Seguin PFC approves Lily Springs workforce apartment term sheet with 50-year opt-out after debate

The Seguin Public Finance Corporation on Wednesday approved a term sheet with LightPath Corporation to develop the Lily Springs apartment project near Cordova Road and U.S. Highway 46, adopting a memorandum of understanding that includes a 75-year lease structure and an option for the city to remove the property from the PFC arrangement at year 50. The motion passed; Council Member Ewald voted no.

City Manager Parker said the arrangement is structured as a revenue-sharing partnership rather than a straight tax abatement: “this is not a true 75 year abatement,” he said, explaining revenue flows and sale provisions that differ from a conventional exemption.

Under the term sheet presented to the PFC, about half the units would be market-rate; 40% would be affordable at 80% of area median income (AMI) and 10% at 60% AMI. The agreement would allocate the first sale proceeds differently than later sales: the first sale is tied to 15% of net profits and later sales would yield 2% of gross proceeds to the city…