Council approves public improvement district for Crossing at Montgomery after public hearing

The Montgomery City Council on Tuesday adopted a resolution creating a public improvement district (PID) for the Crossing at Montgomery development, approving the district after a public hearing and discussion of assessment terms and homeowner protections.

The PID will fund public infrastructure for the 86-acre neighborhood known in the filings as the Crossing at Montgomery. Developer representatives described a financing plan based on an annual special assessment and a 30-year repayment term. Bertrey Moss, a developer participating in the proposal, summarized the district’s structure during the hearing: "The assessment is 2,000 per year." The council approved the resolution by voice vote after a motion and second; the mayor declared "the ayes have it."

The PID is limited to the legal description approved by council and will assess only properties inside that district, officials said at the hearing. Moss and other project representatives said the assessment would cover water lines, sanitary sewer, stormwater and streets within the PID and that the assessment is intended to be about one-third or less of the hard construction cost for those public improvements. He said the PID financing helps make the development feasible: "Otherwise, the properties would remain, you know, as they are."

Several residents and local real-estate professionals pressed the council and developers on how the charge would affect homeowners. Cheryl Fox, a resident who spoke during the public hearing, said homeowners must be given clear information: "I'm concerned about how transparent each homeowner will be advised of" the assessment. Marilee Thompson, who said she had owned nearby property for 26 years, warned the council about disclosure and long-term homeowner burden: "the disclosure has not been very good in the past." Thompson and another speaker said annual assessments of $2,000 can be a material added cost to a new buyer.

City staff described the state and local procedural safeguards for PIDs. A city representative said the Local Government Code and recent state statutory changes require that buyers receive notice; she explained that homebuyers typically sign a PID notice at closing and that title companies must record the assessment. The staff member also described the annual audit/oversight process: "We anticipate the city hiring an independent third party to review the ... invoices and the information regarding assessment and to basically audit that. That cost is not paid for by the city though. It's paid out with the assessments."

Developers and staff told council members the PID would include routine disclosures at contract signing, title closing and through annual billings; homeowners may also have the option to pay the principal earlier to avoid interest. Several speakers compared PID rules to other financing mechanisms such as MUDs and cited the 30-year sunset built into this agreement.

After discussion the council voted to approve the resolution creating the Crossing at Montgomery PID. City staff said the city will hire or otherwise secure third-party services required by the PID statute to audit project costs and present annual assessments to council.

The resolution passed on a voice vote; council members indicated the PID will be subject to the development agreement and the legal requirements contained in state law and local code. Council members said the city will monitor disclosure and enforcement steps as building and sales proceed.

Council and staff said they will publish the resolution and follow the statutory notice steps required for PID formation; future council meetings will include annual reports from the PID auditor as required by law.