Council approves $6.395 million special-assessment bonds for Trails at Cottonwood Creek PID

The Rowlett City Council closed a public hearing and unanimously approved two related items for the Trails at Cottonwood Creek Public Improvement District (PID) on May 5: adoption of the service and assessment plan for Improvement Areas 2 and 3, and approval of the bond ordinance authorizing issuance of Series 2026 special-assessment revenue bonds sized at $6,395,000.

Michael Kuhn, making the presentation, summarized the project as a master-planned single-family development at the northeast corner of Vinson and Stonewall Road. He said Improvement Area 2 and 3 would finance public infrastructure (roads, water, sewer, drainage, landscaping) to support the planned lots; the underwriter priced the bonds at a TIC of 5.83%.

"So to recoup everything tonight, we're here to hold a public hearing, consider approval of the service assessment plan and levy of assessments, and consider approval of the Series 2026 bonds," Kuhn said. Preston Walhut, the master developer, spoke in favor of the levies and the bond sale.

Council adopted the assessment ordinance and then approved the bond issuance; both votes were recorded as unanimous. Staff said the bond par amount came in slightly below preliminary sizing and will produce a tax-equivalent rate consistent with the development agreement.

Why it matters: The bond issuance funds neighborhood public improvements and shifts the cost to benefited property owners via special assessments. The financing also enables continued build-out of the PID and related developer commitments, including a contribution to a fire station project described in the development agreement amendments.

What's next: With council approval, staff and bond counsel will finalize closing documents and begin the assessment and construction processes described in the adopted service assessment plan.