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Council sends Empire Industrial Park reimbursement agreement to executive session, returns and approves reimbursement arrangement
Summary
Council reviewed a developer reimbursement agreement related to Empire Industrial Park public improvement district work, took legal questions in executive session, and returned to approve a professional-services reimbursement agreement requiring developer deposits to cover city expenses.
Council members discussed and then took into executive session a proposed reimbursement agreement between the City of Eagle Pass and Empire Industrial Park LLC tied to the city's Public Improvement District (PID) No. 1. After returning to open session the council voted to approve the agreement.
Why it matters: the agreement establishes how the city will be compensated for expenses it incurs while processing the PID and related TIRZ/PID documents and coordinating professional services. The agreement requires an initial developer deposit to cover city-incurred expenses and sets a process for monthly invoices and replenishment of the fund.
Bond counsel, representing the developer and the city, explained that the agreement creates a special fund with an initial $30,000 deposit from the developer to pay city expenses associated with the PID and related documents. Counsel noted the developer's obligation to reimburse the city survives whether or not the PID ultimately issues bonds or the development is completed.
Council asked legal questions and voted to send the item to executive session for attorney consultation under Texas Government Code section 551.071. Following executive session, the council returned to open session and voted unanimously to approve the reimbursement agreement as presented. Staff recorded that the agreement requires monthly invoicing and that the developer must replenish the fund by $5,000 or more when requested to pay outstanding city expenses.
The item will proceed per the approved agreement; staff noted counsel and the city's bond attorneys have been involved in drafting the documents.
