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Brickyard Metropolitan District plans roughly $19 million subordinate bond issue
Summary
Town attorney briefed council on a proposed $19 million subordinate general‑obligation limited tax and special revenue bond issuance by the Brickyard Metropolitan District, with an estimated 8.75% interest rate and maturity in 2057; staff certified compliance with the district service plan and answered council questions about subordinate debt implications.
The Town Attorney and district representatives described a proposed subordinate bond financing by the Brickyard Metropolitan District that would generate roughly $19,000,000 to fund public improvements authorized by the district service plan.
"They're going to be issuing subordinate general obligation limited tax and special revenue bonds. We're looking at about a $19,000,000 issue with an estimated interest rate of 8.75% and a final maturity date of 12/15/2057," the town attorney explained. He said the bonds are structured as cash‑flow bonds, with principal and interest payable at maturity from district revenues and a debt service waterfall that prioritizes senior bonds.
Staff noted the district's service plan caps and previously approved senior issuances; with this issuance the district's debt remains within the stated debt limits. A district representative said subordinate bonds are often market‑driven in early development phases and can be refinanced later when assessed values increase and more development occurs.
Council asked whether subordinate bonds would increase mill levies for taxpayers; district representatives said both series of bonds share the same mill levy structure set in the service plan and that, by law, the district cannot exceed the plan cap (50 mills as adjusted). Staff emphasized the liability rests with the district, not the town.
No council vote was required; staff recommended the council receive the informational presentation and ask questions. The town attorney and district representatives will be available for follow‑up questions as negotiations and planning continue.
