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Timnath GID board hires Butler Snow LLP as bond and disclosure counsel ahead of proposed 2026 bond sale
Summary
The Timnath Landing GID approved engagement of Butler Snow LLP for bond counsel and disclosure counsel work tied to a proposed public offering of senior and subordinate limited‑tax general obligation bonds; staff said the engagement adds $115,000 in closing costs and the district expects initial net bond proceeds of about $6.4 million.
The Timnath Landing General Improvement District board voted unanimously on Nov. 18 to engage Butler Snow LLP as bond counsel and special disclosure counsel for a proposed public bond issuance tied to the Timnath Landings development.
Unidentified counsel presenting the amended engagement said the structure of the financing has become more complex and now anticipates both senior and subordinate debt sold in a public offering, requiring a preliminary and limited offering memorandum to disclose risks to potential purchasers. “So the updated engagement letter would be for a cost of a $115,000,” the presenter said, adding that the fee would be paid from closing costs at bond closing and that a smaller fee would apply if the financing does not close.
Board members asked whether the finance committee had reviewed the engagement; a finance‑committee representative confirmed the committee reviewed financing options and that the town’s financial adviser, UMB, recommended a public market sale because it believed the GID would get better interest rates given the size and complexity of the financing.
At the same meeting staff presented a first reading and set a Dec. 9 public hearing for an ordinance authorizing the issuance and sale of district limited‑tax general obligation bonds, series 2026A (senior) and series 2026B (subordinate). The finance director described the GID’s purpose as reimbursement of developer costs for extraordinary public improvements for Timnath Landings and provided financial detail: total estimated improvements of $14,500,000; the developer has paid roughly $5,000,000 to date; the initial transaction is expected to generate approximately $6,400,000 in net proceeds, with projected par amounts of roughly $4,600,000 for the senior series and $3,400,000 for the subordinate series.
Staff said the financing structure prioritizes the town’s administrative costs and town reimbursement before developer reimbursement. “The town has incurred over $100,000 in administrative costs,” staff said, and staff estimated about $50,000 in annual administrative costs moving forward.
Board members supported the engagement and first reading, and the resolution to hire Butler Snow and the motion to set the public hearing passed by recorded outcomes of 4‑0. UMB Bank staff and bond counsel will be available at the Dec. 9 public hearing to answer questions.
Next steps: the GID will bring the ordinance back for a public hearing and second reading on Dec. 9, 2025; if the district chooses to close the bonds, the stated closing costs will be taken from a closing cost fund created at that time.
