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Council approves Aransas Oaks PID assessments and $3.45M in bonds to reimburse developer
Summary
The council adopted ordinances approving the service and assessment plan and authorizing issuance and sale of special assessment revenue bonds for the Aransas Oaks Public Improvement District; bond counsel and the underwriter described roughly $6.7M in improvements with $3.45M assessed to Improvement Area No.1 to support bonds.
The Aransas Pass City Council adopted two ordinances authorizing assessments and the issuance of special assessment revenue bonds for the Aransas Oaks Public Improvement District, approving a service and assessment plan and authorizing the sale of bonds to reimburse developer costs.
Chris Guevara of Norton Rose Fulbright, serving as bond counsel, said the overall improvement costs are roughly $6.7 million and that about $3.45 million would be levied against property in Improvement Area No. 1 as assessments to support the bonds. Guevara said city funds would not be used to repay the bonds.
Financial adviser Ryan Cunningham (Samco Capital Markets) reported preliminary pricing results to the council, saying market conditions improved since preliminary estimates and the bonds were purchased by Goldman Sachs Asset Management and the Franklin Fund. Cunningham said the sale produced an average interest rate near 5.92%, better than preliminary estimates run at 6.25%.
Councilmember [place 4 speaker] moved adoption of the assessment and bond ordinances; a second was recognized and the motions carried by voice vote.
The ordinances establish the assessment methodology and create a lien on assessed properties in Improvement Area No. 1 under the Texas Local Government Code. According to bond counsel, reimbursements funded by the bond proceeds will be paid to the developer for the identified roads, landscaping, water, wastewater and drainage improvements in the district.
