Northlake council approves $15.455 million certificates of obligation and a slate of development actions

NorthlakeTown Council on March 13 approved the issuance of $15,455,000 in combination tax and limited surplus revenue certificates of obligation to fund a package of water, sewer and road projects and covered several related development and infrastructure items in a string of votes.

The ordinance authorizing the certificates passed unanimously after council heard bond pricing results and credit ratings from the town’s financial advisers. Marty Hsu of Hilltop Securities told council the competitive sale produced a winning bid from Fidelity Capital Markets with a true interest cost of 4.19 percent and that both S&P Global and Fitch Ratings affirmed the town’s double-A grade. John Thompson, representing town staff, said the issuance principal of $15,455,000 plus the expected premium and closing costs will fund projects totaling about $16.1 million as budgeted.

Why it matters: the sale moves previously budgeted capital projects into construction and finance; the premium from the sale is expected to cover the remaining project gap between the sold amount and the engineer estimate. "It is not something that we woke up today and said we're gonna sell $16,000,000 worth of bonds," Hsu said, describing the months-long underwriting and rating process. "You should feel proud — you are only two notches away from a perfect score."

Votes at a glance - Ordinance authorizing sale of Town of Northlake combination tax and limited surplus revenue certificates of obligation, series 2025, principal amount $15,455,000: motion by Councillor Fowler, second by Councillor Kelly; tally: 7 yes, 0 no; outcome: approved. Notes: Hsu reported a winning bid from Fidelity Capital Markets (TIC 4.19%); S&P and Fitch affirmed double-A ratings.

- Consent item C: contract for Fort Worth 24-inch water main additional capacity (consent agenda): approved on consent, tally reported 7 yes, 0 no; outcome: approved. Notes: referenced as an ongoing, previously discussed project; engineer estimate and budget capacity discussed by staff.

- Creation of a reinvestment zone (Northlake Business Park, 407 corridor) allowing tax abatement incentives: motion to approve (mover: Councillor Kelly; second: Councillor Holmes); tally: 6 yes, 1 no; outcome: approved. Staff said the zone covers 68 acres and would incentivize light-industrial/flex development under a six-year sliding abatement schedule that reduces ~20% per year.

- Call public hearing to consider renaming several segments of Cleveland Gibbs Road and related connector segments: motion to call public hearing (mover: Mayor); tally: 6 yes, 1 no; outcome: council will hold a public hearing at the next meeting. Staff and emergency services said the renaming improves navigation and emergency response because several disconnected segments create confusion for dispatchers and responders.

- Waiver of water and sewer impact fees for a new fire station (inside town limits; previously in ETJ): motion to waive fees (mover/second not specified in transcript record); tally: 7 yes, 0 no; outcome: approved. Staff estimated combined Town water/sewer impact fees and Fort Worth pass-through fees total approximately $182,000 plus a Fort Worth pass-through of roughly $21,000; council concluded the waiver avoids effectively double-taxing emergency services districts that are funded by property tax.

- Roadway impact fee credit/adjustment for Simpson Properties (northwest quadrant): motion to approve (mover not specified); tally: 7 yes, 0 no; outcome: approved. Staff reported the single-family road impact fee for the area is about $14,680.28 (as stated) and the property owner provided in-kind road work and materials (two loads of bladed gravel, drainage ditch repair, clearing) with a market value that approximately offsets the fee.

- Executive session outcomes: (a) authorize negotiation and execution of contract to purchase 1.3 acres for an elevated water storage tank; motion by Councillor Kelly, second by Councillor Holmes; tally: 7 yes, 0 no; outcome: approved. (b) authorize town manager to negotiate and execute a development agreement and conveyance of land to Northport Partners (Ashmore & 35W) with economic development incentives; motion by Dr. Sessions, second by Councillor Fowler; tally: 7 yes, 0 no; outcome: approved.

Context and next steps: staff said bond proceeds are expected to be received in April and that premium proceeds will cover closing costs and the remaining project balance. Council also directed staff to proceed with the public-notice steps required by state law for the reinvestment zone and the planned street-name changes, including mailed notices to affected property owners. Resident Joel McGregor spoke during public comment raising concerns about tax abatements and long-term debt exposure; his remarks were entered into the public record but did not change council action.

Quotations "It only takes one buyer to get the transaction done and we can feel confident that you are getting the best possible rate when you do access the market because of the underlying credit strength of the town," Marty Hsu said of the bond sale.

"If our property values tank, we're gonna lose a bunch of income," resident Joel McGregor said during public comment while urging caution on incentives and abatements.

Ending Council members said they view the package as the next step to deliver projects already prioritized in the town budget and to support planned economic development along the 407 corridor. Several agenda items will return with implementing documents and public hearings as required by statute.