Council approves Morgan Farms Public Improvement District; developer attorney says agreement carries no TIF

The City of Josephine on Nov. 12 approved a resolution creating the Morgan Farms Public Improvement District (PID) to enable assessments that will help fund on-site infrastructure for the new Morgan Farms development.

Robert Miklos, attorney for the developer, told council a petition and required public notices had been submitted and said the PID will allow assessments on homes to help pay infrastructure costs tied to annexation and development standards. Miklos said the development agreement contemplates approximately $23,000,000 of improvements and that the PID structure allows assessments to be levied on properties to share those costs.

Council members asked whether the development agreement or the PID creates a Tax Increment Financing (TIF) commitment. "The development agreement has 0 TIF," Miklos replied, adding that TIF language was included only as a catchall in case a future decision created one — but that no TIF monies are being requested at this time.

Andre Ilo of Hilltop Securities, the city—s financial advisor, described how a PID administrator (P3 Works) would be paid by administrative assessments on the lands and said developers often pre-fund administrative costs until assessments are levied; he told the council those administrative costs are not necessarily paid from the city general fund.

Council moved, seconded and voted to approve the resolution creating Morgan Farms PID under Chapter 372 of the Texas Local Government Code. No roll-call tally beyond general "all in favor" language is recorded in the transcript.