Council holds public hearing on 80-acre PID to fund $6.14 million wastewater project; no levy vote yet

Pearland City Council on Monday conducted a public hearing on a petition to create a Public Improvement District (PID) covering about 79.7 acres along Smith Ranch Road, south of Hughes Ranch Road, to finance wastewater infrastructure estimated at $6,135,450.

The council did not take a levy vote; the hearing was the first of two steps. Staff and the PID consultant Abdi Yacine (Municap) described the PID process under Chapter 3 of the Texas Local Government Code and said the PID would be governed by the council and could finance a lift station, gravity mains, force main and related easement acquisition. The proposed mechanism is a developer-financed reimbursement approach with a future assessment attached to properties in the PID when the levy is adopted.

Consultant Abdi Yacine explained the two-step process: (1) create the PID by resolution, then (2) prepare a service and assessment plan and later hold a second public hearing before levying assessments. Jonathan Pollard, development manager with the Pearland Economic Development Corporation, said the approximate total cost is $6.14 million, which divides to about $77,000 per acre based on the draft boundary. He said Rockefeller (a developer) has committed $1.5 million upfront and the PEDC will reimburse Rockefeller under a forthcoming agreement.

Property owners who testified included Carl Gehring (owner/operator of a business on Smith Ranch Road), Richard Atchison, Paul Edwards, Nick Modametti and Chris Moseley. Several told council that without sewer the land is difficult to sell or develop; Modametti said a mixed-use approval from 2022 cannot move forward without sanitary sewer and urged council to approve the PID process so developers can proceed. Tim Wooten of Rockflow (developer) told council Rockflow is willing to build lines and contribute to Wootton Road construction to move the project forward.

Speakers raised questions about assessment triggers, interest and cost overruns. Staff and consultant explanations included: assessments are typically triggered when a property sells to an unrelated party or when meaningful development occurs; interest would accrue only from the time an owner chooses installment payments after the assessment is triggered; and the development agreement being prepared will include language that property owners will not be liable for cost overruns beyond the stated project cost (staff said the PEDC and Rockefeller will cover overruns per the upcoming agreements).

Council members asked for more data showing the likely change in property value from adding sewer and roadway infrastructure; some council members also requested a clear explanation of how small, long-held parcels and residential owners would be affected. Staff said additional documents — the draft service and assessment plan, an engineer’s opinion of probable cost and draft development and reimbursement agreements — will be prepared for council and the next public hearing, planned for July. Council did not vote on PID creation at the June 23 meeting; staff said the creation resolution and associated agreements will return for council consideration in July.

For owners who do not sell or develop, staff said the assessment remains attached to the land and would not require payment until a triggering event. Staff also said state law requires seller/buyer disclosure of PID assessments at contract and closing stages and the PID administrator will handle disclosure, annual budgets and reporting.