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Board authorizes finance director to sign loan extension for Filament apartment project
Summary
The Garland Public Finance board authorized the chief financial officer to execute a second modification allowing Wolf Development to extend refinancing of the Filament building at 4689 Saturn Road; board members were told the $41 million loan carries no city guarantee.
The board of the Garland Public Finance Public Facility Corporation unanimously authorized the chief financial officer to execute a second modification that will allow Wolf Development to refinance and extend the existing loan for the Filament multifamily project.
A staff member described the project’s structure and terms, saying the PFC was created in 2018 under Texas Local Government Code §303 to enable public‑private partnerships for multifamily developments. "They paid us a $300,000 origination fee when they closed on the property, so we have received that," the staff member said, and added that a $300,000 structuring fee will be due at refinance or at 48 months and an asset‑management fee of about $25,000 is paid annually.
The staff member said the property is a 298‑unit, market‑rate, Class A development at 4689 Saturn Road that opened in 2024 and is roughly 75% leased. The owner seeks to push the loan maturity to Feb. 26, 2028 to allow more time to lease up before payoff or refinance. The staff member corrected an earlier figure and stated the loan is about $41,000,000, adding, "There is no risk associated with the city," because the city is not a guarantor and only holds title to the land.
A board member asked whether the acting executive director or another official should execute the documents; city counsel advised authorizing the chief financial officer until an executive director is appointed. After discussion and the chair’s motion, the board voted in favor of authorizing the finance director to sign the second modification. The chair announced the vote was unanimous.
The agreement described by staff includes guaranteed annual payments beginning in year four intended to approximate lost property tax revenue and an option at sale either to continue the PFC arrangement or to sell the PFC’s ownership interest; staff estimated a buyout would be "about $2,000,000." The board did not amend the financing terms and provided authorization for staff to finalize execution of the modification.
