Hunters Crossing Public Improvement District A MENDED AND R ESTATED S ERVICE AND A SSESSMENT P LAN Bastrop Town Hall Meeting 1
What is a PID? • MUD, HOA, POA, PID – Alphabet Soup! • A PID is a contiguous AREA OF LAND for which the owners petition a city or county to undertake public improvement projects requested by the owners and approved by the city or county and financed through assessments levied by the city or county against the land based on the special benefit that the city or county determines is conferred on the land by the improvements . City Council performs legislative acts . • Hunters Crossing Local Gov’t. Corp. performs • governmental function of operating the District. 2
What is a PID? • A PID is governed exclusively by the city or county that creates it (other forms of governance are “advisory”). • The city or county that creates a PID has no legal liability to pay assessments or any obligations secured by assessments. • PIDs take no money from the general fund. 3
PID Process - Creation PID boundaries may be described by reference to existing streets and roads with a notation that the metes and bounds are on file and available for inspection. Published Notice DISTRICT RESOLUTION Authorizing the CREATED Notices WITHIN SIX Mailed 15 d 20-DAY Notice MONTHS PROTEST (USUALLY SAME DAY) PERIOD Construction can begin or existing improvements can be purchased or, if Published Notice of Resolution begun before the 20th day, may be purchased on completion. A petition is a prerequisite. Metes & Bounds Metes & Bounds CONTIGUOUS (or less) LANDOWNER Resolution PUBLIC HEARING ON Petition authorizing the ADVISABILITY OF THE PID [MAJORITY] IMPROVEMENTS [372.009] [372.005] [372.009] - the general nature of the proposed improvement - the nature of the improvement - the estimated cost of the improvement - the estimated cost of the improvement - the proposed method of assessment - the method of assessment 4
PID Process - Levy of Assessments 372.016 Part 1 FILED WITH THE CITY SECRETARY AND MADE AVAILABLE FOR PUBLIC INSPECTION Proposed Official Assessment Official Reports Roll Reports Mailed Notice Proposed [372.016(c)] Proposed Assessment Service & Roll Assessment Resolution Resolution Proposed Published Notice Plan determining Service & re obligations [372.016(b)] total cost Assessment of the Plan governing body under .016 After the total cost of an improvement is determined , the governing body shall prepare an assessment roll that states the assessment against each parcel as determined by the method of assessment chosen. 372.016(a). The governing body shall file the assessment roll with the secretary for public inspection. 372.016(b). The governing body shall require the secretary to publish notice of the governing body’s intention to consider the assessments at a public hearing. 372.016(b). 5
PID Process - Levy of Assessments 372.016 Part 2 ? yrs 10d Mailed Notice [372.016(c)] . Published Notice Final [372.016(b)] FILE IN THE DEED Assessment RECORDS Roll Final Final Service & Assessment Issue Bonds Assessment Roll Plan Ordinance levying COMPLETE Property Code assessments IMPROVEMENTS 5.014 Notice Public Hearing [372.016] • Levy assessments before property becomes a “homestead.” 6
What public improvement projects may be undertaken? • Statutory “menu” – 372.003 • Limitations: • Location • Public purpose • General benefit 7
• Statutory “menu” of public improvement projects 372.003 “ verbs ” ERECT DEVELOP ACQUIRE REHAB CONSTRUCT EXPAND IMPROVE LEVY HR WIDEN STRAIGHTEN HR NARROW ENCLOSE HR CLOSE DRAIN HR REROUTE GRADE HR INSTALL FILL HR ESTABLISH PROTECT HR HR = Home Rule 8
Statutory “menu” of public improvement projects 372.003 “nouns” LANDSCAPING LIBRARIES HR RIVER FOUNTAINS OFF-STREET PARKING FACILITIE3S HR CREEK LIGHTING MASS TRANSPORTATION FACILITIES BAYOU HR SIGNS WATER FACILITIES/IMPROVEMENTS HR STREAM SIDEWALKS WASTEWATER HR FACILITIES/IMPROVEMENTS BODY OF WATER STREETS DRAINAGE FACILITIES/IMPROVEMENTS ALLEY HR ROADWAYS PARKS HR TERRITORY RIGHTS-OF-WAY AFFORDABLE HOUSING O P E N S P A C E AG PEDESTRIAN MALLS PROJECTS SIMILAR ART AG F IR E E Q U IP M E N T HR = Home Rule AG = AG Guidelines 9
Statutory “menu” of public improvement projects Real Property, Services, and Expenses A public improvement project may include the acquisition, by purchase or otherwise, of real property in connection with an authorized improvement . A public improvement project may include 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. A public improvement project may include payment of expenses incurred in the establishment, administration, and operation of the district. 10
Summer ‘17 • City and HCLGC engaged legal counsel to assist in interpreting PID Service and Assessment documentation, due to confusion and ambiguous terms and provisions. • Team recognized updates were necessary to the PID Original Service and Assessment Plan as it remained without amendment, despite modifications to land use and the passage of time. • 15 Residents sued the City, the County, the State of Texas, the PID, the HCLGC, the Developer, Forestar USA Real Estate Group and several engineering firms alleging flood damage due to drainage design. 11
Fall ‘17 • Litigation of the HCPID Residents suit ensued. • Document collection and evaluation performed to reconstruct timeline for PID Creation and Operation for past 15 years. • City Team contacted Forestar (USA) Real Estate Group, Inc. as the Developer to seek cooperation on a complete and comprehensive update. 12
Winter ‘17 • The Developer asserted they were owed $17,317,898 , plus interest at 6%, compounded annually since 2010 and wanted the update to the plan to provide for the additional amounts. • Protracted negotiations ensued, anticipating litigation with Developer over asserted debt owed by the property owners. • Negotiations reached impasse. 13
Spring ‘18 • Forestar sells PID and Developer owned property to T.F. Hunters Crossing, who takes over as Developer. • Update Negotiations restart, with legal counsel for both parties involved in evaluating the impact the passage of time has had to the District and work on a method to update the PID Service and Assessment documentation, to resolve confusion and ambiguous terms and provisions. 14
Summer ‘18 • Negotiations appear nearing complete. • City Team and Developer reach impasse on determination of the interest owed on the Developer’s investment in the PID (both past and future) • Financial Experts at Briggs & Vaselka, Co. are engaged to assist in financial analysis and reconciliation and are tasked to evaluate all fiscal data. 15
Summer - Fall ‘18 • Fact-Finding and PID Update Negotiations take place between T.F. Hunters Crossing and City Team. • Real Estate documents are negotiated and prepared for the transfer of dozens of real property parcels and easements from Developer to City, HCLGC and for HOA Condominium of Pool Facility. 16
Fall ’18 – Spring ‘19 • Construction of remaining PID Improvements. • Parties make substantial progress on update. • Parties reach impasse on interest accrual provisions and other financial terms. 17
Spring – Summer ‘19 • HCLGC suspends payment of reimbursement to Developer for the cost of capital improvements. • Developer issues demand letter for payment. • Parties restart negotiation and reach amicable terms. 18
PID Boundary 19
History of the PID • Sept. 11, 2001 – Res. R-2001-19 Created PID • Nov. 11, 2003 – Res. R-2003-34 amended R-2001-19 to revise estimated costs of improvements and method of assessments • Dec. 9, 2003 – Ord. 2003-35 levied assessments and approved the Original Service and Assessment Plan (the “SAP”) • Dec. 14, 2004 – Ord. 2004-42 amended Ord. 2003- 35 to revise scrivener's and mathematical errors in SAP 20
Title Owner Notice • The rights of the District to levy taxes and issue bonds, recorded in Volume 1405, Page 572, Official Records of Bastrop County, Texas. (283.001 acres) • The rights of the District to levy taxes and issue bonds, as set out in City of Bastrop Ordinance 2003-35, as shown on the following Plat Records of Bastrop County, Texas: Plat Cabinet No. 4, Page 111B Plat Cabinet No. 5, Page 11A Plat Cabinet No. 5, Page 142B Plat Cabinet No. 4, Page 131A Plat Cabinet No. 5, Page 21A Plat Cabinet No. 5, Page 143A Plat Cabinet No. 4, Page 131B Plat Cabinet No. 5, Page 21B Plat Cabinet No. 5, Page 143B Plat Cabinet No. 4, Page 154A Plat Cabinet No. 5, Page 90B Plat Cabinet No. 5, Page 151A Plat Cabinet No. 4, Page 159B Plat Cabinet No. 5, Page 105B Plat Cabinet No. 5, Page 151B Plat Cabinet No. 4, Page 175B Plat Cabinet No. 5, Page 113A Plat Cabinet No. 4, Page 187A 21
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