Aransas Pass council approves tax notes, permits, contracts and budget amendments; several HOT requests approved for reimbursement

Aransas Pass — The City Council on Monday approved a package of financing, permitting and procurement actions, including tax notes to support capital projects, a temporary housing permit for a homeowner under construction, and multiple event- and infrastructure-related approvals.

Debt and PID financing

Council authorized the issuance of $1,375,000 in City of Aransas Pass Tax Notes, Series 2026, to fund capital items listed in the agenda. Financial adviser Andrew Friedman of Samco Capital Markets said the city received six bids on the notes and that Frost Bank offered the winning fixed rate at 3.65%; the sale is expected to close May 5.

Council also advanced two items related to the Aransas Oaks Public Improvement District (PID). Staff presented a cost-determination resolution identifying roughly $6,013,695 in developer-funded authorized improvements and approved distribution of a preliminary limited offering memorandum for PID bonds; council set the public hearing on assessments for April 20.

Permits, contracts and procurement

A public hearing and council vote extended a conditional-use permit for Richard Titus, allowing a recreational vehicle to remain on lots 26–27 of Block 443 (commonly 624 South Reife) as a temporary dwelling and security measure during construction. Planning staff explained that the extension runs through June 30, 2026, and that a new conditional-use application with updated construction and financial documents will be required to continue beyond that date. The motion to approve the three-month renewal carried.

The council approved a multi-line budget amendment for fiscal year 2026 that recognizes nearly $975,000 in Municipal Development District (MDD) funds to support a suite of projects (EDC staffing, shade structures, welcome signage, waterfront restroom and pavilion work, and civic-center repairs), along with internal transfers and one-time realignments across departments.

Procurement approvals included:

- Awarding the Independence Day fireworks contract to Pow Pow Pyro LLC for $23,000 for a 15–20 minute show. - Authorizing an RFP issuance for construction of police and fire station renovations and additions with a pre-bid conference scheduled for May 4 and bids due May 18. - Awarding a contract not to exceed $15,000 to Durell Company LLC for removal and disposal of two obsolete storage tanks at Con Brown Harbor (staff noted bids ranged widely and that contingency funding was available from MDD).

HOT-fund event decisions

Council handled several HOT-fund requests for events and promotions by approving a post-event reimbursement approach (applicant submits receipts and a post-event report) rather than advance funding for some community events. Actions included:

- Feeding Frenzy (podcast) — Council asked the applicant to return post-event with receipts for reimbursement consideration and did not authorize an advance amount. - Blues-for-the-Next-Generation youth camp — Council approved a post-event reimbursement not to exceed $5,000 for advertising upon submission of receipts.

Utilities and leases

Council approved a pro rata water-extension agreement with Justin Guerrero; Guerrero will fund the water-line upgrade and the city will install the line, holding a pro rata credit that can be claimed by later developers within the statutory period.

Open and executive session actions

After executive session on a harbor lease, council approved a Con Brown Harbor lease with M.L. and M&R Real Estate Investments LLC as discussed in closed session and adjourned.

What this means

Taken together, tonight’s actions move forward a suite of capital projects and operations while taking a cautious approach to HOT-fund allocations: the council signaled preference for post-event reimbursement and insisted on contract-level guarantees where HOT funds might be used for large marketing investments.