIS SOMETHING WE'RE GONNA HAVE TO CALL AN ELECTION ON? NO, UH, THESE ARE VERY SPECIAL BONDS.
SO THESE ARE SPECIAL ASSESSMENT REVENUE BONDS.
UM, I HAVE SOME SLIDES ON IT A LITTLE BIT LATER, BUT THEY'RE NON-RECOURSE TO THE CITY.
AND SO THE ONLY, UH, ITEM THAT'S BACKING THOSE BONDS IS THE LAND ITSELF.
AND SO IF FOR SOME REASON SOMETHING WENT TOTALLY HAYWIRE AND THERE WEREN'T, UH, THERE WASN'T ENOUGH REVENUE TO MAKE THE DEBT SERVICE PAYMENTS, THE CITY WOULD NOT BE LIABLE FOR IT.
UM, IT'S ONLY BACKED BY THE PROPERTY ITSELF.
ADDITIONALLY, THE OTHER COMPONENT ABOUT PIS, IT'S IMPORTANT TO NOTE HERE, IS THAT THEY ARE SELF-SUFFICIENT.
SO THERE ARE ADMINISTRATIVE EXPENSES REQUIRED TO, UM, ADMINISTER A PI, BUT THOSE ARE ALL, THOSE ARE FUNDED THROUGH ANNUAL COLLECTION COSTS THAT ARE INCLUDED IN THE ANNUAL INSTALLMENT.
AND SO THERE'S NO IMPACT TO THE CITY'S GENERAL FUND.
IT'S, UH, THE ADMINISTRATION OF THE PIT IS FUNDED THROUGH THE PIT ITSELF.
SO SOME BIG PICTURE CONSIDERATIONS.
THERE'S LOTS OF DIFFERENT SPECIAL, UH, TAXING DISTRICTS AND SPECIAL TOOLS THAT CAN FINANCE PUBLIC INFRASTRUCTURE.
ONE OF THE VERY SPECIAL THINGS ABOUT
[00:25:01]
CAPITAL PIS IS THAT THEY'RE NOT SEPARATE POLITICAL SUBDIVISIONS.IT'S FULLY CONTROLLED BY THE CITY COUNCIL.
SO IT'S ALWAYS THE CITY COUNCIL THAT IS, UH, THE ONE DETERMINING IF YOU'RE GONNA ISSUE BONDS OR IF YOU'RE GOING TO LEVY ASSESSMENTS.
UM, YOU DON'T HAVE TO WORRY ABOUT SOME OTHER BOARD.
UH, ADDITIONALLY, IT'S ANOTHER WAY TO EXTEND YOUR PUBLIC INFRASTRUCTURE WITHOUT BURDENING YOUR CURRENT TAXPAYERS BECAUSE IT'S GONNA BE A NEW REVENUE SOURCE THAT'S PRODUCING THIS REIMBURSEMENT.
UM, AND SO IT'S A REALLY BIG INCENTIVE TO DEVELOPERS 'CAUSE YOU'RE ESSENTIALLY OFFERING THEM, EXCUSE ME, UH, YOU'RE ESSENTIALLY OFFERING THEM, UH, A VERY LARGE INCENTIVE IN ORDER TO, UH, RECEIVE A PIT THAT'S A BIG DEAL TO THEM.
AND SO IT'S A INCENTIVE TOOL IN YOUR DEVELOPMENT AGREEMENT NEGOTIATIONS.
ADDITIONALLY, YOU'RE NOT OBLIGATING ANY OF YOUR CITY REVENUES, SO THERE'S NOT, UH, SALES TAX GRANTS TIED TO IT.
ANY NEW SALES TAX THAT'S PRODUCED FROM IT IS, UH, RETAINED BY THE CITY.
IT'S NOT TIED TO THE PIT IN ANY WAY.
YOU'RE NOT GIVING UP ANY OF YOUR AVALOR TAX DOLLARS.
UM, THIS IS A NEW REVENUE STREAM, AND SO IT DOESN'T BURDEN THE CITY'S, UH, IT DOESN'T BURDEN THE CITY IN ANY WAY.
INSTEAD IT'S CREATING NEW REVENUE FOR YOU IN ADDITION TO ALL THE TAXABLE VALUE THAT WOULD BE COMING ONLINE.
AND THEN, UH, LASTLY, IT CAN BE, PITS CAN BE USED TO TIE INTO THE CITY'S COMPREHENSIVE PLAN, THOROUGHFARE PLAN, PARKS PLAN, LOTS OF YOUR OTHER PLANS.
UM, AND THAT'S SOMETHING THAT WE WOULD LOOK INTO WITH CITY STAFF AS WE ARE EVALUATING THE PIT.
SO, UM, IN A, IT'S NOT UNCOMMON FOR A DEVELOPER THAT WANTS TO PUT IN THE SUBDIVISION TO PAY FOR THE INFRASTRUCTURE, THE STREETS, THE WATER, THE SEWER, AND THEN TRANSFER THOSE COSTS TO THE, TO EACH LOT, LOT AS A LOT IS PURCHASED TO BUILD A HOME.
IS IT THAT THE SIZE OF THE INFRASTRUCTURE COST IS SO GREAT THAT YOU'RE, YOU WANT TO CONSIDER THIS AS AN OPTION AS OPPOSED TO THE TRADITIONAL METHOD? Y? YES, SIR.
UM, THE, THE INFRASTRUCTURE COSTS ARE SO LARGE THAT THE DEVELOPER IS REQUESTING THIS INCENTIVE.
UM, THAT SAID, IT'S AN INCENTIVE.
SO IT'S UP TO THE CITY TO WHETHER OR NOT THEY WANT TO ACTUALLY PROVIDE THAT INCENTIVE OR REQUEST THAT THEY DO IT THE TRADITIONAL WAY.
HOWEVER, UH, WHAT I'LL SAY IS THAT WHEN YOU USE A PI, OFTENTIMES THE CITY'S ABLE TO NEGOTIATE HIGHER QUALITY STANDARDS.
UM, I THINK IT'S ACTUALLY ON MY NEXT SLIDE HERE.
BUT ONE OF THE REASONS WHY YOU WOULD USE A PIT IS BECAUSE YOU CAN, UH, TIE IN HIGHER DEVELOPMENT STANDARDS WITHIN YOUR DEVELOPMENT AGREEMENT.
SO YOU CAN TIE THE DEVELOPER TO HAVING TO DO A HIGHER QUALITY PRODUCT OR A, A DIFFERENT TYPE OF PRODUCT THAT'S MORE IN KEEPING WITH WHAT THE CITY WANTS.
AND SO I KNOW ONE OF THE, THE PARAMETERS OF THIS ONE IS THAT IT'S A VERY HIGH QUALITY DEAL THAT COSTS MORE MONEY.
AND SO THE PIT IS ABLE TO MAKE UP SOME OF THE DIFFERENCE OF THAT.
UH, KIRK, UM, I THINK WE HAVE A COMMENT QUESTION FROM COUNCILMAN MAR.
UM, I THINK THAT PROBABLY THE QUESTIONS THAT I WOULD HAVE WOULD BE, UH, A PART OF THE, THE REPORT THAT HOPEFULLY IS FORTHCOMING.
BUT FOR NOW, DO YOU ANTICIPATE THAT A PART OF THAT REPORT WILL BE OTHER METHODS OF FINANCING? OR WILL YOU ONLY BE FO FOCUSING ON PIS SINCE THERE ARE OTHER KIND OF AVENUES FOR THIS? UM, SO WE ARE A PIT ADMINISTRATION FIRM, AND SO WE ARE FOCUSED ON PUBLIC IMPROVEMENT DISTRICTS.
UM, SOMETIMES WE'LL INCLUDE, WE'LL DO, UM, ANALYSES ON TAX INCREMENT REINVESTMENT ZONES.
BUT ONE OF THE SPECIFIC THINGS ABOUT US AS A COMPANY IS THAT WE ONLY REPRESENT CITIES.
AND IF LOTS OF THE OTHER, UM, INCENTIVE TOOLS HAVE SEPARATE BOARDS THAT ARE NOT NECESSARILY CITY CONTROLLED.
AND SO WE DON'T WORK ON THOSE PROJECTS.
UM, WE'RE SPECIFIC TO ONLY REPRESENTING CITIES.
AND SO WE, WE FOCUS ON PIS AND WE FOCUS ON TAX INCREMENT REINVESTMENT ZONES.
UM, ADDITIONALLY PART OF IT JUST DEPENDS ON THE CURRENT STATE OF THE DEVELOPMENT AGREEMENT AND WHERE, WHAT, WHAT TYPE OF INCENTIVES THE DEVELOPERS REQUESTED AT THIS POINT.
UM, IF THEY'RE FOCUSED ON A BID SPECIFICALLY, THEN WE PROBABLY WOULDN'T OPEN IT UP TO OTHER, UH, FINANCING SOURCES BECAUSE THAT'S NOT WHAT THEY'RE REQUESTING.
AND THAT MAY NOT BE WHAT THE CITY WANTS.
BUT ULTIMATELY WE, WE FOLLOW WHAT CITY COUNCIL WANTS.
AND SO IF YOU WANT TO DO A DIFFERENT INCENTIVE STRUCTURE, THEN THAT'S FINE AND WE'LL HELP ASSIST HOWEVER WE CAN.
ANY OTHER QUESTIONS? PETER? TEAM? UM, SO THERE'S LOTS OF DIFFERENT PEOPLE ON THE CITY TEAM.
UM, BUT THESE ARE ULTIMATELY, IF WE WANNA MOVE, IF THE CITY COUNCIL WANTS TO MOVE FORWARD ON THE PROJECT, UM, TYPICALLY WE END UP HAVING WEEKLY CALLS OR BIWEEKLY CALLS, UH, WITH THE CITY TEAM AND WITH THE DEVELOPER TEAM.
SO ON THE CITY TEAM, YOU HAVE THE CITY'S FINANCIAL ADVISOR.
YOU HAVE THEIR BOND COUNCIL, YOU HAVE THE CITY ATTORNEY, YOU OF COURSE HAVE CITY STAFF, UM, CITY ENGINEER.
THERE'S, THERE'S LOTS OF DIFFERENT COMPONENTS 'CAUSE THERE'S LOTS OF MOVING PARTS, UH, THAT WORK WITH PIS.
IN ADDITION, IF THIS DOES BECOME A BONDED TRANSACTION, UM, THEN
[00:30:01]
THERE'S ALSO AN UNDERWRITER THAT GETS BROUGHT IN TO HELP COORDINATE WITH THE BOND MARKET, UM, THE SELLING OF THOSE BONDS, UM, AS WELL AS A SEPARATE TRUSTEE THAT WOULD ACTUALLY HOLD THOSE BOND DOLLARS IF THAT IS HOW THE TRANSACTION OCCURS, IF THAT IS THE PARAMETERS OF THE DEAL.SO SOME OF THE FINANCIAL IMPLICATIONS OF THE CITY, I'VE TALKED ABOUT, UH, THESE A LITTLE BIT.
BUT IF DEBT IS ISSUED THROUGH THE PI, THEN IT'S TOTALLY NON-RECOURSE TO THE CITY.
AND SO IT'S ONLY BACKED BY THE PROPERTY.
UM, BECAUSE OF THAT, ONE OF THE METRICS THAT WE REALLY LOOK AT WHEN WE'RE EVALUATING A PID DEAL IS WHAT'S CALLED THE VALUE TO LIEN.
AND SO IT'S THE VALUE OF THE PROPERTY VERSUS, UM, THE ASSESSMENTS THAT WOULD GET LEVIED ON THE PROPERTY.
AND SO YOU TYPICALLY DON'T WANT TO SEE THAT DROP BELOW A THREE TO ONE, UM, THREE TIMES THE VALUE OF THE LAND VERSUS THE LIEN THAT WOULD BE PUT ON IT OR THE ASSESSMENT THAT WOULD BE PUT ON IT.
UM, THAT SAID, EVERY PROJECT IS DIFFERENT.
THERE'S LOTS OF DIFFERENT, UH, UNIQUE STRUCTURES THAT CAN BE ACHIEVED.
AND SO THAT'S ONE OF THE THINGS THAT FINANCIAL ADVISOR AND BOND COUNCIL REALLY WEIGH IN ON, IS, UM, THAT VALUE TO LANE AND WHAT THEY'RE COMFORTABLE WITH.
'CAUSE THEY REALLY WILL HAVE THE BEST READ ON WHAT THE MARKET IS AND WHAT'S THE SAFEST, UH, ROUTE TO GO.
UM, PID DEBT ISSUANCES THOUGH, DOESN'T HAVE ANY IMPACT ON THE CITY'S BONDING CAPACITY.
THE CITY GETS TO KEEP ALL OF ITS EXISTING REVENUE STREAMS. UM, IT DOES COUNT AGAINST BANK QUALIFIED DEBT LIMIT.
AND, BUT THERE'S ALSO LANGUAGE THAT CAN BE INCLUDED IN DEVELOPMENT AGREEMENTS SO THAT IF YOU ACTUALLY DO REACH THAT METRIC, THE DEVELOPER IS REQUIRED TO PAY ANY OVERAGES THAT WOULD EXCEED IT.
UH, SO THAT WAY THE CITY'S KEPT WHOLE AND NOT NOT HAVING ANY RECOURSE FROM ANY PIT BONDS THAT ARE ISSUED.
ADDITIONALLY, AS I MENTIONED, THE PI CREATION ADMINISTRATION IS ALWAYS, IS FUNDED THROUGH THE PI, SO IT'S FUNDED THROUGH THOSE ANNUAL COLLECTION COSTS AND AGAIN, HAS NO IMPACT ON THE CITY'S GENERAL FUND.
UM, AND ADDITIONALLY, AT THE BEGINNING OF THE PROCESS BEFORE THE PIS ACTUALLY CREATED, THERE'S NOT, UH, AN ABILITY TO COLLECT THOSE ANNUAL COLLECTION COSTS, RIGHT? SO THE WAY THAT THE CONSULTING COSTS ARE FUNDED IS THROUGH A DEVELOPER ESCROW.
SO THE CITY AND THE DEVELOPER ENTER INTO AN AGREEMENT THAT THE CITY'S GONNA CONSIDER A PI.
UM, WELL, THE ESCROW, THE ESCROW AGREEMENT ESSENTIALLY LAYS OUT THAT THE CITY'S CONSULTING SERVICES WILL BE FUNDED THROUGH A ESCROW DEPOSIT THE DEVELOPER PUTS DOWN.
SO AS, UH, CONSULTING FEES ARE, UM, INCURRED, THOSE GET PAID OUT THROUGH THAT DEVELOPER'S ESCROW.
AND SO IF IT REACHES A, UH, LOW ENOUGH AMOUNT, THEN THE DEVELOPER'S REQUIRED TO DEPOSIT ADDITIONAL FUNDS INTO IT.
UM, AGAIN, MAKING SURE THAT THE CITY'S WHOLE AND THAT THERE'S NO IMPACT TO THE CITY'S GENERAL FUND.
ANY QUESTIONS? YOU HAVE? ANY QUESTIONS? COUNCIL MEMBER? YES, SIR.
FOR A POTENTIAL BUYER, UM, WHAT WOULD THIS LOOK LIKE? I MIGHT BE JUMPING AHEAD.
IF A PROPERTY IS VALUE THAT $500,000, AND I KNOW EVERYONE, EVERY, EVERY PROJECT IS DIFFERENT, THEY'LL HAVE A DIFFERENT LE LEVEL.
BUT IF THERE IS, WHAT, WHAT WOULD THE AVERAGE ON A $500,000 HOME, WHAT WOULD THAT ASSESSMENT LOOK LIKE TO A POTENTIAL HOME BUYER? UM, IT, IT DEPENDS ON THE PARAMETERS OF THE DEAL.
UM, IN THIS TRANSACTION, I HAVEN'T SEEN ANY OF THE DOCUMENTS YET, AND SO I COULDN'T SPEAK TO THAT.
BUT THAT IS SOME, THAT IS INFORMATION THAT WE WOULD BRING FORWARD TO YOU IF WE MOVE FORWARD WITH THE PROJECT, UM, IS KIND OF WHAT THAT IMPACT TO THE HOMEOWNER IS.
I CAN SAY ON OTHER PIS THAT I'VE WORKED ON MM-HMM.
UM, IT, IT REALLY DOES DEPEND ON EVERY DEAL, THOUGH.
SOME OF THEM CAN BE LOWER, SOME OF THEM IT'LL BE HIGHER.
SO THERE'S A FEW DIFFERENT TYPES OF CAPITAL PIS, UM, AND THEY REALLY FALL INTO THREE MAIN CATEGORIES.
SO THERE'S A PAY AS YOU GO PI, AND THAT'S A NON BONDED PI.
AND SO THAT'S TIED TO A SPECIFIC REIMBURSEMENT AGREEMENT, UM, WITH THE DEVELOPER WHERE AS THE, UH, ANNUAL INSTALLMENT IS COLLECTED EACH YEAR, IT GETS DISPERSED BACK TO THE DEVELOPER, UM, ONLY AFTER THE DEVELOPER HAS PROVEN UP ALL OF THEIR COSTS.
SO THEY, THEY DON'T JUST GET, UH, FREE MONEY, THEY HAVE TO PROVE UP THAT THEY'VE ACTUALLY INCURRED THESE PUBLIC INFRASTRUCTURE COSTS, UM, AS LAID OUT IN THE GOVERNING DOCUMENTS FOR THE PI.
UM, BUT ESSENTIALLY EVERY YEAR THE DEVELOPER WOULD GET A REIMBURSEMENT FOR THAT PUBLIC INFRASTRUCTURE.
THE NEXT STRUCTURE IS A REIMBURSEMENT BOND PI.
SO THIS ONE ESSENTIALLY STARTS OUT AS A PAY AS YOU GO.
THERE'S NO BOND ISSUANCE, UM, FOR THE TWO TO THREE YEARS WHERE THE DEVELOPER'S PUTTING IN THE INFRASTRUCTURE, UM, THEY KEEP IT AS A PAY AS YOU GO PIT.
AND THEN ONCE THAT INFRASTRUCTURE IS ACTUALLY COMPLETE, THEY'LL REQUEST A BOND ISSUANCE SO THAT THEY CAN GET, UH, ESSENTIALLY REIMBURSED FOR ALL OF THEIR PUBLIC INFRASTRUCTURE COSTS AT ONCE.
THE REASON WHY THEY DO THIS IS BECAUSE IT'S A MUCH LESS RISKY DEAL, UM, OR MU MUCH LESS RISKY TRANSACTION.
AND SO THEY CAN GET BETTER INTEREST RATES, UM, IN THE MARKETPLACE.
[00:35:03]
AND SO ESSENTIALLY WHAT THAT MEANS, THE DEVELOPERS COMING IN, UM, THEY PUT IN ALL THE INFRASTRUCTURE SINCE THAT'S ACTUALLY COMPLETED, THEY HAVE FINISHED LOTS.SO THE DEAL TO THE WIDER BOND MARKETPLACE, THEY SEE IT AS MUCH, MUCH LESS RISKY 'CAUSE THE DEVELOPER'S ALREADY DONE THEIR PART.
UM, THE THIRD TYPE OF, UH, PIT, A CAPITAL PIT IS A CONSTRUCTION BOND PIT.
THIS IS, UH, THE RISKIEST OF THE THREE, AND THAT'S WHERE THE DEVELOPERS REQUESTING BOND ISSUANCE UPFRONT, AND THEY'RE GONNA TAKE THOSE PROCEEDS AND BE USING THEM TO FUND THE CONSTRUCTION COSTS AS THEY OCCUR.
UH, I SAY THIS IS THE, THE RISKIEST OF THE THREE, AND THAT IS TRUE, BUT THIS IS STILL A VERY COMMON PROCEDURE.
LOTS OF CITIES DO IT AND THERE'S LOTS OF SAFEGUARDS PUT IN PLACE.
ALL IT REALLY MEANS, AS FAR AS THE RISKIEST IS THAT IT'S GONNA HAVE THE HIGHEST INTEREST RATE OF THE THREE.
AND SO THIS IS ALSO ONE OF THE ITEMS THAT WE'D BRING BACK TO COUNCIL AS WE'RE EVALUATING THIS TRANSACTION, IS KIND OF WHICH OF THESE THREE STRUCTURES, UH, THIS PARTICULAR DEAL FALLS INTO.
AND YOU HAVE PERCENTAGE RATE FOR EACH ONE.
IT DEPENDS ON THE MARKET THERE.
AND IT'S NOT JUST THE STRUCTURES NOT THE ONLY COMPONENT.
UM, PART OF IT DEPENDS ON THE QUALITY OF THE DEVELOPER, UM, THE CITY'S HISTORY WITH ITS OWN DEBT ISSUANCES.
UM, AND SO THAT'S INFORMATION AGAIN, THAT WE WOULD BRING BACK, UM, TO CITY COUNCIL, BUT IT CAN JUST VARY PROJECT TO PROJECT.
COUNCILOR MCCURDY IS, IS IT COMMON FOR, UH, PROJECTS TO HAVE KIND OF A BLEND OF THESE THREE PS WHERE THEY CAN GET A CERTAIN AMOUNT OF MONEY UP FRONT? SOME OF IT IS MAYBE PAY AS THEY GO, AND THEN SOME OF IT IS REIMBURSED ONCE THE INFRASTRUCTURE IS COMPLETED? UM, THERE ARE A COUPLE OF TIMES WHERE YOU CAN HAVE A COMBINATION OF THEM.
UM, SO IN, IN A CASE LIKE THAT, YOU WOULD HAVE A, UH, BONDED PORTION OF YOUR ASSESSMENT, BUT THEN YOU MIGHT HAVE AN ADDITIONAL ASSESSMENT ON ON TOP OF THAT THAT'S CALLED A REIMBURSEMENT OBLIGATION.
AND THAT WOULD FUNCTION LIKE A PAY AS YOU GO PI, UM, CASES LIKE THAT HAVE EXTRAORDINARY PUBLIC INFRASTRUCTURE COSTS ASSOCIATED WITH IT.
UM, AND SO IT DOES HAPPEN ON OCCASION.
UM, TO ANSWER YOUR QUESTION, AND THAT'S SOMETHING THAT WE WOULD LOOK AT IN THE TRANSACTION FOR THIS ONE AS WELL, IF IT MERITS IT IN THIS CASE.
DOES THAT ANSWER YOUR QUESTION? YES.
SO CITY OBLIGATIONS FOR CAPITAL PIS, THERE'S TWO MAIN THINGS, UM, THAT CITY, THE CITY IS REALLY DOING.
UM, WHEN IT COMES TO THE ONGOING ADMINISTRATION FOR A CAPITAL PI.
THE FIRST IS IT'S Y'ALL'S INSPECTORS THAT WILL ACTUALLY BE INSPECTING THE ONSITE PUBLIC INFRASTRUCTURE AND VERIFYING THAT THE DEVELOPER HAS COMPLETED WHAT THEY'VE SAID THAT THEY'RE GONNA COMPLETE.
SO Y'ALL ARE THE ONES WHO ARE ACTUALLY GOING IN AND VERIFYING THESE WATER LINES ARE BUILT, THESE ROADS ARE BUILT, THEY'RE COMPLETED, THEY MEET OUR STANDARDS, AND, UM, ULTIMATELY THEY'RE READY TO BE DEDICATED TO THE CITY.
THE OTHER THING THAT YOU DO IS YOU HIRE AND OVERSEE A PID, UH, ADMINISTRATOR.
SO IN THIS CASE IT WOULD BE US.
UM, AND THEN IN CONJUNCTION WITH US, THERE'S LOTS OF DIFFERENT THINGS THAT YOU DO.
TYPICALLY, WE TAKE THE HEAVY LOAD ON THAT, AND SO, UH, WE PRESENT OUR FINDINGS AND BRING IT BACK TO CITY STAFF, UH, WHO THEN CAN SIGN OFF ON IT OR ASK ADDITIONAL QUESTIONS.
AND WE WORK VERY CLOSELY WITH CITY STAFFS ON THESE ITEMS. UM, ONE OF THE MOST PROLIFIC ONES IS GONNA BE, UH, REVIEWING DRAW REQUESTS FROM THE DEVELOPERS.
SO I SAID EARLIER THEY HA THEY'RE REQUIRED TO PROVE UP ALL OF THEIR PUBLIC INFRASTRUCTURE COSTS BEFORE THEY GET REIMBURSED.
WE HAVE A, A PRETTY RIGOROUS PROCESS THAT WE WORK THROUGH WITH THAT.
AND SO, UM, WHAT WE'RE REALLY DOING IS VERIFYING THAT ALL OF THE PUBLIC INFRASTRUCTURE THAT THEY'RE PRESENTING TO US, UM, VIA INVOICES, ALL BILLS, PAID AFFIDAVITS, THAT IT ALL COMPLIES WITH A, THE STATUTE, UM, WHICH SETS LIMITS OF WHAT THE P CAN FUND.
AND THEN B, THE SERVICE AND ASSESSMENT PLAN.
THAT SERVICE AND ASSESSMENT PLAN IS SOMETHING THAT WE PREPARE, UH, AGAIN, IN ASSOCIATION WITH CITY STAFF AND THE CITY CONSULTING TEAM.
UM, BUT THAT'S WHAT LAYS OUT THE ANTICIPATED REVENUE STREAMS FROM THE PI, UM, THE ASSESSMENTS AS WELL AS THE PROJECT COSTS.
SO THAT LAYS OUT THE SPECIFIC ITEMS, UM, THAT THE PI WILL FUND AND ADD ATTACHED TO THAT AS AN APPENDIX WILL BE, UH, AN ENGINEER'S REPORT.
SO THE DEVELOPER WILL SUBMIT A CERTIFIED AND STAMPED ENGINEER'S REPORT OUTLINING ALL OF THE PUBLIC INFRASTRUCTURE COSTS THAT THEY'RE SEEKING REIMBURSEMENT FOR.
AND SO AS PART OF THE DRAW REVIEW PROCESS, WE'RE REVIEWING THAT TO MAKE SURE THAT THE ACTUAL INVOICES THEY'RE SUBMITTING TO US TIE BACK TO THAT ENGINEER'S REPORT.
UM, IN ADDITION TO THAT, WE MAINTAIN A DATABASE OF ALL THE PROPERTIES WITHIN THE PIT, INCLUDING THE ANNUAL INSTALLMENT, UM, THAT IS GONNA BE OWED FROM THAT PROPERTY EACH YEAR.
AND THE OUTSTANDING ASSESSMENT FOR EACH INDIVIDUAL PROPERTY OWNER SO THAT RESIDENTS CAN LOOK UP THEIR INFORMATION AND FIND, UM, THEIR DISCLOSURE FORMS, THEY CAN FIND THE ANNUAL INSTALLMENTS THAT THEY'RE EXPECTED TO PAY.
THERE'S LOTS OF OTHER THINGS THAT WE DO ON HERE.
UM, THE LAST ONE I'LL MENTION AND THEN I'LL MOVE ON,
[00:40:01]
IS WE ALSO ARE THE ONES PREPARING THE ASSESSMENT ROLE EACH YEAR.SO THE STATUTE REQUIRES THAT EVERY YEAR THE ASSESSMENT ROLE BE UPDATED.
SO THAT'S THE ACTUAL DOCUMENT THAT GETS SENT TO THE COUNTY, UM, TO GET IT PUT ON THE COUNTY'S TAX ROLL AND SENT OUT ON THE PROPERTY TAX BILLS.
UM, AND SO WE PREPARE THAT IT'S AN EXHIBIT TO THE SERVICE AND ASSESSMENT PLAN, UM, BUT WE PREPARE THAT AND WE COORDINATE WITH THE COUNTIES TO GET THAT SENT OUT.
UM, SO I'VE MENTIONED A FEW OF THESE DIFFERENT DOCUMENTS.
THE MOST PROLIFIC ONE FOR YOU GUYS IS GONNA BE THE SERVICE AND ASSESSMENT PLAN, WHICH AS I SAID, THAT'S LAYING OUT ALL OF THE INFORMATION RELATED TO THE PI, UH, AND LAYING OUT HOW IT'S GOING TO WORK AND FUNCTION.
IN ADDITION TO THAT, THE OTHER KEY ONE I WOULD, UH, THAT SHOULD HAVE SPECIAL ATTENTION PAID TO IT WOULD BE THE DEVELOPMENT AGREEMENT.
'CAUSE THAT'S WHERE IT'S GONNA REALLY LAY OUT THE CONSTRAINTS OF WHAT THE CITY'S WILLING TO DO WITH THIS PI, LIKE THAT TAX STACK, UM, OR THE VALUE TO LEAN.
SO THERE'S DIFFERENT METRICS THAT ARE PUT IN PLACE THAT'LL CONSTRAIN AND GOVERN THE DEAL FOR THE LIFE OF THE PI, WHETHER YOU'RE LEVYING ON PHASE ONE, PHASE TWO, OR PHASE FIVE.
UM, THESE OTHER DOCUMENTS ARE, ARE PART, UH, ARE MOST OF 'EM ARE PART OF THE BOND PROCESS.
SO IF IT IS A BONDED TRANSACTION, THEN THERE'S LOTS OF OTHER DOCUMENTS THAT GO WITH THAT, UM, AS ARE REQUIRED BY THE VARIOUS LAWS GOVERNING THE BONDS.
SO ANY QUESTIONS ON CAPITAL PIS? ANYTHING I DIDN'T COVER? UM, I MEAN I, I, WE DIDN'T REALLY PREFERENCE, I GUESS, YOU KNOW, FOR EVERYBODY.
UH, I DIDN'T KNOW WHAT WAS IN THE PRESENTATION, BUT SURE.
UM, ARE THERE ANY OTHER QUESTIONS FROM COUNSEL OR, WELL, I MEAN, I, I GUESS I QUESTION, COMMENT.
UM, YOU KNOW, I GUESS MY QUESTION IS AROUND, UH, I, I KNOW THE DEVELOPER IS, IS ASKING US TO, TO CONSIDER A, DOING A P AS A, AS A MEANS OF PROVIDING INFRASTRUCTURE.
AND, AND I KNOW THAT, UH, AS A COUNCIL, WE'VE KIND OF LOOKED AT, YOU KNOW, THE DEVELOPMENTS THAT WE GET KIND OF IN THE SOUTHERN SECTOR, UH, OF DALLAS VERSUS THE TYPES OF DEVELOPMENTS THAT, UH, OCCUR IN THE NORTHERN SECTOR OF, OF DALLAS.
AND I REALLY WANT TO UNDERSTAND IS, SO WHAT ARE THEY DOING DIFFERENTLY IN THE NORTHERN SECTOR? ARE THEY DOING SOMETHING DIFFERENTLY THAT, THAT WE'RE NOT DOING DOWN HERE THAT'S ALLOWING THEM TO GET DEVELOPMENTS? UM, YOU KNOW, SIMILAR TO THE BALCONES DEVELOPMENT, UH, WHICH IS KIND OF THE FIRST REALLY PREMIER TYPE DEVELOPMENT THAT WE'VE HAD WITH THE AMOUNT AMENITIES AND EVERYTHING ELSE, UM, IT, IT, ARE THERE THINGS OTHER THAN JUST PIS THAT THEY'RE DOING THAT'S A, THAT'S ATTRACTING THESE TYPES OF DEVELOPMENTS AND, UH, YOU KNOW, WHAT CAN WE DO? SO, UM, I'M BIASED BECAUSE THE PROJECTS THAT I WORK ON ARE ALL GONNA BE PI RELATED.
AND SO WE, BUT, UH, WE DO SEE LOTS OF PROJECTS, UH, PI PROJECTS ALL OVER THE METROPLEX.
UM, WE'VE WORKED ON PROJECTS IN PLANO, WE'VE WORKED ON PROJECTS IN MESQUITE, LEWISVILLE, UM, PILOT POINT.
THERE'S LOTS OF DIFFERENT CITIES ALL ACROSS THE STATE THAT WE'VE WORKED FOR.
UM, AND PIDS ARE A TOOL THAT ARE COMMONLY USED.
UM, AND THE MAIN REASON FOR THAT IS BECAUSE IN THE DEVELOPMENT AGREEMENT THAT YOU'RE GONNA AGREE TO, ESSENTIALLY THAT'S THIS'S A BIG INCENTIVE.
'CAUSE IT'S A, AND ONE WAY OF THINKING ABOUT IT IS IT'S A BIG POT OF MONEY THAT THE CITY'S GONNA PROVIDE TO THE DEVELOPER.
UM, SO ONE OF THE THINGS WE URGED CITY COUNCILS TO THINK ABOUT IS WHAT ARE YOU GETTING IN EXCHANGE FOR THE PIT? UM, SO YOU MENTIONED HIGH QUALITY AMENITIES, UM, A HIGHER, A HIGHER STANDARD DEVELOPMENT STANDARD.
UM, ANNEXATION A COMMON ELEMENT.
UM, BUT TO GET THE HIGH QUALITY STANDARD THAT YOU'RE SEEKING, THAT YOU'VE SEEN IN OTHER CITIES ACROSS THE METROPLEX, THAT REALLY WOULD NEED TO BE IDENTIFIED, UM, IN THE DEVELOPMENT AGREEMENT, AND THEN THE PI WOULD BE THE TOOL TO HELP, UH, ACHIEVE THAT.
SO IT CAN, AS I WAS MENTIONING MR. SIMS EARLIER, UM, THAT CAN MAKE UP THE FINANCIAL DIFFERENCE SOMETIMES.
UM, THE ONLY OTHER TOOL THAT I CAN REALLY COMMENT ON WOULD BE, UH, TAX INCREMENT REINVESTMENT ZONES THAT, UH, WHICH ARE A WHOLE NOTHER TOOL.
THEY CAN BE USED IN COORDINATION WITH PIDS AT TIMES WHEN THERE'S, UH, EXTREME, EXTREMELY EXCESSIVE COSTS.
UM, BUT IT DEPENDS ON THERAN, IT, IT DEPENDS ON THE TRANSACTION, BUT THOSE ARE REALLY THE, THE TWO TOOLS THAT I SEE, UM, COMMONLY USED IN THE METROPLEX TO ACHIEVE THOSE HIGH QUALITY STANDARDS, HIGH QUALITY AMENITIES, UH, THAT CITIES ARE REALLY LOOKING FOR.
DOES THAT HELP ANSWER YOUR QUESTION? WELL, UH, YOU KNOW, THANK YOU FOR YOUR PRESENTATION.
UM, COUNCIL, WE ARE REALLY EMBARKING ON SOMETHING NEW.
UM, WE HAVE, UM, SEEN A TREND THAT SOME OF OUR NEWER DEVELOPMENTS, UH, WANTS US TO ACTUALLY PROPOSE THIS TOOL.
UH, THIS IS ACTUALLY NEW TO US BECAUSE WE ARE
[00:45:01]
FAMILIAR WITH THE MAINTENANCE PIS, UH, AND I USED TO CALL IT DEVELOPMENT PIS, BUT IT'S, I GUESS IT'S CALLED CAPITAL PIS.UM, SO THIS IS SOMETHING NEW TO US.
SO ESSENTIALLY, UM, P THREE IS A CONSULTANT AND, UH, HE'S ACTUALLY GONNA TAKE A LOOK AT THE DEVELOPMENT, LOOK AT THE TERRITORY, I GUESS I'LL CALL IT MM-HMM.
AND, UH, HE'S GONNA COME BACK TO COUNCIL AND MAKE HIS RECOMMENDATION.
UH, HIS RECOMMENDATION I GUESS WOULD COME OUT OF THESE THREE, PAY AS YOU GO, UH, REIMBURSEMENT BOND OR CONSTRUCTION BOTTOM P UH, COUNSEL.
WE WILL HAVE, I GUESS, UM, SOME INPUT ABOUT WHAT OUR PREFERENCE WOULD BE.
UH, WE HAVE ALREADY SEEN SOME CONCEPTUAL PLANS FROM THE DEVELOPER.
UH, AND LET ME SAY, JUST FOR FULL TRANSPARENCY, UH, THE DEVELOPER DIDN'T HIRE, NO.
SO YOU ARE INDEPENDENT, YOU KNOW? YES, SIR.
CONSULTANT, AND, UH, HE'S GONNA BE ABLE TO COME BACK AND GIVE US SOME FEEDBACK.
SO, SO THIS IS SOMETHING NEW COUNSEL.
UH, I KNOW WE HAD, UM, I GUESS, UM, UH, DION SANDERS PROPERTY.
I THINK HE SOLD IT NOW, BUT THAT WAS ONE THAT WE WAS LOOKING TO DO THAT POTENTIAL, UH, DEVELOPMENT PERIOD.
AND OF COURSE, UH, CAPITAL PERIOD.
AND OF COURSE, UM, THIS UNI RANCH, UH, PERIOD.
SO, SO THIS IS SOMETHING NEW COUNSEL, AND, UH, THIS WAS A BRIEFING FOR US TO BE ABLE TO, UH, TALK ABOUT, UM, WHAT WE COULD BE DOING NEW IN, IN, IN, UH, IN CEDAR HILL.
SO THANK YOU FOR YOUR PRESENTATION.
THERE ARE A FEW MORE SLIDES THAT I CAN GO INTO.
UH, MOST SLIDE, MOST PRESENTATIONS ENDS ON A QUESTION
UM, AND I JUST, I DO JUST WANT TO ADD, SO OUR COMPANY P THREE WORKS, WE WERE FOUNDED BY A FORMER CITY MANAGER.
UM, TRENT PETTY IS ONE OF THE, UH, CO-FOUNDERS OF THE COMPANY, AND HE SERVED AS CITY MANAGER OF GRAPEVINE AND CITY MANAGER OR TOWN MANAGER OF WESTLAKE, UM, FOR MANY, MANY YEARS BEFORE HELPING TO CREATE P THREE WORKS.
WE, WE FEEL THAT YOU CAN ONLY REPRESENT OUR CLIENTS IF WE, IF WE HOLD FAST TO THAT.
SO THAT'S ONE OF OUR PROMINENT CORE VALUES AS A COMPANY, IS TO ONLY SERVE PUBLIC ENTITIES.
UM, A LITTLE BIT ON OUR CONTRACT, UM, AS I MENTIONED EARLIER, IT'S FULLY FUNDED THROUGH THAT DEVELOPER ESCROW, UM, OR ANNUAL COLLECTION COSTS.
AND SO, AGAIN, NO IMPACT TO THE CITY'S GENERAL FUND.
UM, THE FIRST THING THAT WE'RE GONNA DO IS WE'RE GONNA WORK WITH CITY STAFF TO EVEL EVALUATE THE DEVELOPER'S REQUESTS AND DEVELOPMENT AGREEMENT.
UM, THAT MEANS REVIEWING MAPS, REVIEWING ENGINEERS REPORTS, REVIEWING MODELS, UM, AND PROVIDING SOME FEEDBACK TO CITY STAFF ABOUT, UM, MAYBE SOME OF THE PITFALLS OR SOME OF THE ITEMS THAT WE'VE SEEN, UH, OTHER CITIES SUCCESSFULLY DO THAT WE, WE MAY WANNA BRING IN HERE.
UM, ULTIMATELY THAT'LL RESULT, UH, ASSUMING THAT COUNCIL WANTS TO MOVE FORWARD, THAT WOULD RESULT IN A, THE PREPARATION OF THE SERVICE AND ASSESSMENT PLAN THAT WOULD LAY OUT THE ASSESSMENT THAT IS GETTING LEVIED ON THE PROPERTY, UM, AND THE ANTICIPATED PLAN TO PAY OFF THOSE ANNUAL INSTALLMENTS EACH YEAR.
UH, FROM THERE, WE WE'RE THE ONES WHO ARE INTERFACING WITH THE COUNTY TO HELP PREPARE THOSE TAX ROLL, AS I MENTIONED.
AND THEN WE ALSO WORK WITH CITY STAFF, UM, ON LOTS OF THE, UH, DILIGENCE REPORTS THAT ARE REQUIRED FOR PIDS.
UM, SOME OF THOSE INCLUDE ANNUAL ISSUE, AN ANNUAL ISSUER REPORTS, QUARTERLY REPORTS, COLLECTION REPORTS.
AND THEN AS I TALKED ABOUT EARLIER, THE DRAW REQUEST REVIEW, UM, VISUALLY THAT KIND OF LOOKS LIKE THIS.
SO OBVIOUSLY THERE'S CITY COUNCIL STAFF IS THE MOST IMPORTANT ONE, FRONT AND CENTER.
UM, AND THEN WE'RE PIT ADMINISTRATOR RIGHT UNDERNEATH IT.
UM, THIS KIND OF LAY LAYS OUT, UM, A SPAGHETTI BOWL.
IT'S KIND OF HARD TO READ IN SOME WAYS, BUT I, I HOPE WHAT YOU TAKE AWAY FROM IT IS THAT WE'RE INTERFACING WITH CITY COUNCIL, UH, OR EXCUSE ME, WITH CITY STAFF AND THE CITY AND REPRESENTING YOU, UM, AS WE, AS WE DISCUSS THINGS WITH THE UNDERWRITERS, WITH THE TRUSTEES, WITH THE DEVELOPER AND THEIR TEAM, UM, AND WITH THE COUNTY, UH, AMONG THE OTHER CONSULTANTS THAT THE CITY HAS.
AND SO WE'RE REPRESENTING YOU GUYS AND TRYING TO HOLD FAST TO THE INTEREST THAT CITY COUNCIL LAYS OUT AND THE OBJECTIVES AND PRIORITIES THAT YOU LAY OUT FOR THE CITY.
UM, SO A FEW OF THE NEXT STEPS THAT YOU WOULD SEE WOULD BE THE, UM, ASSUMING YOU WANNA MOVE FORWARD WITH US, WOULD BE THE APPROVAL OF OUR CONTRACT TONIGHT.
AND THEN WE WOULD WORK WITH CITY STAFF TO KIND OF EVALUATE THE POTENTIAL PIT AND THE DEVELOPER'S REQUEST.
WE PRESENT THOSE FINDINGS TO CITY STAFF AND TO THE CITY COUNCIL.
AND THEN BASED ON THE DIRECTION THAT YOU PROVIDE, WE WOULD WORK WITH, UH, THE VARIOUS CITY CONSULTING, UH, GROUPS, BOND COUNCIL, FINANCIAL ADVISOR, AND, AND THE LIKE, UM, TO HELP WORK ON THE DEVELOPMENT AGREEMENT.
AND THEN ULTIMATELY THAT SERVICE AND ASSESSMENT PLAN.
UM, ONCE THAT DEVELOPMENT AGREEMENT GETS APPROVED, THAT'S REALLY WHERE WE CAN START WORK ON THE ACTUAL PID FORMATION ITEMS AND TIMELINE.
UM, THAT'S TYPICALLY GONNA BE A SIX MONTH PROCESS, IF NOT MORE.
UM, THERE'S A MINIMUM OF FOUR DIFFERENT COUNCIL MEETINGS THAT ARE REQUIRED TO GET A PI CREATED.
UM, AND THERE'S ALSO DIFFERENT TIMEFRAMES THAT ARE REQUIRED BY THE STATUTE.
SO THE, THE TEXAS LEGISLATURE WANTS TO BE VERY, VERY, VERY SURE THAT PROPERTY OWNERS DO NOT HAVE A LEVY OF ASSESSMENTS AGAINST THEM, UH, WITHOUT THEIR CONSENT.
AND SO THERE'S LOTS OF DIFFERENT MEETINGS, UM, PUBLIC CITY COUNCIL MEETINGS AND PUBLIC HEARINGS THAT ARE REQUIRED IN ORDER TO CREATE A PI.
UH, AND SO THE, THOSE ARE LISTED OUT HERE.
[00:50:01]
UM, ONCE A DEVELOPMENT AGREEMENT IS COMPLETED, THAT'S WHERE, UH, WE CAN START WITH THAT P PI FORMATION PROCESS.SO GETTING THE KIT, THE PIT ITSELF CREATED, AND THEN SEPARATE FROM THAT IS GONNA BE THE LEVY OF ASSESSMENTS.
SOMETIMES THERE CAN BE SOME TIME IN BETWEEN THAT.
SOMETIMES DEVELOPERS LIKE TO GET THEIR PI CREATED, THEN THEY LIKE TO GO WORK ON THEIR INFRASTRUCTURE FOR SOME TIME, AND THEN THEY COME BACK A LITTLE BIT LATER AND THEY SAY, HEY, WE'RE READY.
WE HAVE THE DEVELOPMENT AGREEMENT IN PLACE.
WE WANNA LEVY ASSESSMENTS, UH, IN KEEPING WITH THE TERMS OF THE DEVELOPMENT AGREEMENT.
SO THERE CAN BE A GAP, UH, IN TIME HERE IN BETWEEN THESE DIFFERENT SETS OF MEETINGS.
UM, BUT THIS IS KIND OF WHAT YOU WOULD EXPECT TO SEE IF IT IS A BONDED TRANSACTION WITH CONSTRUCTION BONDS, UH, GOING UP FRONT.
THEN THERE'S GONNA BE ADDITIONAL ITEMS, UH, AS WELL.
UM, BUT WITH THAT, THAT'S THE LAST SLIDE, SO IF YOU HAVE ANY OTHER QUESTIONS, I'M HAPPY TO ANSWER THEM.
UH, ANY ADDITIONAL QUESTIONS FROM COUNCIL? UH, COUNCILMAN GLOVER? JUST A, A QUALIFYING STATEMENT, JUST THIS IS VERY COMPLEX AND A GREAT DEAL OF INFORMATION AND I WOULD WANT EVERYONE TO KNOW THAT THIS IS FOCUSING ON NEW CONSTRUCTION AND NEW PROJECTS.
THIS IS NOT ANY TYPE OF ASSESSMENT ON EXISTING BIDS AND NOT GOING TO IMPACT FINANCIALLY EXISTING HOMEOWNERS WHO ALREADY HAVE PIS OR DON'T HAVE BIDS.
ALRIGHT, WELL, KIRK, I THINK, UM, I THINK THAT'S, UH, NO MORE QUESTIONS.
WE, UH, YOU WILL, THIS, UH, AGENDA ITEM WILL COME UP ON THE COUNCIL AGENDA, COUNCIL FOR YOUR CONSIDERATION.
ALRIGHT, SO WITH THAT, UM, NEXT ITEM ON THE, UH, BRIEFING SESSION, WE'LL BE A PRESENTATION REGARDING UPDATES TO BUILDING PERMIT FEES.
WE WOULD PROBABLY REQUEST THAT IS OKAY WITH ME, SIR.
SO COUNSEL, WE'LL GO AHEAD AND TABLE THAT ITEM, UH, FOR, UH, FUTURE, UH, MAYBE A BRIEFING MEETING.
AND, UH, THE NEXT ITEM ON THE AGENDA IS TO ADJOURN.
I DO HAVE A MOTION TO ADJOURN.
DO I HAVE A SECOND? SECOND, SECOND.
MOTION COUNCIL, I HAVE, UH, ALL IN FAVOR FOR RAISE YOUR RIGHT HAND.
COUNSEL, WE'LL RECONVENE FOR OUR REGULAR CITY COUNCIL MEETING AT 7:00 PM.