Agenda

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City Council Regular Meeting

Meeting Date:

10/11/2022

BACKGROUND

Over the last year or so, staff has been approached by a few developers asking whether the City would support the creation of Public Improvement Districts (PIDs) and Tax Increment Reinvestment Zones (TIRZs) to fund public improvements. PIDs are an economic development financing tool authorized by Chapter 372 of the Texas Local Government Code. They level an assessment on properties within the boundaries of the PID who will benefit from the improvements, generally infrastructure.

City and EDC staff worked to develop a policy to provide guidance on the use of PIDs. The policy provides for a fee to apply for a PID as well as petition requirements and funding for administrative costs associated with a PID. The policy covers both reimbursement and bonded PIDs. The policy covers the maximum assessment and disclosure to buyers.

GOAL

Authorize a policy to guide property owners, city staff and Council on the use of PIDs.

COMMUNITY BENEFIT

Provides for the orderly development of infrastructure in a fiscally sound and sustainable manner.

SUMMARY OF RECOMMENDED ACTION

Approval of the proposed PID policy.

FISCAL IMPACT

There is minimal fiscal impact to the City under the proposed PID policy. There is a $20,000 non-refundable fee required to file a petition for a PID. This fee is to cover the estimated staff time and cost to evaluate the PID. If a PID is created, the person proposing the PID has to deposit funds to cover the anticipated administrative costs of the PID. Finally, PIDs are funded through an assessment of the property.

RECOMMENDATION

Approval of Resolution 22-R-118.

Attachments
PID Policy
Res 22 R 118