04-28-2025 Agenda Packet - Laserfiche WebLink

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memorandum Item No. 17 TO: City Council Rose Beverly, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Reimbursement Agreement for Forestbrook Public Improvement District No. 1 DATE: April 28, 2025 BACKGROUND: On October 14, 2024, City Council passed and approved a resolution creating Forestbrook Public Improvement District No. 1 (the PID) which comprises some 59.62 acres of land at the Forestbrook housing development site in southeast Paris. The purpose of the PID is to allow the issuance of PID bonds to provide funding to the developer, Lone Star Planned Developments, LLC, for the construction of authorized improvements consisting primarily of infrastructure related to the project. At that same meeting, City Council approved a Development Agreement with the developer STATUS OF ISSUE: The developer has now requested that the City issue PID bonds for Phases 1 and 2 of the project, which bonds, pursuant to the Development Agreement, shall not exceed $20,000,000.00. Pursuant to the Texas Public Improvement District Act (the Act, located in Chapter 327 of the Texas Local Government Code), the bonds are to be paid from assessments on each parcel in the housing development, and the City has no liability with respect to repayment thereof. The PID is a reimbursement PID which requires the developer to advance costs for the authorized improvements for reimbursement from the PID bond fund. Accordingly, the developer and the City's PID team, including staff, bond counsel, financial consultants, and PID consultants, have negotiated the attached "Reimbursement Agreement—Forestbrook Public Improvement District No. 1" (the Agreement) for your review and approval. The Agreement satisfies the Requirements of Section 372.023 of the Act. Additional documentation will be brought to you for your approval at further meetings prior to bonds being issued. BUDGET: None. Expenses have been and will be borne by the developer and the PID. RECOMMENDATION: Staff recommends adopting the attached resolution approving the attached "Reimbursement Agreement—Forestbrook Public Improvement District No. L"