HomeMy WebLinkAbout15-1477 10-13-2015 RESOLUTION NO. 15-1477
A RESOLUTION OF THE CITY OF EULESS, TEXAS DETERMINING THE
COSTS OF CERTAIN AUTHORIZED IMPROVEMENTS TO BE
FINANCED BY THE EULESS-MIDTOWN PUBLIC IMPROVEMENT
DISTRICT; APPROVING A PRELIMINARY SERVICE PLAN AND
ASSESSMENT PLAN, INCLUDING A PROPOSED ASSESSMENT
ROLL; AND NOTICING A PUBLIC HEARING FOR JANUARY 26, 2016,
TO CONSIDER AN ORDINANCE LEVYING ASSESSMENTS ON
PROPERTY LOCATED WITHIN THE EULESS-MIDTOWN PUBLIC
IMPROVEMENT DISTRICT; DIRECTING THE FILING OF THE
PROPOSED ASSESSMENT ROLL WITH THE CITY SECRETARY TO
MAKE AVAILABLE FOR PUBLIC INSPECTION; DIRECTING CITY
STAFF TO PUBLISH AND MAIL NOTICE OF SAID PUBLIC HEARING;
AND RESOLVING OTHER MATTERS INCIDENT AND RELATED
THERETO.
WHEREAS, the Public Improvement District Assessment Act, Texas Local
Government Code, Chapter 372, as amended (the "Act") authorizes the governing body
(the "City Council") of the City of Euless, Texas (the "City"), to create a public improvement
district within the City; and
WHEREAS, on August 25, 2015 the City Council conducted a public hearing to
consider a petition received by the City on July 30, 2015 titled "Petition for the Creation
of a Public Improvement District Within the City of Euless, Texas, for the Euless Midtown
Public Improvement District" requesting the creation of a public improvement district; and
WHEREAS, on August 25, 2015, the City Council approved Resolution No. 15-
1471 (the "Authorization Resolution"), authorizing, establishing and creating the Euless
Midtown Public Improvement District (the "District"); and
WHEREAS, the City authorized the creation of the District and a reimbursement
amount not to exceed $16,582,160 for the District to finance certain public improvements
authorized by the Act for the benefit of the property within the District (the "Authorized
Improvements"); and
WHEREAS, the City Council and the City staff have been presented a "Euless
Midtown Public Improvement District Preliminary Service and Assessment Plan,"
including the proposed assessment roll, attached as Appendix E (the "Proposed
Assessment Roll") to the Preliminary Service and Assessment Plan, (collectively, the
"Preliminary SAP"), a copy of which is attached hereto as Exhibit A and is incorporated
herein for all purposes; and
WHEREAS, the Preliminary SAP sets forth the estimated total costs of certain
Authorized Improvements to be financed by the District for the development and the
Proposed Assessment Roll states the assessments proposed to be levied against each
parcel of land in the District as determined by the method of assessment chosen by the
City; and
WHEREAS, the Act requires that the Proposed Assessment Roll be filed with the
City Secretary of the City (the "City Secretary") and be subject to public inspection; and
WHEREAS, the Act requires that a public hearing (the "Assessment Hearing") be
called to consider proposed assessments and requires the City Council to hear and pass
on any objections to the proposed assessments at, or on the adjournment of, the
Assessment Hearing; and
WHEREAS, the Act requires that notice of the Assessment Hearing be mailed to
property owners liable for assessment and published in a newspaper of general
circulation in the City before the tenth (10th) day before the date of the Assessment
Hearing.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS AS FOLLOWS, THAT:
Section 1.
The recitals set forth above in this Resolution are true and correct and are hereby
adopted as findings of the City Council and are incorporated into the body of this
Resolution as if fully set forth herein.
Section 2.
The City Council does hereby accept the Preliminary SAP for the District, including
the Proposed Assessment Roll, a copy of which is attached hereto as Exhibit A and is
incorporated herein for all purposes. All capitalized terms not otherwise defined herein
shall have the meanings given to such terms in the Preliminary SAP.
Section 3.
The City Council hereby determines that the total costs of the Authorized
Improvements (as defined in the Preliminary SAP) to be financed by the District are as
set forth in Table IV-B of the Preliminary SAP, which costs include the payment of
expenses incurred in the administration of the District.
Section 4.
The City Council's final determination and approval of the costs of the Authorized
Improvements, or any portion thereof, shall be subject to and contingent upon City
Council approval of a final Service and Assessment Plan which will include final
Assessment Roll, after the properly noticed and held Assessment Hearing.
Resolution No. 15-1577, Page 2 of 45
Section 5.
The Proposed Assessment Roll states the assessment proposed to be levied
against each parcel of land in the District as determined by the method of assessment
chosen by the City in the Authorization Resolution and as more fully described in the
Preliminary SAP.
Section 6.
The City Council hereby authorizes and directs the filing of the Proposed
Assessment Roll with the City Secretary and the same shall be available for public
inspection.
Section 7.
The City Council hereby authorizes, and calls a public hearing (the Assessment
Hearing as defined above) to be held on January 26, 2016 at 7:00 p.m. in the Council
Chambers, City Hall, at 201 N. Ector Drive Euless, Texas 76039, at which the City Council
shall, among other actions, hear and pass on any objections to the proposed
assessments; and, upon the adjournment of the Assessment Hearing, the City Council
will consider an ordinance levying the assessments as special assessments on property
within the District (which ordinance shall specify the method of payment of the
assessments).
Section 8.
The City Council hereby authorizes and directs the City Secretary to publish notice
of the Assessment Hearing to be held on January 26, 2016, in substantially the form
attached hereto as Exhibit B and incorporated herein for all purposes, in the Fort Worth
Star-Telegram, a newspaper of general circulation in the City before the tenth (10th) day
before January 26, 2016 as required by Section 372.016(b) of the Act.
Section 9.
When the Proposed Assessment Roll is filed with the City Secretary, the City
Council hereby authorizes and directs the City Secretary to mail to owners of property
liable for assessment a notice of the Assessment Hearing to be held on January 26, 2016,
in substantially the form attached hereto as Exhibit B and incorporated herein for all
purposes before the tenth (10th) day before January 26, 2016 as required by Section
372.016(c) of the Act.
Section 10.
City staff is authorized and directed to take such other actions as are required
(including, but not limited to, notice of the public hearing as required by the Texas Open
Resolution No. 15-1577, Page 3 of 45
Meetings Act) to place the public hearing on the agenda for the January 26, 2016 meeting
of the City Council.
Section 11.
This Resolution shall become effective from and after its date of passage in
accordance with the Charter of the City of Euless.
APPROVED at a regular meeting of the Euless City Council on October 13, 2015
by a vote of 7 ayes, 0 nays, and 0 abstentions.
APPROVED: ATTEST:
� Jv /AL. \, err'
L. a artin, Mayor im .utter, T' C, City Secretary
Resolution No. 15-1577, Page 4 of 45
EXHIBIT A
PRELIMINARY SERVICE AND ASSESSMENT PLAN
Resolution No. 15-1577,Page 5 of 45
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EULESS MIDTOWN
PUBLIC IMPROVEMENT DISTRICT NO. 1
SERVICE AND ASSESSMENT PLAN
AUGUST 21,2015
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Resolution No. 15-1577,Page 6 of 45
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EULESS MIDTOWN
PUBLIC IMPROVEMENT DISTRICT No. 1
SERVICE AND ASSESSMENT PLAN
Table of Contents
Section I Plan Description and Defined Terms 1
Section II Property Included in the PID 6
Section III Description of Authorized Improvements 7
Section IV Service Plan 10
Section V Assessment Plan 13
Section VI Terms of the Assessments 18
Section VII Assessment Roll 22
Section VIII Miscellaneous Provisions 23
List of Appendix
Appendix A The PID Map
Appendix B Estimated Costs of the Authorized Improvements
Appendix C Diagrams of the Authorized Improvements
Appendix D Land Use Class and Equivalent Units
Appendix E Assessment Roll
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Section I
PLAN DESCRIPTION AND DEFINED TERMS
A. Introduction
On 8-2.5-2015, the City Council of Euless, Texas (the "City") passed and approved Resolution
No.15-1471 approving and authorizing the creation of the Euless Midtown Public Improvement
District No. 1 ("PID") to finance the costs of certain public improvements for the benefit of
property in the PID, all of which is located within the corporate limits of the City. This Service
and Assessment Plan addresses the improvements to be provided for the PID.
Chapter 372 of the Texas Local Government Code, the "Public Improvement District
Assessment Act" (as amended, the "PID Act"), governs the creation and operation of public
improvement districts within the State of Texas. This Service and Assessment Plan has been
prepared pursuant to the PID Act and specifically Sections 372.013, 372.014, 372.015 and
372.016, which address the requirements of a service and assessment plan and the assessment
roll. According to Section 372.013 of the PID Act,a service plan"must cover a period of at least
five years and must also define the annual indebtedness and the projected costs for
improvements. The plan shall be reviewed and updated annually for the purpose of determining
the annual budget for improvements."The service plan is described in Section IV of this Service
and Assessment Plan.
Section 372.014 of the PID Act states that "an assessment plan must be included in the annual
service plan." The assessment plan is described in Section V of this Service and Assessment
Plan.
Section 372.015 of the PID Act states that "the governing body of the municipality or county
shall apportion the cost of an improvement to be assessed against property in an improvement
district." The method of assessing the PID Costs and apportionment of such costs to the property
in the PID is included in Section V of this Service and Assessment Plan.
Section 372.016 of the PID Act states that"after the total cost of an improvement is determined,
the governing body of the municipality or county shall prepare a proposed assessment roll. The
roll must state the assessment against each parcel of land in the district, as determined by the
method of assessment chosen by the municipality or county under this subchapter." The
Assessment Roll for the PID is included as Appendix E of this Service and Assessment Plan.
The Assessments as shown on the Assessment Roll are based on the method of assessment and
apportionment of costs described in Section V of this Service and Assessment Plan.
B. Definitions
Capitalized terms used herein shall have the meanings ascribed to them as follows:
"Administrator"means the employee or designee of the City who shall have the responsibilities
provided for herein or in any other agreement approved by the City Council.
"Annual Collection Costs" mean the following actual or budgeted costs, as applicable, related
to the annual collection costs of outstanding Assessments paid in installments, including the
costs or anticipated costs of: (i) issuing, refunding or refinancing CO, (ii) computing, levying,
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collecting and transmitting the Assessments (whether by the City, the Administrator or
otherwise), (iii) remitting the Assessments to the City, (iv) the City,the Administrator, a trustee
or funding agent and any other entities related to the PID and authorized by the City (including
legal counsel) in the discharge of their duties, (v) complying with arbitrage rebate requirements,
if any, (vi) complying with securities disclosure requirements, if any, and (vii) the City in any
way related to the collection of the Assessments in installments, including, without limitation,
the administration of the PID, maintaining the record of installments, payments and reallocations
and/or cancellations of Assessments,and the repayment of the CO, including, without limitation,
any associated legal expenses, the reasonable costs of other consultants and advisors and
contingencies and reserves for such costs as deemed appropriate by the City Council.
Assessments collected to pay Annual Collection Costs and not expended for actual Annual
Collection Costs shall be carried forward and applied to reduce Annual Collection Costs in
subsequent years to avoid the over-collection of Annual Collection Costs.
"Annual Installment" means, with respect to each Assessed Parcel, each annual payment the
Assessments as shown on the Assessment Roll attached as Appendix E and related to the CO and
the Authorized Improvements; which annual payment includes the 0.20% additional interest
collected on each annual payment of the Assessments for the prepayment reserve and the 0.30%
additional interest rate collected on each annual payment of the Assessments for the delinquency
reserve as defined and calculated in Section V of this Service and Assessment Plan or in any
Annual Service Plan Update.
"Annual Service Plan Update"has the meaning set forth in the first paragraph of Section IV of
this Service and Assessment Plan.
"Assessed Property" means the property that benefits from the Authorized Improvements to be
provided by the PID on which Assessments have been imposed as shown in the Assessment Roll,
as the Assessment Roll is updated each year by the Annual Service Plan Update. Assessed
Property includes Parcels within the PID other than Non-Benefited Property.
"Assessment" means the assessment levied against Parcels within the PID imposed pursuant to
the Assessment Ordinance and the provisions herein as shown on the Assessment Roll,subject to
reallocation upon the subdivision of such Parcel or reduction according to the provisions herein
and the PID Act. The Assessment for a Parcel consists of the Annual Installments to be collected
in all years and includes the Assessments including those collected to pay Annual Collection
Costs,and interest on the Assessments.
"Assessment Ordinance" means the ordinance approved by the City Council approving the
final Assessment Roll, and levying the Assessments.
"Assessment Revenues" mean the revenues actually received by or on behalf of the City from
the collection of Assessments.
"Assessment Roll" means the document included in this Service and Assessment Plan as
Appendix E, as updated, modified or amended from time to time in accordance with the
procedures set forth herein and in the PID Act.
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"Authorized Improvements" mean those public improvements described in Appendix B of this
Service and Assessment Plan and authorized by Section 372.003 of the PID Act, which are to be
undertaken by the PID for the benefit of property in the PID.
"Authorized Improvement Costs"mean the demonstrated,reasonable,allocable,and allowable
costs of constructing the Authorized Improvements as shown in Appendix B that are specified in
a Certification of Payment that has been reviewed and approved by the City. Actual Costs may
include: (a) the costs for the design, planning, financing, administration, management,
acquisition, installation, construction and/or implementation of any Authorized Improvement,
including general contractor construction management fees, if any, (b) the costs of preparing the
construction plans for any Authorized Improvement, (c) the fees paid for obtaining permits,
licenses, or other governmental approvals for any Authorized Improvement, (d) the costs for
external professional costs associated with an Authorized Improvement, such as engineering,
geotechnical, surveying, land planning, architectural landscapers, advertising, marketing and
research studies, appraisals, legal, accounting and similar professional services, (e) the costs of
all labor, bonds and materials, including equipment and fixtures, incurred by contractors,
builders and material men in connection with the acquisition, construction or implementation of
an Authorized Improvement, and(f)all related permitting,zoning,and public approval expenses,
architectural,engineering, legal and consulting fees, financing charges, taxes, governmental fees
and charges (including inspection fees, county permit fees, and development fees), insurance
premiums, miscellaneous expenses, and all advances and payments of Annual Collection Costs,
if any. Authorized Improvement Costs include general contractor's fees in an amount up to a
percentage equal to the percentage of work completed and accepted by the City or construction
management fees in an amount up to five percent of the eligible Authorized Improvement Costs
described in a Certification for Payment. The amounts expended on legal costs, taxes,
governmental fees, insurance premiums, permits, financing costs, and appraisals should be
excluded from the base upon which the general contractor and construction management fees are
calculated.
"Benefited Property" means property within the PID that receives a benefit from the
Authorized Improvements,which consists of all Parcels within the PID other than Non-Benefited
Property. Benefited Property is identified on the map of the PID included an Appendix A,with a
list of Parcels of Benefited Property included in Appendix E.
"Certification for Payment" means the certificate required under the CFA that is executed by
an engineer, construction manager or other person or entity acceptable to the City, as evidenced
by the signature of a City Representative (as defined in the CFA) specifying the amount of work
performed and the costs thereof, to substantiate the Authorized Improvement Cost of one or
more Authorized Improvements.
"Certificates of Obligation" or "CO" mean any bonds or certificates of obligation issued by
the City in one or more series issued to finance the Authorized Improvement Costs and secured
by Assessment Revenues.
"Construction and Funding Agreement" or"CFA" means an agreement or similar document
by and between the City and the Developer setting forth the terms and other provisions relating
to the construction of the Authorized Improvements, disbursement of project funds, use of
Assessment Revenues etc.as modified,amended,and/or supplemented from time to time.
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"City"means the City of Euless,Texas.
"City Council"means the duly elected governing body of the City.
"Delinquent Collection Costs" mean interest, penalties and expenses incurred or imposed with
respect to any delinquent Annual Installments of an Assessment in accordance with §372.018(b)
of the PID Act and the costs related to pursuing collection of a delinquent Assessment and
foreclosing the lien against the Assessed Property, including attorneys' fees.
"Developer" means CADG 901 Airport Freeway, L.L.C.
"Land Use Class" means a classification of property with similar characteristics regarding the
intended use of the property (e.g. single-family residential, townhome residential, multifamily
residential,retail etc.),as determined by the Administrator and confirmed by the City Council.
"Non-Benefited Property" means Parcels within the boundaries of the PID that accrue no
special benefit from the Authorized Improvements, including Owner Association Property,
Public Property and easements that create an exclusive use for a public utility provider. Property
identified as Non-Benefited Property at the time the Assessments (i) are imposed or (ii) are
reallocated pursuant to a subdivision of a Parcel is not assessed. Assessed Property converted to
Non-Benefited Property, if the Assessments may not be reallocated pursuant to the provisions
herein, remains subject to the Assessments and requires the Assessments to be prepaid as
provided for in Section VI. C.2.
"Owner Association Property" means property within the boundaries of the PID that is owned
by or irrevocably offered for dedication to, whether in fee simple or through an exclusive use
easement,a property owners' association.
"Parcel" or "Parcels" means a parcel or parcels within the PID identified by either a tax map
identification number assigned by the Tarrant Central Appraisal District for real property tax
purposes or by lot and block number in a final subdivision plat recorded in the real property
records of Tarrant County.
"PID Act" means Texas Local Government Code Chapter 372, Public Improvement District
Assessment Act, Subchapter A, Public Improvement Districts,as amended.
"PID"means Euless Midtown Public Improvement District No. 1.
"Prepayment Costs" mean interest and expenses to the date of prepayment, plus any additional
expenses related to the prepayment, reasonably expected to be incurred by or imposed upon the
City as a result of any prepayment of an Assessment.
"Public Property" means property within the boundaries of the PID that is owned by or
irrevocably offered for dedication to the federal government, the State of Texas, the City, a
school district or any other public agency, whether in fee simple or through an exclusive use
easement.
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"Service and Assessment Plan" means this Service and Assessment Plan prepared for the PID
pursuant to the PID Act.
"City"means the City of Euless, Texas.
"City Council"means the duly elected governing body of the City.
"TIRZ No. 4" means the Tax Increment Reinvestment Zone No.4,City of Euless,Texas.
"TIRZ Credit" means, for each Parcel, the prorated amount of TIRZ Revenues calculated
pursuant to Section VI(A)of this Service and Assessment Plan.
"TIRZ Ordinance" means an ordinance adopted by the City Council authorizing the use of
TIRZ Revenues for project costs under the Tax Increment Financing Act, Texas Tax Code,
Chapter 311, as amended, relating to the Authorized Improvements as provided for in the Tax
Increment Reinvestment Zone No. Project Plan and Financing Plan (including amendments or
supplements thereto).
"TIRZ Revenues" mean, for each year, the amounts paid by the City from the TIRZ No. tax
increment fund pursuant to the TIRZ Ordinance to reduce an Annual Installment, as calculated
each year by the Administrator in collaboration with the City, in accordance with Section VI.B
of this Service and Assessment Plan.
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Section II
PROPERTY INCLUDED IN THE PID
The PID is located within the City and contains approximately 56.884 acres of land. A map of
the property within the PID is shown on Appendix A to this Service and Assessment Plan. The
property within the PID is proposed to be developed as follows:
Table II-A
Proposed Development
Proposed Development Type Quantity Measurement
Residential-Single-Family 12I units
Residential—Row Houses 68 units
Residential-Townhomes 70 units
Residential -Multi-Family 393 units
Retail 67,100 Square feet
The current Parcels in the PID are shown on the Assessment Roll and the map included as
Appendix A.
The estimated number of units at the build-out of the P1D is based on securing the appropriate
land use approvals for the property, the anticipated subdivision of property in the PID, and the
Developer's estimate of the highest and best use of the property within the PID.
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Section III
DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS
Section 372.003 of the PID Act defines the improvements that may be undertaken by a
municipality or county through the establishment of a public improvement district,as follows:
372.003.Authorized Improvements
(a) If the governing body of a municipality or county finds that it promotes the interests of
the municipality or county,the governing body may undertake an improvement project
that confers a special benefit on a definable part of the municipality or county or the
municipality's extraterritorial jurisdiction. A project may be undertaken in the
municipality or county or the municipality's extraterritorial jurisdiction.
(b) A public improvement may include:
(i) landscaping;
(ii) erection of fountains,distinctive lighting,and signs;
(iii) acquiring, constructing, improving, widening, narrowing, closing, or rerouting
of sidewalks or of streets,any other roadways,or their rights-of way;
(iv)construction or improvement of pedestrian malls;
(v) acquisition and installation of pieces of art;
(vi)acquisition,construction,or improvement of libraries;
(vii) acquisition,construction,or improvement of off-street parking facilities;
(viii) acquisition, construction, improvement, or rerouting of mass transportation
facilities;
(ix) acquisition, construction, or improvement of water, wastewater, or drainage
facilities or improvements;
(x) the establishment or improvement of parks;
(xi) projects similar to those listed in Subdivisions(i)-(x);
(xii) acquisition, by purchase or otherwise, of real property in connection with an
authorized improvement;
(xiii) special supplemental services for improvement and promotion of the district,
including services relating to advertising, promotion, health and sanitation,
water and wastewater, public safety, security, business recruitment,
development,recreation,and cultural enhancement;and
(xiv) payment of expenses incurred in the establishment, administration and
operation of the district.
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After analyzing the public improvement projects authorized by the PID Act, the City has
determined that the Authorized Improvements as described in Appendix B and shown on the
diagram included as Appendix C should be undertaken by the City for the benefit of the property
within the PID. The estimated Authorized Improvement Costs are shown by Table 111-A.
Table III-A
Estimated Authorized Improvement Costs
Total
Estimated PID
Authorized Improvements Costs
Roadway improvements $4,600,255
Water distribution system improvements $1,787,071
Sanitary sewer collection system improvements $1,540,755
Storm sewer collection system improvements $4,222,678
Landscaping,hardscaping and amenities $2,111,197
Other costs including design,survey,geotech,bonding,
mobilization,contingency and miscellaneous soft costs $2,156,024
Total—Estimated Authorized Improvement Costs $16,417,980
The costs shown in Table III-A are current estimates and may be revised in Annual Service Plan
Updates.
The Authorized Improvements to be constructed include roadway improvements, water
distribution system improvements, storm sewer collection system improvements, wastewater
collection system improvements and landscaping & public park improvements that will
provide service to the property intended for development within the PID.
Road Improvements
The roadway improvements include approximately 26,708 SY of 6-inch reinforced
concrete pavement and 31,500 SY of 8-inch treated sub- grade compacted to 95% SPD,
striping, and street signage. A detailed description of the roadway improvements and the
related costs are provided in the engineering cost estimates included as Appendix B. All
roadway improvements will be constructed according to the City requirements. See Table III-
A for cost details.
Water Distribution System Improvements
The water distribution system improvements consist of approximately 1,870 linear feet of
12- inch water lines, approximately 2,149 linear feet of 8-inch water lines, fire hydrants and
trench safety procedures. A detailed description of the water distribution system improvements
and the related costs are provided in the engineering cost estimates included as Appendix B.
All water distribution system improvements will be constructed according to the City
requirements. This development will be served in its entirety by the City for all water and
sewer services. See Table III-A for cost details.
sanitary Sewer lmnrovements
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The sanitary sewer collection system improvements consist of approximately 4,234 linear
feet of 8-inch PVC, including sewer laterals, manholes and trench safety procedures. A
detailed description of the sanitary sewer collection system improvements and the related
costs are provided in the engineering cost estimates included as Appendix B. All sanitary
sewer collection system improvements will be constructed according to the City
requirements. See Table III-A for cost details.
Storm Drainage Improvements
The storm sewer collection system improvements consist of approximately 3,086 linear feet
of various sized RCP pipes, manholes, junction boxes, inlets, headwalls and trench safety
procedures. A detailed description of the storm sewer collection system improvements and
the related costs are provided in the engineering cost estimates included as Appendix B. All
storm sewer collection system improvements will be constructed according to the City
requirements. See Table III-A for cost details.
Landscaping
Landscaping, which includes public park improvements, include the creation of a 4-acre
central lake, stone walls and pathways on approximately four acres, installation of over 1/2
mile of 6' wide concrete paths with seating areas, public art and public lighting details and
street lighting. All. landscaping improvements will be constructed according to the City
requirements. See Table III-A for cost details.
The water and sanitary sewer improvements listed above help create the grid for the water
line system and the sanitary sewer collection system for the property. The storm sewer
improvements collect and control the runoff created on each Parcel and conveys this runoff to
the large central lake, which also serves as a storm water detention pond for the property in
the PID. The road improvements provide for the traffic circulation within the property,
allowing access to and from the adjacent roadways to each Parcel.
Additional details of the Authorized Improvements are shown in Appendix B attached to this
Service and Assessment Plan.The method of cost allocation is explained in Section V(C).
The Authorized Improvements will provide a special benefit to all Assessed Property in the PID.
As described in Section V(c), the estimated Costs of the Authorized Improvements are fully
allocated to the Assessed Property within the PID. Table III-B shows the allocation of the
Authorized Improvements costs to the PID.
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Table III-B
Allocation of the Authorized Improvement Costs
Total
Estimated Cost
Total Percentage Allocated to
Authorized Improvements Estimated Cost Allocated the PID
I Roadway improvements $4,600,255 100% $4,600,255
Water distribution system improvements $1,787,071 100% $1,787,071
Sanitary sewer collection system improvements $1,540,755 100% $1,540,755
Storm sewer collection system improvements $4,222,678 100% $4,222,678
Landscaping and amenities $2,111,197 100% $2,111,197
Other costs including design,survey,geotech,
bonding,mobilization,contingency and
miscellaneous soft costs $2,156,024 100% $2,156,024
Total $16,417,980 $16,417,980
The costs shown in Tables III-A and [Il-B are estimates and may be revised in Annual Service
Plan Updates. The detailed costs of the Authorized Improvements are shown in Appendix B to
this Service and Assessment Plan. Savings from one line item may be applied to a cost increase
in another line item. These savings may be applied only to increases in costs of the Authorized
Improvements(i.e.,the improvements for the benefit of property within the PID).
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Section IV
SERVICE PLAN
A. Sources and Uses of Funds
The PID Act requires a service plan to cover a period of at least five years. The service plan is
required to define the annual projected costs and indebtedness for the Authorized Improvements
undertaken within the PID. All of the PID Costs are expected to be expended during the first five
years after adoption of this Service and Assessment Plan. The plan shall be reviewed and
updated annually for the purpose of determining the annual budget for the Authorized
Improvements. The annual update to this Service and Assessment Plan is herein referred to as the
"Annual Service Plan Update."
Certificates of Obligations (CO) are expected to be issued in 2016. Table IV-A shows the
estimated sources and uses of the CO.
Table IV-A
Sources and Uses of Funds
Sources of Funds: Funded by
the PID
CO proceeds $16,582,160
Total sources of funds $16,582,160
Uses of Funds•
Construction costs:-
Estimated construction costs paid with CO $16,417,980
Subtotal:Construction costs $16,417,980
Costs of issuing the CO
Estimated CO issuance costs $164,180
Subtotal:Costs of issuing the CO $164,180
Total uses of funds $16,582,160
This sources and uses of funds table is subject to revision and the actual sources and uses of
funds for any line item may be different than shown above. The sources and uses of funds
shown in Table IV-A will be finalized upon the issuance and sale of the CO.
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B. Annual Costs and Indebtedness
The annual projected costs and annual projected indebtedness is shown by Table IV-B. The
annual projected costs and indebtedness is subject to revision and shall be updated each in the
Annual Service Plan Update to reflect any changes in the PID Costs or indebtedness expected for
each year.
Table IV-B
Annual Projected Costs and Indebtedness
Annual Annual
Year Projected Projected
Costs Indebtedness
1 $16,582,160 $16,582,160
2 $0 $0
3 $0 $0
4 $0 $0
5 $0 $0
Total $16,582,160 $16,582,160
C. Annual Debt Service
The annual debt service is shown by Table IV-C. The annual debt service includes the projected
annual debt service on the CO.
The Annual Installments represent the amount of Assessments expected to be collected each year
based on the amount of debt service on the CO as shown in Table IV-A, which are to be issued
to pay the Authorized Improvement Costs shown in Table III-B, and the Annual Collection
Costs. The annual debt service and collection costs amounts shown are subject to revision and
shall be updated each year in the Annual Service PIan Update to reflect any changes in the
amount of principal, interest and collection costs expected to be paid each year.
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Resolution No.15-1577,Page 19 of 45
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Table IV-C
Projected Annual CO Debt Service
Period Total Debt
Ending Principal' Interest' Service
9/30/2016 $0 $414,554 $414,554
9/30/2017 $0 $829,108 $829,108
9/30/201& $196,113 $829,108 S1,025,221
9/30/2019 $407,07 $814,277 $1,221,334
9/30/2020 $427,665 $793,670 $1,221,334
9/30/2021 $449,315 $772,019 $1,221,334
9/30/2022 $472,062 $749,273 $1,221.334
9/302023 $495.960 $725,374 $1,221,334
9/30/2024 $521,068 $700,266 $1,221,334
9/30/2025 $547,447 $673,887 $1,221,334
9/30/2026 ' $575.161 $646,173 $1,221,334
9/30/2027 $604,279 $617,055 $1,221,334
9/30/2028 $634,871 $586,464 $1,221,334
9/30/2029 $667,011 $554,323 $1,221,334
9/30/2030 $700,778 $520,556 $1,221,334
9/30/2031 $736,255 $485,079 $1,221,334
9/30/2032 $773,528 $447,806 $1,221,334
9/30/2033 $812,688 $408,646 $1,221,334
9/30/2034 $853,830 ' $367,504 $1,221,334
9/30/2035 $897,056 $324,279 $1,221,334
9/30/2036 $942,469 $278.865 $1,221,334
9/30/2037 $990,181 $231,153 $1,221,334
9/30/2038 S1,040,309 $181,025 $1,221,334
9/30/2039 $1,092,975 $128,359 $1,221,334
9/30/2040 $1,148,307 $73,027 $1,221,334
9/30/2041 $595.773 $14,894 $610,667
$16.582.160 $13,166,746 $29,748,906
I -The CO principal and interest amounts shown above are estimated.The interest
amounts are estimated using 5%interest rate and issuance date of 02/15/16.
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Resolution No. 15-1577,Page 20 of 45
Draft
Section V
ASSESSMENT PLAN
A. Introduction
The PID Act requires the City Council to apportion the PID Costs on the basis of special benefits
conferred upon the property because of the Authorized Improvements. The PID Act provides
that the PID Costs may be assessed: (i)equally per front foot or square foot; (ii)according to the
value of the property as determined by the governing body, with or without regard to
improvements on the property; or(iii) in any other manner that results in imposing equal shares
of the cost on property similarly benefited. The PID Act further provides that the governing
body may establish by ordinance or order reasonable classifications and formulas for the
apportionment of the cost between the municipality and the area to be assessed and the methods
of assessing the special benefits for various classes of improvements. Section V of this Service
and Assessment Plan describes the special benefit received by each Parcel of Assessed Property
as a result of the Authorized Improvements, provides the basis and justification for the
determination that this special benefit exceeds the amount of the Assessments, and establishes
the methodology by which the City Council allocates the special benefit of the Authorized
Improvements to Parcels in a manner that results in equal shares of the PID Costs being
apportioned to Parcels similarly benefited. The determination by the City Council of the
assessment methodology set forth below is the result of the discretionary exercise by the City
Council of its legislative authority and governmental powers and is conclusive and binding on
the Developer and all future owners within the Assessed Property.
B. Special Benefit
Benefited Property receives a benefit from the Authorized Improvements. The Assessed Property
will receive a direct and special benefit from the Authorized Improvements, and this benefit will
be equal to or greater than the amount of the Assessments. The Authorized Improvements(more
particularly described in line-item format on Appendix B to this Service and Assessment Plan)
and the costs of issuance and payment of costs incurred in the establishment,administration,and
operation of the PID shown in Table IV-A are authorized by the Act. These improvements are
provided specifically for the benefit of the Assessed Property.
The majority owner of the Assessed Property has acknowledged and agreed to the
determinations and findings as to benefits by the City Council in the Service and Assessment
Plan and the Assessment Ordinance, specifically including the special benefit conferred on the
Assessed Property by the Authorized Improvements, as well as any other terms and provisions
within these documents, and have, therefore, consented to the imposition of the Assessments to
pay the PID Costs. The owner or Developer is acting in its interest in consenting to this
imposition, because the special benefit conferred upon the Assessed Property by the Authorized
Improvements exceeds the amount of the Assessments.
The public improvements provide a special benefit to the Assessed Property as a result of the
close proximity of these improvements to the Assessed Property and the specific purpose of
these improvements of providing infrastructure for the Assessed Property. In other words, the
Assessed Property could not be used in the manner proposed without the construction of the
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Resolution No.15-1577,Page 21 of 45
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Authorized Improvements. The Authorized Improvements are being provided specifically to
meet the needs of the Assessed Property as required for the proposed use of the property.
The Assessments are being levied to provide the Authorized Improvements that are required for
the highest and best use of the Assessed Property (i.e., the use of the property that is most
valuable, including any costs associated with that use). Highest and best use can be defined as
"the reasonably probable and legal use of property, which is physically possible, appropriately
supported, financially feasible, and that results in the highest value." (Dictionary of Real Estate
Appraisal, Third Edition.) The Authorized Improvements are expected to be required for the
proposed use of the Assessed Property to be physically possible, appropriately supported,
financially feasible,and maximally productive.
The Developer has evaluated the potential use of the property and has determined that the
highest and best use of the property is the use intended and the legal use for the property as
described in Section II of this Service and Assessment Plan.The use of the Assessed Property as
described herein will require the construction of the Authorized Improvements.
Funding of the Authorized Improvement Costs by the PID is determined to be the most
beneficial means of financing the Authorized Improvements. Since the Authorized
Improvements are required for the highest and best use of the Assessed Property, and the PID
provides the most beneficial means of providing the Authorized Improvements,the Assessments
result in a special benefit to the Assessed Property, and this special benefit exceeds the amount
of the Assessments. This conclusion is based on and supported by the evidence, information,
and testimony provided to the City Council.
In summary, the Assessments result in a special benefit to the Assessed Property for the
following reasons:
I. The Authorized Improvements are being provided specifically for the use of the Assessed
Property, are necessary for the proposed best use of the property and provide a special
benefit to the Assessed Property as a result;
2. The Developer has consented to the imposition of the Assessments for the purpose of
providing the Authorized Improvements and the Developer is acting in its interest by
consenting to this imposition;
3. The Authorized Improvements are required for the highest and best use of the property;
4. The highest and best use of the Assessed Property is the use of the Assessed Property that
is most valuable (including any costs associated with the use of the Assessed Property);
5. Financing of the Authorized Improvement Costs by the PID is determined to be the most
beneficial means of providing for the Authorized Improvements;and,
6. As a result, the special benefits to the Assessed Property from the Authorized
Improvements will be equal to or greater than the Assessments.
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Resolution No.15-1577,Page 22 of 45
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C. Allocation of Costs to Assessed Property
The Authorized Improvements will provide a special benefit to all Assessed Property in the PID.
Accordingly, the estimated Authorized Improvement Costs are fully allocated to the Assessed
Property within the PID. Table III-B summarizes the allocation of Authorized Improvement
Costs. The costs shown in Table III-B are estimates and may be revised in Annual Service Plan
Updates, but may not result in increased Assessments without consent by each of the owners of
the Parcels to the imposition of the increased Assessments to pay for the Actual Costs.
D. Assessment Methodology
I. The PID Costs may be assessed by the City Council against the Assessed Property so
long as the special benefit conferred upon the Assessed Property by the Authorized
Improvements equals or exceeds the Assessments. The Authorized Improvement Costs may be
assessed using any methodology that results in the imposition of equal shares of the Authorized
Improvement Costs on Assessed Property similarly benefited.
1 For purposes of this Service and Assessment Plan, the City Council has determined that
the Authorized Improvement Costs shall be allocated to the Assessed Property spreading the
entire Assessment across the Parcels based on the ratio of estimated average value at build-out
within each Land Use Class ("Equivalent Units") as calculated and shown in Appendix D using
the proposed development types and quantity anticipated to be developed on each Parcel. The
Equivalent Units for each class of property are based on the estimated value of the intended use
of the property, as shown in Appendix D. As explained in Appendix D, such method of
allocation will result in the imposition of equal shares of the Authorized Improvement Costs to
Parcels similarly benefited.
Upon subsequent divisions of any Parcel, the Assessment applicable to it will then be
apportioned pro rata based on the Equivalent Units of each newly created Parcel. The result of
this approach is that the Assessment allocated to each Parcel, as each Parcel is subdivided, will
be allocated an assessment that reasonably relates to the benefit received by the Parcel from the
Authorized Improvements.
3. The following table (Table V-A)shows the calculation of the Assessment per Equivalent
Unit. The description of each Land Use Class and the calculation of the Equivalent Units are
described in Appendix D. There are a total of 406.77 Equivalent Units expected to be built on the
Assessed Property. The total Assessments, which represent the amount of CO to be issued, are
equal to $16,582,160 as shown in Table IV-C. As a result the Assessment per Equivalent Unit is
$40,765 as shown in Table V-A below.
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Resolution No.15-1577,Page 23 of 45
Draft
TABLE V-A
Assessment per Unit
Estimated Total Assessment
Value per Equivalent Equivalent per Unit
Land Use Class Units unit Unit Factor Units (per 1,000 s.f.)
Class 1 121 $300,000 1.00 121.00 $40,765
Class 2 68 $250,000 0.83 56.44 $33,835
Class 3 70 $212,500 0.71 49.70 $28,943
Class 4 393 $90,000 0.30 117.90 $12,230
Class 51 67.10 $275,000 0.92 61.73 $37,504
Total 406.77
Total Assessments(Total CO issued) $16,582,160
Assessment per Equivalent Unit $40,765
—
he ueuts and estimated values per unit are presented per 1,800 square feet=closed as succi in the calculation of tliie Egwvalen[t:mt Patton.
E. Assessments
The Assessments will be levied on each Parcel as shown in the Assessment Roll attached hereto
as Appendix E. The Annual Installments will be collected in the amounts shown on the
Assessment Roll, which may be subject to revisions made during an Annual Service Plan
Update.
F. Administrative Expenses
The cost of administering the PID and collecting the Annual Installments shall be paid for on a
pro rata basis by each Parcel based on the amount of Assessment levied against the Parcel.
Assessments will be collected each year for the payment of Annual Collection Costs and shall be
collected as part of and in the same manner as Annual Installments in the amounts shown on the
Assessment Roll, which may be revised based on actual costs incurred in Annual Service Plan
Updates.
G. Prepayment Reserve
Pursuant to the PID Act,the interest rate for Assessments may exceed the actual interest rate per
annum paid on the related CO by no more than one half of one percent(0.50%). The interest rate
used to determine the Assessments is one half of one percent(0.50%) per annum higher than the
actual rate paid on the CO, with up to 0.20% allocated to fund the associated interest charged
between the date of prepayment of an Assessment and the date on which CO are prepaid until
such Prepayment Reserve is 1.5% (one-and-half percent) of the outstanding CO amounts, and
0.30%allocated to fund a delinquency reserve account as described below.
H. Delinquency Reserve
The City has allocated initially up to 0.30%, until the Prepayment Reserve is fully funded and
0.5%afterwards, of the interest rate component of the Annual Installments to offset any possible
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Resolution No. 15-1577,Page 24 of 45
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delinquent payments. The delinquency reserve shall be funded up to an amount equal to the
maximum annual CO debt service payment or 10% (ten percent) of the outstanding CO balance
(as calculated and adjusted by the Administrator and approved by the City every year), but in no
event will the annual collection, together with the prepayment reserve be more than 0.50%
higher than the actual interest rate paid on the CO. If the prepayment reserve and delinquency
reserve contain the amounts specified herein, then the 0.50% of the interest rate component of
the Annual Installments will be used to retire CO early or other uses related to the Authorized
Improvements as approved by City.
I. TIRZ Credit
Pursuant to the TIRZ Ordinance,the City has agreed to use TIRZ Revenues generated from each
Parcel to offset a portion of such Parcel's PID assessments (the "TIRZ Credit"). The Annual
Installment for each Parcel shall be calculated by taking into consideration any TIRZ Credit
applicable to the Parcel. The TIRZ Credit applicable to each Parcel shall be calculated as
described under Section VI(B)of this Service and Assessment Plan.
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Resolution No. 15-1577,Page 25 of 45
Draft
Section VI
TERMS OF THE ASSESSMENTS
A. Amount of Assessments
The Assessment for each Parcel is shown on the Assessment Roll, and no Assessment shall be
changed except as authorized by this Service and Assessment Plan(including the Annual Service
Plan Updates) and the PID Act. The Assessments shall not exceed the amount required to repay
principal and interest on the CO and Annual Collection Costs.
The Annual Installments shall be collected in an amount sufficient to pay principal and interest
on the CO, to fund the prepayment reserve and delinquency reserve described in Section V, and
to cover Administrative Expenses of the PID. The Annual Installment for each Parcel shall be
calculated by taking into consideration any TIRZ Credit applicable to the Parcel. The TIRZ
Credit for each Parcel shall be calculated using the following formula:
A=Bx(C=D)
Where the terms have the following meanings:
A = the TIRZ Credit amount for a Parcel
B = the total TIRZ Revenues collected for the preceding year
C = the total Equivalent Unit of the Parcel
D = the total Equivalent Units of all Parcels
The TIRZ Revenues collected in any given year shall be used to calculate the TIRZ Credit in the
following year(i.e., TIRZ Revenues collected in 20I5 shall be used to calculate the TIRZ Credit
applicable to Annual Installments to be collected in 2016). TIRZ Credits shall be calculated for
those Parcels that are subject to Assessments by the PID. The total TIRZ Revenues collected
from all Parcels in the PID shall be used to calculate the TIRZ Credit applicable to each Parcel in
the PID based on the above formula. The total TIRZ increment amount generated by all Parcels
of Assessed Property will be divided by the total Equivalent Units in the PID to determine the
TIRZ credit applicable to each Parcel of Assessed Property.. The Equivalent Units to be used for
the calculation of the TIRZ Credit shall be determined by the Administrator based on the
information available to the Administrator at the time of such calculations.
B. Reallocation of Assessments
1. Subdivision
Upon the subdivision of any Parcel, the Assessment for the Parcel prior to the subdivision shall
be reallocated among the new subdivided Parcels according to the following formula:
A=Bx(C=D)
Where the terms have the following meanings:
A = the Assessment for each new subdivided Parcel
B = the Assessment for the Parcel prior to subdivision
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Resolution No. 15-1577,Page 26 of 45
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C = the estimated number of units to be built on each newly subdivided Parcel
D = the sum of the estimated number of units to be built on all of the new subdivided
Parcels
The calculation of the estimated number of units to be built on a Parcel shall be performed by the
Administrator and confirmed by the City Council based on the information available regarding
the use of the Parcel. The estimate as confirmed shall be conclusive. The number of units to be
built on a Parcel may be estimated by net land area and reasonable density ratios.
The sum of the Assessments for all newly subdivided Parcels shall equal the Assessment for the
Parcel prior to subdivision. The calculation shall be made separately for each newly subdivided
Parcel. The reallocation of an Assessment for a Parcel that is a homestead under Texas law may
not exceed the Assessment prior to the reallocation and to the extent the reallocation would
exceed such amount, it shall be prepaid by such amount by the party requesting the subdivision
of the Parcels. Any reallocation pursuant to this section shall be reflected in an Annual Service
Plan Update approved by the City Council.
2. Consolidation
Upon the consolidation of two or more Parcels,the Assessment for the consolidated Parcel shall
be the sum of the Assessments for the Parcels prior to consolidation. The reallocation of an
Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment
prior to the reallocation and to the extent the reallocation would exceed such amount, it shall be
prepaid by such amount by the party requesting the consolidation of the Parcels. Any
reallocation pursuant to this section shall be reflected in an Annual Service Plan Update
approved by the City Council.
C. Mandatory Prepayment of Assessments
1. If a Parcel subject to Assessments is transferred to a party that is exempt from the
payment of the Assessment under applicable law, or if an owner causes a Parcel subject to
Assessments to become Non-Benefited Property, the owner of such Parcel shall pay to the City
the full amount of the Assessment on such Parcel, plus all Prepayment Costs, prior to any such
transfer or act.
2. The payments required above shall be treated the same as any Assessment that is due and
owing under the Act, the Assessment Ordinance, and this Service and Assessment Plan,
including the same lien priority,penalties,procedures,and foreclosure specified by the Act.
D. Reduction of Assessments
1. If after all Authorized Improvements have been completed, there are excess Bond
proceeds being available to redeem CO, then the Assessments and Annual Installments for each
Parcel shall be reduced by an equal percentage such that the sum of the resulting reduced
Assessments and Annual Installments for all Parcels equals the amount required to repay the CO
after such redemption, including interest on the CO and Annual Collection Costs, and such
excess Bond proceeds shall be applied to redeem CO. The Assessment for each Parcel shall be
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Resolution No.15-1577,Page 27 of 45
Draft
reduced by an equal percentage such that the sum of the resulting reduced Assessments is equal
to the outstanding principal amount of the CO.
2. If all the Authorized Improvements are not undertaken, resulting in excess Bond proceeds
being available to redeem CO, then the Assessments and Annual Installments for each Parcel
shall be appropriately reduced by the City Council to reflect only the amounts required to repay
the CO, including interest on the CO and Annual Collection Costs, and such excess Bond
proceeds shall be applied to redeem CO. The City Council may reduce the Assessments and the
Annual Installments for each Parcel (i) in an amount that represents the Authorized
Improvements provided for each Parcel or(ii) by an equal percentage, if determined by the City
Council to be the most fair and practical means of reducing the Assessments for each Parcel,
such that the sum of the resulting reduced Assessments equals the amount required to repay the
CO, including interest on the CO and Collection Costs. The Assessment for each Parcel shall be
reduced pro rata to the reduction in the Assessments for each Parcel such that the sum of the
resulting reduced Assessments is equal to the outstanding principal amount of the CO.
E. Payment of Assessments
1. Payment in Full
(a) The Assessment for any Parcel may be paid in full at any time. Such payment shall
include all Prepayment Costs. If prepayment in full will result in redemption of CO, the payment
amount shall be reduced by the amount, if any, of interest through the date of redemption of CO
and reserve funds, if any, applied to the redemption, net of any other costs applicable to the
redemption of CO.
(b) If an Annual Installment has been billed prior to payment in full of an Assessment, the
Annual Installment shall be due and payable and shall be credited against the payment-in-full
amount.
(c) Upon payment in full of the Assessment and all Prepayment Costs,the City shall deposit
the payment in accordance with the CFA or other applicable documents; whereupon, the
Assessment shall be reduced to zero, and the owner's obligation to pay the Assessment and
Annual Installments thereof shall automatically terminate.
(d) At the option of the owner,the Assessment on any Parcel plus Prepayment Costs may be
paid in part in an amount sufficient to allow for a convenient redemption of CO as determined by
the Administrator. Upon the payment of such amounts for a Parcel, the Assessment for the
Parcel shall be reduced, the Assessment Roll shall be updated to reflect such partial payment,
and the obligation to pay the Annual Installment for such Parcel shall be reduced to the extent
the partial payment is made.
2. Payment in Annual Installments
The PID Act provides that an Assessment for a Parcel may be paid in full at any time. If not paid
in full,the PID Act authorizes the City to collect interest and amounts to pay Annual Collection
Costs in Annual Installments. An Assessment for a Parcel that is not paid in full will be
collected in Annual Installments each year in the amounts shown in the Assessment Roll, as
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Resolution No.15-1577,Page 28 of 45
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updated as provided for herein, which include interest and Annual Collection Costs. Payment of
the Annual Installments shall commence with tax bills mailed after the initial issuance of CO.
Each Assessment shall be paid with interest of no more than the lesser of(i) the actual interest
rate paid on the CO and(ii) 9%percent per annum. The Assessment Roll sets forth for each year
the Annual Installment for each Parcel based on an estimated interest rate of 5.0%and additional
interest at the rate of 0.5% for the prepayment reserve and delinquency reserve as described in
Section V(G) and(H). Furthermore,the Annual Installments may not exceed the amounts shown
on the Assessment Roll. The Assessment Roll, updated with the actual interest rates on the CO,
is shown as Appendix E.
The Annual Installments shall be reduced to equal the actual costs of repaying the CO and actual
Annual Collection Costs (as provided for in the definition of such term), taking into
consideration any other available funds for these costs, such as interest income on account
balances.
F. Collection of Annual Installments
No less frequently than annually, the City Council, or the Administrator, on behalf of the City
Council, shall prepare and the City Council shall approve, an Annual Service Plan Update to
allow for the billing and collection of Annual Installments. Each Annual Service Plan Update
shall include an updated Assessment Roll and a calculation of the Annual Installment for each
Parcel. Annual Collection Costs shall be allocated among Parcels in proportion to the amount of
the Annual Installments for the Parcels. Each Annual Installment shall be reduced by any credits
applied under this Service and Assessment Plan, such as capitalized interest, interest earnings on
any account balances, and any other funds available for such purpose, including any existing
deposits for a prepayment reserve. Annual Installments shall be collected by the City in the
same manner and at the same time as ad valorem taxes and shall be subject to the same penalties,
procedures, and foreclosure sale in case of delinquencies as are provided for ad valorem taxes of
the City. The City Council may provide for other means of collecting the Annual Installments to
the extent permitted under the PID Act. The Assessments shall have lien priority as specified in
the PID Act.
Any sale of property for nonpayment of the Annual Installments shall be subject to the lien
established for the remaining unpaid Annual Installments against such property and such
property may again be sold at a judicial foreclosure sale if the purchaser thereof fails to make
timely payment of the non-delinquent Annual Installments against such property as they become
due and payable.
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Section VII
THE ASSESSMENT ROLL
Appendix E identifies each Parcel within the PID, the Benefited Property, the Assessed Property
and Non-Benefited Property. The Assessment Roll includes each Parcel of Assessed Property,
the Assessment imposed on each Parcel and the Annual Installments to be paid each year for
each Parcel if the Assessment is not paid in full for any Parcel. The Assessment on each Parcel
is based on the number of units expected to be built on each Parcel, and the Assessment per unit
results,as explained herein.
Each Parcel of Assessed Property has been evaluated by the City Council (based on the
information provided by the Developer and other sources including information about the
developable area, proposed Owner Association Property and Public Property, best and highest
use of the property, and other development factors deemed relevant by the City Council) to
determine the proposed use of the Parcel. The proposed use is then multiplied by the Assessment
per Equivalent Unit forth in Table V-B of this Service and Assessment Plan,and the total of such
amounts shall constitute the "Assessment" for the Parcel as set forth on the Assessment Roll.
The Assessment Roll shall be updated upon the preparation of each Annual Service Plan Update
to reflect, for each Parcel, subdivisions, consolidations, prepayments, and reductions authorized
by this Service and Assessment Plan.
The Administrator shall prepare, and the City Council shall review and approve, annual updates
to the Assessment Roll as the Annual Service Plan Update to reflect the following matters,
together with any other changes helpful to the Administrator or the City and permitted by the
PID Act:(1)the identification of each Parcel as Benefited Property, Assessed Property, and Non-
Benefited Property; (ii)the Assessment for each Parcel, including any adjustments authorized by
this Service and Assessment Plan or in the Act; (iii) the Assessment for each Parcel, including
any adjustments authorized by this Service and Assessment Plan or in the PID Act; (iv) the
Annual Installment for the Parcel for the year(if the Assessment is payable in installments); and
(v) payments of the Assessment, if any, as provided by Section VI.0 of this Service and
Assessment Plan.
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Section VIII
MISCELLANEOUS PROVISIONS
A. Administrative Review
An owner of an Assessed Parcel claiming that a calculation error has been made in the
Assessment Roll, including the calculation of the Annual Installment, shall send a written notice
describing the error to the City not later than thirty (30) days after the date any amount which is
alleged to be incorrect is due prior to seeking any other remedy. The Administrator shall
promptly review the notice, and if necessary, meet with the Assessed Parcel owner, consider
written and oral evidence regarding the alleged error and decide whether, in fact, such a
calculation error occurred.
If the Administrator determines that a calculation error has been made and the Assessment Roll
should be modified or changed in favor of the Assessed Parcel owner, such change or
modification shall be presented to the City Council for approval, to the extent permitted by the
PID Act. A cash refund may not be made for any amount previously paid by the Assessed Parcel
owner(except for the final year during which the Annual Installment shall be collected or if it is
determined there are sufficient funds to meet the expenses of the PID for the current year), but an
adjustment may be made in the amount of the Annual Installment to be paid in the following
year. The decision of the Administrator regarding a calculation error relating to the Assessment
Roll may be appealed to the City Council. Any amendments made to the Assessment Roll
pursuant to calculation errors shall be made pursuant to the PID Act.
The decision of the Administrator, or if such decision is appealed to the City Council, the
decision of the City Council, shall be conclusive as long as there is a reasonable basis for such
determination. This procedure shall be exclusive and its exhaustion by any property owner shall
be a condition precedent to any other appeal or legal action by such owner.
B. Termination of Assessments
Each Assessment shall be extinguished on the date the Assessment is paid in full, including
unpaid Annual Installments and Delinquent Collection Costs, if any. After the extinguishment of
an Assessment and the collection of any delinquent Annual Installments and Delinquent
Collection Costs, the City shall provide the owner of the affected Parcel a recordable "Notice of
Cancellation of the PID Assessment."
C. Amendments
The City Council reserves the right to the extent permitted by the PID Act to amend this Service
and Assessment Plan without notice under the PID Act and without notice to property owners of
Parcels: (i) to correct mistakes and clerical errors; (ii) to clarify ambiguities; and (iii)to provide
procedures for the collection and enforcement of Assessments, Prepayment Costs, Annual
Collection Costs,and other charges imposed by the Service and Assessment Plan.
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D. Administration and Interpretation of Provisions
The City Council or the Administrator on behalf of the City council, shall administer the PID,
this Service and Assessment Plan, and all Annual Service Plan Updates consistent with the PID
Act, and shall make all interpretations and determinations related to the application of this
Service and Assessment Plan unless stated otherwise herein or in the CFA, such determination
shall be conclusive.
E. Severability
If any provision, section, subsection, sentence, clause or phrase of this Service and Assessment
Plan or the application of same to an Assessed Parcel or any person or set of circumstances is for
any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of
this Service and Assessment Plan or the application to other persons or sets of circumstances
shall not be affected thereby, it being the intent of the City Council in adopting this Service and
Assessment Plan that no part hereof or provision or regulation contained herein shall become
inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other part
hereof, and all provisions of this Service and Assessment Plan are declared to be severable for
that purpose.
If any provision of this Service and Assessment Plan is determined by a court to be
unenforceable, the unenforceable provision shall be deleted from this Service and Assessment
Plan and the unenforceable provision shall,to the extent possible, be rewritten to be enforceable
and to give effect to the intent of the City.
25
Resolution No. 15-1577,Page 32 of 45
Draft
Appendix A
The PID MAP
Resolution No. 15-1577,Page 33 of 45
Exhibit 9 .
„.• .<= The PID map
� i j
Draft
Appendix B
ESTIMATED COSTS OF AUTHORIZED IMPROVEMENTS
Resolution No. 15-1577,Page 35 of 45
Draft
Euless Midtown FIB No. 1
City of Euless, TX
Estimated Authorized Improvement Costs
Estimated
Description of Improvements Cost
Paving $2,500,255
Demolition and remediation $2,100,000
Subtotal:Roadway improvements $4,600,255
Water distribution system improvements $1,787,071
Sanitary sewer collection system improvements $1,540,755
Storm sewer collection system improvements $1,522,678
Right-of-Way and drainage pond acquisition: $2,700,000
Subtotal:Storm sewer collection system improvements S4,222,678
Landscaping, hardscaping and amenities $2,111,197
Bonding& Mobilization $431,900
Civil Eng.Design, Surveying, Staking&CA services $1,145,559
Construction Contingency $578,565
Subtotal: Other soft costs $2,156,024
Subtotal: Estimated Authorized Improvement Costs $16,417,980
Add: Estimated costs for issuing CO $164,180
Total Estimated Costs $16,582,160
e costs s own a•.ve are current estimates prom e. .y project engineer an.may.e revise.as nee. ..
Resolution No. 15-1577,Page 36 of 45
Draft
Appendix C
DIAGRAM OF THE AUTHORIZED IMPROVEMENTS
Resolution No. 15-1577,Page 37 of 45
_ 1 }.`AF�1. I • . -.� •+ y�'s1� ..� LOT SUMMARY '%
i x _ S
J i, "., r i •-•-•.,...;...L.: 41...., .J , • �'�f "`. �w O VILLAS ((0'x(25 Si LOTS 33%
Y / 3 � r„ -� • STOW YNOM 65 (25'7[!8') ti LOTF 33.1
"4-` '�+L'�..7.7f0:1-7" '"' "vt'>ti'V"'•.R.Y" "^", .y BROW HOU685 (24'x54') ss LOTS 27%
t -RA!'•'• ,xIig0+. • y.yr.. 4 ,��- t�HIGN DBNiITY GLU8Te R6 (O 40T6 I]9L
'-..‘;',7"..$.!.,..i ,�a: .,.27....:....,.....t.:.,..4.,..21.7.7...,- --,..,,,-,7.. .. TOTAL 243 LOTS
.....is,.'�e �" n.i"T.4d..+ 'e., jai uri•' ,y.�-a.,.� Sm34 :' i .�i 6''*�"' :.-rT^ :, -
o SH 183 -"" r�.
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t '°s•. y 4C 1• •REMOVES ASSISTED LIVING FACILITY #7 e!f•-i• `, ,ti•T• \
° 1 I •ADDITIONAL 44 LOTS .
?" t . 7 '{-� TOWN HOMES(25'7901-23 LOTS ® �'' _. _I .@..._.• _4^ ..-
iiss 21, y'' ROW HOUSES(24•x54') 21 LOTS ��. 4: S'TS�iA - F •r
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Draft
Appendix D
LAND USE CLASS AND EQUIVALENT UNITS
For purposes of allocating the Assessments, the Assessed Property has been, or is
anticipated to be, classified in one of five Land Use Classes. The following table shows the
proposed residential and non-residential Land Use Class within the PID.
Table D-1
Proposed Development within the PID
Lot Type Description Proposed Development
Residential
Land Use Class 1 Single-Family 121 units
Land Use Class 2 Row Houses 68 units
Land Use Class 3 Townhomes 70 units
Land Use Class 4 Multi-Family 393 units
Non-Residential
Land Use Class 5 Retail 67,100 Square Feet
The Land Use Classes shown in the Table are defined as follows:
"Land Use Class 1" means lots identified as such on the Assessment Roll, which are
referred to as single-family in the Euless Mid-Town 60 Zoning Ordinance as "Villas" (the
"PD") and being generally lots for a detached single family dwelling unit on individually
platted lots.
"Land Use Class 2" means lots identified as such on the Assessment Roll, which are
referred to as "Row Houses" in the PD and being generally lots for an detached single
family dwelling unit on individually platted lots.
"Land Use Class 3" means lots identified as such on the Assessment Roll, which are
referred to as "Townhomes" in the PD and being generally lots for an attached single
family dwelling unit on individually platted lots.
"Land Use Class 4" means lots identified as such on the Assessment Roll, which are
referred to as multi-family units in the PD and being generally dwelling units or suite of
rooms on one or more floors of a multi-family building.
"Land Use Class 5" means lots identified as such on the Assessment Roll, which are
referred to as retail in the PD, and being generally parcels used for retail purposes that may
be comprised of a single tenant or multiple tenants that make up a retail establishment and
are generally located on the ground floor of buildings or in a single building.
Resolution No.15-1577,Page 39 of 45
Draft
As explained under Section IV-D, for purpose of this Service and Assessment Plan, the
City Council has determined that the Costs of the Authorized Improvements to be financed
with the CO shall be allocated to the Parcels based on the estimated value at build-out.
For purposes of this Service and Assessment Plan,the City Council has determined that the
PID Costs shall be allocated to the Assessed Property spreading the entire Assessment
across the Parcels of Assessed Property based on the estimated Equivalent Units as
calculated and shown in Appendix D using the proposed development types and quantity
anticipated to be developed on each Parcel and average estimated values at build-out.
Allocation of Assessments by value is specifically authorized by statute. This approach is
particularly appropriate in this case, as the purpose of the improvements to be provided by
the PID is to allow for the development of the property to make the property more valuable.
Accordingly, allocating the Assessments in accordance with value will result in a
reasonable determination that equal shares of the PID Costs have been allocated to Parcels
similarly benefited.
Upon subsequent divisions of any Parcel, the Assessment applicable to it will then be
apportioned pro rata based on the Equivalent Units of each newly created Parcel.
Having taken into consideration the matters described above, the City Council has
determined that allocating the Assessments among Parcels based on estimated average
value is best accomplished by creating classifications of benefited Parcels based on the
"Land Use Class" defined above. These classifications representing the estimated average
value per unit relative to Land Use Class 1 (Residential — Single-Family) representing the
highest estimated average value per unit are set forth in Table D-2 below. Assessments are
allocated to each Lot Type on the basis of the estimated average value for each Land Use
Class. This is accomplished by giving each Land Use Class an Equivalent Unit factor.
Equivalent Units are the ratio of the estimated average value at build-out within each Land
Use Class, setting the Equivalent Unit factor for Land Use Class 1 (Residential — Single-
Family) to 1.0. The Equivalent Unit factor for Land Use Class 2 is calculated to be 0.80
($250,000 _ $300,000 = 0.83). The Equivalent Unit factor for each of the remaining Land
Use Classes is calculated accordingly and shown in Table D-2.
Table D-2
Equivalent Unit Factors
Estimated
Average Unit Equivalent Unit
Lot Type Value Factor
Land Use Class 1 (Residential- Single Family) $300,000 1.00 per dwelling unit
Land Use Class 2(Residential—Row houses) $250,000 0.83 per dwelling unit
Land Use Class 3 (Residential—Townhomes) $212,500 0.71 per dwelling unit
Land Use Class 4(Residential—Multi-Family) $90,000 0.30 per dwelling unit
Land Use Class 5 (Retail) $275,000 0.92 per 1,000 S .Ft
Resolution No. 15-1577,Page 40 of 45
Draft
The total estimated Equivalent Units are shown in Table D-3 below as calculated based
on the Equivalent Unit factors shown above and the number of units proposed to be built
within the PID.
Table D-3
Total Estimated Equivalent Units and
Assessment per Equivalent Units
Total
Planned Equivalent Equivalent
Land Use Class No. of units Unit Factor Units
Land Use Class 1 (Residential - Single Family) 121 I.00 121.00
Land Use Class 2(Residential—Row houses) 68 0.83 56.44
Land Use Class 3 (Residential—Townhomes) 70 0.71 49.70
Land Use Class 4(Residential—Multi-Family) 393 0.30 117.90
Land Use Class 5(Retail)—in 1,000 Sq. Ft 67.10 0.92 61.73
Total 406.77
Total Assessment(Total CO issued) $16,582,160
Assessment per Equivalent Units $40,765
Resolution No. 15-1577,Page 41 of 45
Draft
Appendix E
ASSESSMENT ROLL
Resolution No. 15-1577,Page 42 of 45
Draft
Appendix E
Assessment Roll
All Parcels
Total Assessment $16,582,160
Total Equivalent Units 406.77
Cumulative Amount Principal and Annual Collection
Year of Assessments Interest' Costs2 Total Annual Installment
1 $16,582,160 $414,554 $117,911 $532,465
2 $16,582,160 $829,108 $118,611 $947,719
3 $16,582,160 $1,025,221 $119,325 $1,144,546
4 $16,386,047 $1,221,334 $119,073 $1,340,407
5 $15,978,989 $1,221,334 $117,780 $1,339,114
6 $15,551,324 $1,221,334 $116,399 $1,337,734
7 $15,102,009 $1,221,334 $114,926 $1,336,260
8 $14,629,947 $1,221,334 $113,354 $1,334,688
9 $14,133,988 $1,221,334 $111,678 $1,333,012
10 $13,612,920 $1,221,334 $109,893 $1,331,227
11 $13,065,473 $1,221,334 $107,992 $1,329,327
12 $12,490,311 $1,221,334 $105,970 $1,327,304
13 $11,886,032 $1,221,334 $103,819 $1,325,153
14 $11,251,162 $1,221,334 $101,532 $1,322,866
15 $10,584,151 $1,221,334 $99,103 $1,320,437
16 $9,883,372 $1,221,334 $96,522 $1,317,857
17 $9,147,117 $1,221,334 $93,783 $1,315,117
18 $8,373,589 $1,221,334 $90,876 $1,312,211
19 $7,560,901 $1,221,334 $87,793 $1,309,127
20 $6,707,070 $1,221,334 $84,524 $1,305,858
21 $5,810,015 $1,221,334 $81,058 $1,302,393
22 $4,867,546 $1,221,334 $77,386 $1,298,720
23 $3,877,364 $1,221,334 $73,496 $1,294,830
24 $2,837,055 $1,221,334 $69,377 $1,290,711
25 $1,744,080 $1,221,334 $65,016 $1,286,350
26 $595,773 $610,667 $60,400 $671,067
Total $29,748,906 $2,557,595 $32,306,501
1 -The principal and interest amounts are estimated based on 2/15/16 CO issuance date at an estimated interest rate of 5%per year.
2-The Annual Collection Costs shown include the estimated district administration and assessment collection costs and the additional
0.5%interest to be collected for prepayment reserve and delinquency reserves.The actual Administrative Expense amounts will be
updated each year in the Annual Service Plan Update.
Resolution No.15-1577,Page 43 of 45
EXHIBIT B
CITY OF EULESS, TEXAS
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT a public hearing will be conducted by the City Council
of Euless, Texas on January 26, 2016 at 7:00 p.m. in the Council Chambers, City Hall, at
201 N. Ector Drive Euless, Texas 76039. The public hearing will be held to consider
proposed assessments to be levied against the assessable property within the Euless
Midtown Public Improvement District (the "District") pursuant to the provisions of Chapter
372 of the Texas Local Government Code, as amended (the "Act").
The general nature of the proposed public improvements (collectively, the "Authorized
Improvements") are: (i) street and roadway improvements, including related sidewalks,
drainage, utility relocation, signalization, landscaping, lighting, signage, off-street parking
and right of way; (ii) establishment and improvement of parks and open space, together
with the design, construction and maintenance of any ancillary structures, features or
amenities such as trails, playgrounds, walkways, lighting and any similar items located
therein; (iii) sidewalks and landscaping, including entry monuments and features,
fountains, lighting and signage; (iv) acquisition, construction, and improvement of water,
wastewater and drainage improvements and facilities; (v) projects similar to those listed
in subsections (i) - (iv) above authorized by the Act, including similar off-site projects that
provide a benefit to the property within the District; (vi) payment of costs associated with
operating and maintaining the public improvements listed in subparagraphs(i)-(v)above;
and (vii) payment of costs associated with developing and financing the public
improvements listed in subparagraphs (i) - (v) above, and costs of establishing,
administering and operating the District. These Authorized Improvements shall promote
the interests of the City and confer a special benefit upon the Property.
The total costs of the Authorized Improvements, including the costs of creating the
District, is $16,582,160.
The boundaries of the District include approximately 56.884 acres of land generally
located south of Highway 183, east of Industrial Boulevard and north of West Euless
Boulevard.
All written or oral objections on the proposed assessment within the District will be
considered at the public hearing.
A copy of the Assessment Roll relating to the Authorized Improvements(the"Assessment
Roll"), which Assessment Roll include the assessments to be levied against each parcel
Resolution No. 15-1577,Page 44 of 45
in the District for the Authorized Improvements, is available for public inspection at the
office of the City Secretary, 201 N. Ector Drive, Euless, Texas 76039.
Resolution No. 15-1577,Page 45 of 45