Temple TIRZ board approves financing-plan amendment as staff outlines multiple roadway, sewer and drainage projects

The Temple Tax Increment Reinvestment Zone board on Monday reviewed progress on major North Loop infrastructure projects and approved an amendment to the zone's financing plan to reallocate reserve funds and land-sale proceeds to several near-term projects.

Project chair John Keith said the board would "go through a few slides here to sign our current projects," and summarized progress on sewer work, street extensions and several downtown and park-area projects. Keith said crews have completed most sewer work under the railroad but that a final connection across the tracks requires an additional change order estimated at $593,835 to upsize the line and increase pumping capacity to handle higher flows.

The financing-plan amendment presented by Tracy reallocated several funding sources to permit near-term project releases. Tracy said the amendment's primary sources included approximately $6.6 million from land-acquisition savings and roughly $5.3 million freed by releasing bond reserve funds following a May bond refunding. "When we issued those bonds, it was required through our covenant that we maintain a reserve fund," Tracy said, noting the refunding permitted replacement of some reserves with surety bonds and the planned presentation of related items to city council.

Why it matters: the reallocation lets the zone move forward on the Outer Loop and Old Howard Road segments, starts design for the Power Drive extension and funds an emergency sewer change order identified during construction.

Key project updates

- Sewer upsize near Niagara: Keith said the project team has run the sewer line through the right-of-way and under the tracks, but the last connection requires an unplanned change order to increase capacity. He said the change order is likely to be ratified at the next meeting and quantified it at $593,835.

- Old Howard Road and Power Drive extension: Keith said the Old Howard project is roughly 90% complete in design and that the zone plans to extend Power Drive to create an intersection identified as a preferred site for a future fire station. The overall construction cost estimate shown in discussion for the Boulevard/Old Howard section was about $12,000,009.50 for the phase discussed; a more extensive portion of Old Howard was discussed with a planning-level projection near $21 million to extend through a floodplain and complete intersections.

- Veterans Boulevard drainage work: board members and staff discussed a stand-alone detention/retention element the zone will fund outside of the grant scope to reduce floodplain area and allow the Veterans Boulevard grant-funded construction to proceed. David (project staff) said the roadway design will be elevated from current levels; the design standard discussed was to carry a 5-year storm and be sized for a 25-year storm.

- Downtown/city-center and Santa Fe Market: staff reported ongoing work to complete intersections and pedestrian connections in downtown phase 2. A separate construction change order for the Santa Fe Community Market to replace deteriorated decorative letters (agenda item 5) was discussed as a safety-related change order for $42,003.40.

Board financial and process context

Tracy and Tyler summarized how the amendment reassigns freed reserves and other sources to specific projects. Tracy said the refunding of the 2018 bond issue released reserve funds that will be replaced with surety bonds and noted the zone will present a related item to city council on Aug. 7 to finalize reserve-replacement actions. Tracy also said the refunding produces ongoing annual savings (she estimated about $70,000 a year) that are being directed to public-utilities work in the amendment.

Board action

The board voted to adopt the financing-plan amendment as presented. Chair proceedings show a motion, a second and voice votes of "aye," after which the chair said the motion carried.

Ending

Staff said several projects still await the release of construction funds and regulatory approvals (including approvals from TxDOT and rail and federal permitting agencies). Board members indicated the zone will continue design work where feasible and bring change orders or contract amendments back for ratification at future meetings.