Terrell council approves preliminary plan for Arboretum Estates PID, authorizes developer reimbursement for completed water lines

The Terrell City Council on July 1 approved a preliminary service and assessment plan for the Arboretum Estates Public Improvement District (PID) and set public hearings on the proposed assessments for Aug. 5. Council also approved a related reimbursement agreement that lets the developer dedicate completed infrastructure — specifically water lines — to the city now and be reimbursed later when assessments are levied or PID bonds are issued.

Jordan Sawyer, the city’s PID administrator with P3 Works, told council the resolution before the body authorizes a formal summary of improvement costs and calls the statutorily required public hearing. “So tonight, as Jenna said, this is the action item to approve what's called the preliminary service and assessment plan,” Sawyer said.

City bond counsel Travis Lyle explained the reimbursement agreement: the developer wishes to convey and dedicate water lines to the city before the levy of assessments so construction and connection work can continue. “The developer wishes to go ahead and convey and dedicate those water lines to the city prior to the levy of the assessments,” Lyle said, adding that the agreement provides a mechanism to reimburse the developer once assessments are levied or PID bonds are issued.

Staff explained the PID mechanism is intended to fund improvements that provide a special benefit to the new subdivision; the developer is separately funding an estimated $6 million in private improvements not paid by the PID. Staff also noted overlays and tools that will affect future homeowner assessments, including a TIRZ/TERS overlay to reduce assessment amounts for property buyers and a maintenance mechanism for public areas.

Council voted unanimously (those present) to approve Resolution No. 2237 (preliminary service and assessment plan) and Resolution No. 2240 (reimbursement agreement). Donna Renee Anderson moved the motion on Resolution 2237 with a second from Mayor Ronnie Velasquez; the same mover and seconder pattern is recorded for the reimbursement agreement. Staff said the project is moving in phases and that accepting the completed water line will allow the developer to continue the next phase of development and allow connections to the newly dedicated main.

Council directed staff to proceed with the public-notice steps required by state law, to publish and post the assessment rolls and to hold the hearings on Aug. 5.