Friendswood Council approves preliminary PID plan and schedules public hearing for Friendswood City Center; bond timing discussed

City staff presented a preliminary service and assessment plan for the Friendswood City Center Public Improvement District (PID) on Oct. 7 and the council approved moving the plan forward and setting a public hearing on levy of assessments.

Staff summarized the PID's purpose, how it differs from the Tax Increment Reinvestment Zone (TIRZ), and what categories of work the PID may pay for under state law. Rod (staff) explained the plan covers initial public improvements such as roadways, earthwork, grading, detention and other infrastructure associated with the project and that certain items will be paid from different funding sources depending on whether they benefit only district property owners or a wider area.

Rod said portions of the fire station would be paid partly by the PID (about 12% as presented) with the remainder funded from increment generated by the TIRZ. Staff explained a TIRZ buy‑down mechanism whereby 70% of the created tax increment would be set aside to reduce PID assessments for property owners as value is created on the ground.

Council questioned timing and scale. Staff said bond issuance to reimburse developer-installed infrastructure is anticipated at the November council meeting and cited preliminary figures discussed in the presentation in the range of tens of millions (staff referenced $28 million and $37 million at different points), stressing these were preliminary estimates. Staff confirmed private property owners within the PID boundaries had signed the petition and been involved in drafting the plans and told the council the plan now calls for a public hearing on the assessment, which the council set for the Nov. 4 meeting.

Council approved the preliminary service and assessment plan and to schedule the required public hearing; staff described additional steps including approval of PID bond sales, final service and assessment plans and eventual levying of assessments if the process continues.