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Council approves Stable PID assessments and $9.17M bond sale to fund infrastructure
Summary
Mansfield approved the service and assessment plan for the Stable Public Improvement District, a reimbursement agreement with the developer, and the sale of $9,165,000 in PID bonds to fund roughly $7.1M of public improvements for a 189‑lot phase 1.
The Mansfield City Council voted Aug. 25 to move forward with a package of actions to enable infrastructure for the Stable Public Improvement District (PID) Phase 1.
City staff presented the service and assessment plan and a reimbursement agreement for Improvement Area No. 1, which covers roughly 189 residential lots in phase 1 and anticipates a full buildout value of about $85 million. The council held the required public hearing before considering the plan and related documents.
Nick Boulash of Hilltop Securities, the city’s financial advisor for the transaction, reported that the bonds were priced that morning: $9,165,000 of special assessment revenue bonds with a final true interest cost of 6.44 percent. After issuance costs, reserves and capitalized interest, the transaction generates approximately $7.1 million in bond proceeds available for the public costs modeled in the service plan; the developer will fund or post additional amounts at closing to cover the balance of estimated public costs.
Boulash emphasized that the bonds are secured only by assessments on benefited property within the PID and do not constitute general‑obligation city debt or require city general‑fund revenues. "These bonds are secured solely and paid solely through assessments generated on the properties within the PID District," he said.
Council approved the service and assessment ordinance, the reimbursement agreement with the developer and the bond ordinance in a sequence of votes; each item passed unanimously (7–0). Staff said financing closing steps include review by the Texas Attorney General next month and reimbursement to the developer from trustee-held bond proceeds only after inspected and accepted improvements are submitted for reimbursement.
The council’s approvals establish the assessment levy and lien process, a trustee structure for bond proceeds and administrative levies to fund ongoing PID administration. The approved schedule and model include a supplemental levy for certain prepayments and an administration levy to pay PID administrator costs.
The action allows the PID developer to proceed with public infrastructure construction and to seek reimbursement per the approved plan and the financing structure.
