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Buda creates Persimmon PID and tax‑increment zone; council adopts preliminary TIRs plan
Summary
Council approved a resolution creating Public Improvement District No. 1 (Persimmon Development) and adopted an ordinance creating a Tax Increment Reinvestment Zone and preliminary TIRs finance plan covering roughly 774 acres with a preliminary maximum PID authorization of $250 million and an estimated $177 million in public improvements.
The City of Buda moved ahead on the Persimmon development this meeting, creating Public Improvement District (PID) No. 1 and adopting a companion Tax Increment Reinvestment Zone (TIRZ) and preliminary TIRs finance plan.
Jeff Howard, representing the landowners, and consultants including Patrick Born of Sundance Analytics and John Snyder of P3 Works presented a multi-step plan: create the PID and TIRZ boundaries (about 774 acres spanning portions of Hays and Travis counties), appoint an initial TIRs board (the recommendation was for the council to serve as the initial board), and later return to council with a final service-and-assessment plan when staff and underwriters prepare the levy and bond issuance. Born said the preliminary PID authorization would establish a maximum public improvement amount of $250 million while the current projection estimates roughly $177 million in public improvements to be dedicated to the city.
Born and Snyder described the financing structure as phased: initial bond issues would target an initial improvement area (about 117 acres) with future improvement areas and bond series to follow. The TIRs term proposed is 45 years to allow for staged PID bond issuances and to keep the parcel-level PID bonds at roughly 30-year terms. The preliminary finance plan projects significant incremental tax revenue over time and showed an estimate of about $266 million in incremental property tax revenues to the city over the TIRs term, with approximately $125 million retained by the city after offsets.
Council opened both public hearings for the PID and TIRZ; there were no speakers. Council adopted the resolution creating PID No. 1 and then adopted the ordinance creating the TIRZ/TIRs on first and final reading; both actions carried on voice votes.
