BUDA — On Aug. 20, Buda City Council heard a presentation from Sundance Analytics on a resolution to accept a petition for the creation of a Public Improvement District (PID) for the upcoming Persimmon project.
“Tonight, we’re not voting to create the PID [and] we’re not voting to assess any PID assessments; we’re just sort of kicking off the process … We’re here to answer your questions. We’re here to take this process very seriously and our goal, at the end of it, is that everyone feels really good about all the decisions that are made and the outcome that’s achieved,” said McLean & Howard Partner Jeff Howard.
PID Consultant for MileStone Community Builders Patrick Bourne of Sundance Analytics began by discussing the PID creation and assessment process.
In June, council approved a development agreement for the Persimmon project, which included working with the city to create a PID, but before it could be submitted, 316.9 acres of land were de-annexed from the city of Austin’s extraterritorial jurisdiction (ETJ) into the Buda ETJ, as the PID Act allows the city to create a PID only on property within the city or ETJ. After, the developer submitted a petition for the entirety of the 774 acres of the proposed development.
According to Bourne, the PID petition is the first step in the process, which is what the council was voting on, as well as calling a public hearing. If accepted, a public notice would be posted on Sept. 1, or earlier, calling for the hearing at the Sept. 17 council meeting. It would be at this meeting that, if approved, the PID would be created. The bonds would then be issued and the PID assessments levied in either December or January.
“During that time period, we’ll be working very closely with city council, with staff, with the city’s bond counsel, with their PID administration, with your financial advisor, with the rest of your team in putting together and preparing the documents necessary for the assessment and for the bond issue, including the service and assessment plan, the bond indenture, acquisition and reimbursement agreement,” concluded Bourne.
Buda City Manager Micah Grau confirmed that the city’s PID consultant and financial team have been involved and reviewed the petition and will be doing a more in-depth presentation on the PID at the Sept. 17 meeting.
“I want to confirm that we have a fully executed development agreement,” said council member LaVonia Horne-Williams “[I think] we’re kind of jumping the gun here with this conversation about wanting to get this timeline going if that DA is not fully executed.”
Alleviating the council member’s concern, Howard noted that the DA is completed.
“The attorney general has indicated, as of [Aug.
20], that they see no problem going forward with this PID and with the future bond issuance.
Now, there is a pending lawsuit [from the city of Grand Prairie] and that lawsuit has raised some questions about Senate Bill 2038, which I’m sure you’ve had some briefing about. In this case, I don’t think it affects our coming back into the city’s ETJ.
The question is on the Austin ETJ. I will just tell you; I’ve looked on the law on that. I feel very, very confident that the city of Buda did everything correctly,” said Howard.
“The attorney general has given us the green light … In the unlikely event that that should change going forward, we will be prepared.”
Mayor Lee Urbanovsky motioned to set the public hearing date for Sept. 17 and begin the process of creating the PID, which passed unanimously.
Council will meet next on Sept. 3.
