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Developer seeks new PID bonds for Trails at Cottonwood Creek after cap increase to $20M
Summary
City staff updated council on a proposed reimbursement bond issuance for the Trails at Cottonwood Creek PID; the development agreement was amended in March 2025 raising the PID cap from $11M to $20M, and the developer seeks to fund improvement areas 2 and 3 (new assessments would apply only to new homeowners). Council set a public hearing for May 5 as the next procedural step.
City staff briefed the council on April 6 about an upcoming reimbursement bond issuance for the Trails at Cottonwood Creek public improvement district (PID).
Michael, presenting the plan, described the PID mechanism: the city issues bonds on behalf of the district that are repaid by assessments levied on properties inside the PID; the debt is the PID’s obligation and does not encumber the city’s general debt. Staff said prior bonds were sold in 2021 and that the development agreement was amended in March 2025 to increase the maximum PID cap from $11,000,000 to $20,000,000 to capture additional build‑out value as home prices rose.
Staff noted the developer’s plan would fund improvements (roads, water/sewer, parks, and a fire station contribution) in new improvement areas; staff estimated the developer‑eligible reimbursement for the public safety/fire station piece at roughly $2.1 million. The city’s next steps include adopting a resolution to call a public hearing (to be scheduled May 5) and an amendment to the development agreement to extend allowable bond tenor to 30 years; staff emphasized the PID assessments are applied to new homeowners within the PID and do not affect existing homeowners elsewhere in the city.
Council members asked for clarity on the PID cap, how assessments affect marketability of lots, whether improvements will remain public, and whether HOA responsibilities for common‑area maintenance had changed; staff confirmed completed improvements are dedicated to the city, and said the amended development agreement had shifted some common‑area maintenance to the HOA.
