El Dorado approves CID and RHID and development agreement for Cedar Ridge Estates

The El Dorado City Commission approved a development agreement and ordinances and resolutions to create a Community Improvement District (CID) and a Residential Housing Incentive District (RHID) for the Cedar Ridge Estates subdivision, clearing the way for city-issued general-obligation bonds to fund streets, water, sanitary sewer and stormwater infrastructure.

The actions matter because they establish the legal and financing framework the city says it will use to pay for public infrastructure that will serve the new subdivision: the city would issue general-obligation temporary notes or bonds and use RHID increment revenues to pay debt service, with CID assessments available against unimproved lots if RHID revenues fall short.

Mitch, bond counsel from Gilmoreville, told the commission the financing plan layers two tools. "CIDs are a pretty, nifty little tool," he…