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Council consents to Preserve Municipal Management District; members emphasize safeguards and limited city liability
Summary
The Midland City Council unanimously consented to creation of the Preserve Municipal Management District, a developer-driven municipal-finance vehicle that can issue bonds and levy assessments to fund infrastructure and maintenance inside the Preserve.
City officials and council members discussed a developer-request to create a Municipal Management District (MMD) for The Preserve and unanimously consented to the district's creation. Council members and staff described the structure and safeguards of an MMD: it is a separate governmental entity that can issue municipal bonds to finance capital and maintenance projects within its geographic boundaries; the district has a board of directors composed of property owners or their designees; and the city does not issue the bonds nor automatically assume the debt.
Councilwoman Robin Poole emphasized that the district would not create a tax burden for existing Midlanders: "This is not a tax burden to the citizens of Midland. This is not coming out of Midlanders pockets whatsoever," she said, adding that the incremental assessment would fall on those building within the Preserve. Mayor Lori Blong said the request is limited to property owners who control the footprint and volunteered to take on the additional assessment: "I think 1 thing to really highlight strongly for people who are watching this ... is, this is only for the property that they already own. We are not imposing something on other property owners that they're not interested in."
Staff told council the district was being pursued to address higher-than-expected drainage costs and to provide financing tools that could make the project's infrastructure feasible without drawing on general city revenues. Council members asked about dissolution mechanisms, and staff said the district could be dissolved by board vote, owner petition, or by city ordinance; council discussion clarified the city would take on debt only if it voted to dissolve and assume obligations.
Council members said they were supportive in part because the developer has a local track record and because the proposed development agreement would require promised amenities and maintenance to be documented. Staff and council agreed that a development agreement would establish needed safeguards tying amenities and construction quality to district financing.
Council voted unanimously to consent to the MMD; staff said the development agreement and any subsequent changes to the MMD's board would return to council for approval as required.
