Council approves Heirloom development agreements, PUD and creation of Heirloom PID; developer to build major collector and provide fire-site

The City Council on Aug. 26 approved a set of interrelated actions to advance the Heirloom master-planned development in Georgetown’s extraterritorial jurisdiction, including a development and construction agreement, second reading of a Planned Unit Development ordinance, and creation of the Heirloom Public Improvement District (PID).

Nick Woolery, assistant city manager, told council the ETJ agreement and associated PUD cover roughly 619 acres north of Ronald Reagan Boulevard and west of Williams Drive (RM 2338). The agreement makes the city the exclusive water and wastewater provider for the site, identifies transportation obligations across multiple future-mobility corridors and establishes conditions for PID financing.

Why it matters: The approvals commit the developer to build major public infrastructure that the city does not yet own and begin the PID process that can be used to finance on- and off-site improvements. Several elements — including a developer requirement to provide a minimum 3-acre site for a fire station, a wastewater allocation cap and limits on early multifamily hook-ups — carry direct implications for service planning and future bond-financing decisions.

Key provisions and requirements from the approved agreement and PID creation - Site and process: The ETJ agreement addresses development of about 618.98 acres and lays out steps toward PID formation, service plans, an assessment roll and later financing agreements. The council adopted the development agreement by resolution and created the PID by resolution after a public hearing. - Water/wastewater: The agreement requires city water/wastewater service and sets a wastewater capacity limit of 3,975 LUEs (loading units) that include the GISD site. Staff said the GISD property likely will not develop immediately. - Multifold limits and community facilities: The agreement caps multifamily connections at 350 units prior to Sept. 30, 2028, and requires the developer to dedicate at least a 3-acre site for a future fire station within the project. - Transportation obligations: The development will be responsible for constructing a primary collector from Ronald Reagan to the Williams-Drive area and making multiple intersection improvements. Because the project is large and includes several future mobility-plan roads (Ronald Reagan, Williams/RM 2338, County Road 248, a future collector and northern arterial), staff and the developer negotiated waivers and other PID-policy flexibilities tied to how early the collector is built. - PID-policy waivers: Council approved waivers that, if the developer builds the full primary collector in the first final plat, would allow (a) a longer issuance window for PID bonds (city policy default 10 years; request 15 years), (b) a lower value-to-lien ratio for the first bond issuance (2:1 instead of the standard 4:1), and (c) limited authority to issue bonds ahead of construction for that first issuance provided developer posts fiscal security to ensure completion.

Council discussion and safeguards Staff and the city’s financial advisors described the risks of early bond issuance and increased leverage if a 2:1 ratio is used for an initial issuance. Woolery said the agreement requires the developer to post fiscal security to cover the difference between construction cost and PID proceeds if bonds are issued before construction is complete and to provide appraisals selected by the city so the city can evaluate asset value supporting the first bond issuance.

Councilmembers asked questions about what types of fiscal security would be acceptable; the developers’ representative indicated a letter of credit or performance bond would be a likely option.

Next steps - Prepare PID financing agreement and supporting documents (service and assessment plan, assessment roll). - Coordinate construction timing and potential county road work where the county maintains Ronald Reagan Boulevard. - Proceed with financing steps and any required public hearings and bond authorizations.

Speakers (sources used in this report) - Nick Woolery, Assistant City Manager, City of Georgetown (presented the ETJ development agreement) - Travis Baird, Assistant Planning Director, City of Georgetown (PUD presentation) - Logan Kimball, Developer representative (commented on acceptable fiscal security options) - Councilmember Hood (mover on development agreement), Councilwoman Parr (second on development agreement)

Authorities referenced - Chapter 372, Texas Local Government Code (PID Act) referenced in PID caption and process requirements.

Clarifying details extracted from the meeting - Project area: ~618.98 acres (ETJ) - Wastewater LUE cap: 3,975 LUEs (includes GISD site) - Multifamily cap before 9/30/2028: 350 units - Minimum fire-station site: 3 acres - Assessment rate example (a separate PID, Georgetown Village PID, was shown earlier at $0.12 per $100 assessed value for its SAP)

Ending Council approved the development agreement, PUD second reading and creation of the Heirloom PID, enabling the developer and the city to proceed with more-detailed financing and construction planning. The PID financing agreement, service & assessment plan, and any bond authorizations will return to council for separate approvals and represent the next decision points for this multi-year project.