By Kim Hilsenbeck
With its 5-0 approval for creating a Public Improvement District (PID) for the La Cima development, a 2,400-unit project on the outskirts of San Marcos, Hays County Commissioners could issue an estimated $80 million in bonds.
A PID allows capital for new developments through the issuance of bond debt that is repaid over time by the homeowners who live in the district. Each home would be assessed a portion of the debt, based on their property value. However, Commissioner Debbie Ingalsbe noted that while the anticipated debt is $80 million, the appraisal is not yet complete and could be higher or lower.
“The assessments are tied to appraised value [with an] $80 million max and we don’t have the appraisals yet,” she said.
Under the terms of the PID, Hays County Commissioners will serve as the PID’s Board of Directors.
Ingalsbe also pointed out that in Section 1D of the proposed agreement, it discusses the nature of services and improvements.
“It states what funds can be used for, such as playgrounds, pools, lighting,” she said. “I’m not sure we want to pay for these types of articles. I want the court to be very diligent in decisions about what it pays for. Improvement must serve a county public purpose.”
County attorney Mark Kennedy said the language in the PID agreement mirrors that of PID development agreements at the state level, so it may have language that doesn’t apply in this case.
“But the commissioners have had extensive conversations with developer and what might or might not be included,” he said.
Located on 2,000 acres at the intersection of RR 12 and Wonder World Drive, La Cima would have high-end homes in the $250,000 to $1 million range. Proponents of the development believe it will help the city of San Marcos bring in executive style jobs.
In an agreement approved last week, San Marcos will annex La Cima.
