Paris council approves $2 million Forest Brook PID bond sale to reimburse developer

The Paris City Council on Oct. 27 approved the issuance and sale of $2,000,000 in special-assessment revenue bonds for the Forest Brook Public Improvement District No. 1 and authorized a contract for collection of the assessments.

The action, moved and seconded during the regular meeting, carried 6–0. Mark McClaney, a city project lead, told the council the bond issue is intended to reimburse the developer for infrastructure already installed in phase 1: "This bond issue of $2,000,000 will basically put close to $1,600,000 as a reimbursement," he said. McClaney said phase 1 covers 87 lots; the overall Forest Brook project will total roughly 291–293 homes across three phases.

McClaney and bond counsel Chris Settle said the bonds are non-rated, assessment-backed obligations paid only by properties in the development — not by Paris taxpayers. McClaney explained why yield was higher than municipal debt: "We had one purchaser of all the bonds and it was at 6.125%, much higher than what the city would pay," he said. "So it's a riskier bond."

Council also approved an agreement with Texas Gov Solutions LLC to serve as the special assessment collector for the first year, when the owner — not individual homeowners — will be the single payer on the tax bill. Staff said the goal is for future assessments to appear on the Lamar County appraisal district tax bill alongside property taxes.

The city’s presentation said the developer financed roughly $4.5 million in phase‑1 infrastructure; the $2 million bond issue reimburses a portion and transfers the completed roads, water and sewer systems to the city.

What’s next: staff said documents related to the bonds were approved and the city will complete the administrative steps to place assessments on the tax roll in subsequent months. The motion to adopt the ordinance was read aloud and the council voted unanimously.