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>> HI EVERYONE. [LAUGHTER] WE'RE GOING TO CALL THIS WORKSHOP TO
[1. WORKSHOP: to discuss proposed Caldwell County Public Improvement District (PID) Policy]
ORDER ON THE 11TH DAY OF MAY 2021 AT 1:00 PM.COMMISSIONERS, CAN I GET A MOTION TO SKIP THE INVOCATION AND THE PLEDGE?
>> WE HAVE A MOTION. DO WE HAVE A SECOND?
>> WE HAVE A MOTION AND A SECOND.
>> OPPOSE, NONE. MOTION CARRIES.
ANY ANNOUNCEMENTS? ANY CITIZENS COMMENTS?
>> OKAY. IN THAT CASE, WE'LL GO TO ITEM 1 WORKSHOP TO DISCUSS PROPOSED CALDWELL COUNTY PUBLIC IMPROVEMENT DISTRICT OR PID POLICY.
>> SURE. GOOD AFTERNOON JUDGE, COMMISSIONERS.
MY NAME IS STEPHANIE LIBBY AND I'M PARTNER WITH NORTON ROSE FULBRIGHT.
OUR FIRM SERVES AS BOND COUNSEL TO THE COUNTY WHEN THE COUNTY ISSUES PUBLIC SECURITIES.
IN THAT ROLE, WE HAVE ALSO BEEN RETAINED TO WORK WITH THE COUNTY FOR THE PUBLIC IMPROVEMENT DISTRICT AND THE PROPOSED PUBLIC IMPROVEMENT DISTRICT POLICY.
WHAT WE HAVE FIRST TODAY IS JUST A QUICK POWERPOINT PRESENTATION TO GIVE YOU ALL A GENERAL BACKGROUND ON PUBLIC IMPROVEMENT DISTRICTS IN THE STATE OF TEXAS, BENEFITS THAT THEY PROVIDE AND ANY OBLIGATIONS THAT THEY MAY IMPOSE ON THE COUNTY IF YOU CHOOSE TO AVAIL YOURSELF TO THIS ALTERNATIVE REVENUE STREAM OR FINANCING SOURCE.
I'LL WALK THROUGH THE SLIDE PRESENTATION.
I WON'T READ IT VERBATIM, BUT FEEL FREE TO INTERRUPT IF YOU HAVE ANY QUESTIONS OR IF YOU FEEL THERE'S ANYTHING YOU'D LIKE TO HAVE A LITTLE BIT OF ADDITIONAL INFORMATION ON, I'M HAPPY TO GO INTO GREATER DEPTH.
PUBLIC IMPROVEMENT DISTRICTS ARE GOVERNED BY CHAPTER 372 OF THE TEXAS LOCAL GOVERNMENT CODE.
IT GRANTS THE COUNTY AUTHORITY TO CREATE A PUBLIC IMPROVEMENT DISTRICT WITHIN ITS JURISDICTION.
THE PURPOSE OF A PUBLIC IMPROVEMENT DISTRICT IS TO PROVIDE SPECIAL BENEFITS WITHIN A DESIGNATED AREA IN THE COUNTY.
PUBLIC IMPROVEMENT DISTRICTS CAN EITHER BE USED ON A PAY-AS-YOU-GO BASIS, AND THAT ASSESSMENTS ARE COLLECTED, AND THEN AS THEY AGGREGATE, THEY CAN BE USED TO PAY FOR PROJECT COST, OR THE ASSESSMENTS CAN BE BONDED AGAINST.
SO YOU CAN ISSUE PUBLIC IMPROVEMENT BONDS THAT ARE SECURED BY THOSE LAND-BASED ASSESSMENTS.
THE COUNTY WOULD APPROVE AND LEVY ANY ASSESSMENTS WITHIN THE LAND ON THE PID.
ASSESSMENTS ARE SUBORDINATE TO PROPERTY TAXES, BUT SENIOR TO ANY OTHER LANES THAT ARE CURRENTLY ON THE LAND.
ASSESSMENTS CAN BE PAID IN ANNUAL INSTALLMENTS OR A LAND OWNER CAN CHOOSE TO PAY THE ASSESSMENTS AT ANY TIME.
THEN WHEN YOU COME UP WITH THE ASSESSMENT AMOUNT, THE ASSESSMENT AMOUNT IS ACTUALLY A CUMULATIVE AMOUNT BASED ON COST OF THE IMPROVEMENTS, ADMINISTRATIVE COSTS ASSOCIATED WITH THE DISTRICT OF BONDS ARE ISSUED, INTEREST COSTS ASSOCIATED WITH THOSE BONDS ARE BUILT-IN TO THAT ASSESSMENT.
THE ASSESSMENTS ARE A MIXTURE OF THREE OR FOUR DIFFERENT AMOUNTS THAT COME IN TO DETERMINE WHAT THE TRUE ASSESSMENT ON THE LAND WOULD BE.
ONCE AGAIN, IF PID BONDS ARE ISSUED, PID BONDS ARE SECURED BY ASSESSMENTS ON THE LAND, THE COUNTY'S GEO TAXING POWER IS NOT LEVIED TO PID BONDS AND THE COUNTY DOES NOT GUARANTEE PID BONDS IN AND OF THEMSELVES.
THIS NEXT SLIDE JUST GIVES YOU A GENERAL IDEA OF THE AUTHORIZED IMPROVEMENTS UNDER 372.
I SAY MORE OFTEN THAN NOT, THE MOST COMMON IMPROVEMENTS WOULD BE STREETS AND SIDEWALKS, WATER, SEWER, PARKS, AND OPEN SPACE IMPROVEMENTS.
WE DO HAVE SOME PID BONDS THAT GO BEYOND THOSE BASED ON WHATEVER THE NEEDS OF THE DISTRICT ARE.
BUT MORE OFTEN THAN NOT, THE MOST COMMON IMPROVEMENTS THAT WE SEE ARE THOSE CORE INFRASTRUCTURE IMPROVEMENTS.
SHOULD THE COUNTY CHOOSE TO CREATE A PUBLIC IMPROVEMENT DISTRICT, THIS SLIDE WOULD SHOW WHAT THE ONGOING DUTIES OF THE COUNTY WOULD BE AS IT RELATES TO THAT DISTRICT.
THE COUNTY WOULD BE RESPONSIBLE FOR CREATING THE DISTRICT, LEVYING THE ASSESSMENTS, ISSUING THE DEBTS, COLLECTING ASSESSMENTS ON AN ANNUAL BASIS.
IN CONNECTION WITH BOTH IDENTIFICATION OF THE PROJECTS AND THE DETERMINATION OF THE AMOUNTS OF THE ASSESSMENT, PUBLIC IMPROVEMENT DISTRICTS HAVE A SERVICE AND ASSESSMENT PLAN, AND IT WOULD BE AN OBLIGATION OF THE COUNTY TO UPDATE THAT SERVICE AND ASSESSMENT PLAN ON AN ANNUAL BASIS.
IF PID BOND IS ISSUED, THEN THE COUNTY WOULD HAVE CONTINUING DISCLOSURE OBLIGATIONS ASSOCIATED WITH THOSE PID BONDS.
WHEN THE COUNTY ISSUES IT'S REGULAR PUBLIC SECURITIES, THE COUNTY ALSO UNDERTAKES SIMILAR OBLIGATIONS WITH RESPECT TO THOSE SECURITIES.
THEN IN THE EVENT OF NON-PAYMENT FOR ASSESSMENTS, PROPERTY WOULD BE SUBJECT TO FORECLOSURE IN THE SAME WAY THAT IT WOULD BE FOR A TAX SALE IN THE EVENT OF NON-PAYMENT OF A VALOREM TAXES.
THIS SLIDE COVERS THE BENEFITS ASSOCIATED WITH THE PUBLIC IMPROVEMENT DISTRICT FOR THE COUNTY.
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ONE OF THE BENEFITS OF A PUBLIC IMPROVEMENT DISTRICT, IS IT OFFERS THE COUNTY A WAY TO INCENTIVIZE A HIGHER QUALITY OF DEVELOPMENT BUT FOR THE PID MAY NOT OCCUR.COSTS OF ANY PUBLIC IMPROVEMENTS FOR DEVELOPMENT IS BORNE BY THE RESIDENTS WITHIN THE DEVELOPMENT ITSELF.
CURRENT COUNTY RESIDENTS OR COUNTY RESIDENTS AS OF TODAY, DON'T HAVE TO PAY FOR DEVELOPMENT FOR NEW RESIDENTS COMING IN.
THAT DEVELOPMENT PAYS FOR AND SUPPORTS ITSELF WITHOUT BURDENING THE REST OF THE COUNTY.
THE COUNTY ALSO HAS CONTROL OR SOME LEVEL OF CONTROL OVER THE DEVELOPMENT.
THIS IS A BIG INCENTIVE FOR COUNTIES SINCE STATE LAW PROVIDES VERY LITTLE DEVELOPMENTAL CONTROL FOR COUNTIES AS IT RELATES TO LAND USE.
WITH EACH PUBLIC IMPROVEMENT DISTRICT, THE COUNTY COULD ENTER INTO A DEVELOPMENT AGREEMENT WITH ANY PROPOSED DEVELOPER THAT WOULD PROVIDE THE FRAMEWORK FOR DEVELOPMENT THAT WOULD GO WITHIN THE AREA AND THAT CAN BE ANYTHING FROM WATER QUALITY TO STREETS LEVEL OF DEVELOPMENT, ANY SITE BUILDING REQUIREMENTS, CONSTRUCTION REQUIREMENTS, ANYTHING ALONG THOSE LINES CAN GET INCORPORATED INTO THAT AGREEMENT.
THE PID ITSELF IS GENERALLY DESIGNED TO BE SELF-SUSTAINING.
IN ADDITION TO CREATING OR PAYING FOR ANY IMPROVEMENTS THAT ARE FUNDED BY THE PID, THE PID IS ALSO DESIGNED TO PAY FOR IT'S ANNUAL O&M EXPENSES, AND THEN ALSO ANY ADDITIONAL ADMINISTRATIVE EXPENSES THAT THE COUNTY WOULD INCUR IN RELATION TO THAT ADMINISTRATION.
THAT ADMINISTRATION CAN BE DONE INTERNALLY BY THE COUNTY OR THE COUNTY CAN CONTRACT WITH A THIRD PARTY TO DO THAT ANNUAL ADMINISTRATION.
ONCE AGAIN, ALL OF THOSE COSTS WOULD BE PAID FOR BY ANNUAL INSTALLMENTS OF THOSE ASSESSMENTS.
THE PID ALSO CAN ACCELERATE A DEVELOPMENT SCHEDULE AND JUST PROVIDE FOR A VALUE ON THE GROUND A LITTLE BIT QUICKER THAN WHAT MAY OCCUR OTHERWISE, AND THAT BENEFITS THE COUNTY'S TAXABLE ASSESSED VALUES.
A SLIDE ASSOCIATED WITH THINGS THAT YOU DO HAVE TO BE AWARE OF BECAUSE ONCE AGAIN, THE UNDERTAKING, IT IS AN ONGOING OBLIGATION THAT THE COUNTY WOULD HAVE ASSOCIATED WITH THE PID BONDS, AND SPECIFICALLY IF PID BONDS ARE ISSUED.
ANYTIME YOU HAVE VALOREM OR A TAX-EXEMPT BOND ISSUANCE, YOU HAVE IRS REGULATIONS ASSOCIATED WITH THESE.
THOSE BOND PROCEEDS IN ANY REPORTING REQUIREMENT.
IF THE BONDS ARE PUBLICLY OFFERED, YOU WILL HAVE THE CONTINUING DISCLOSURE OBLIGATIONS THAT I REFERENCED EARLIER.
THEN THE ANNUAL PID IMPLEMENTATION, ADMINISTRATION, COLLECTION, AND DEBT PAYMENTS ASSOCIATED WITH IT.
THE COUNTY WOULD BE REQUIRED TO INITIATE ANY FORECLOSURE PROCEDURES IN THE EVENT OF NON-PAYMENT.
YOU DO HAVE A ONGOING PART OF THE ADMINISTRATION OF THE PID.
YOU CREATE THE PID THIS YEAR IF YOU ISSUE PID BONDS, THOSE PID BONDS ARE OUTSTANDING FOR 30 YEARS.
ANYTIME IN THAT 30 YEAR TIME PERIOD, YOU OR WHOMEVER IS SITTING ON THE COURT AT THAT TIME MORE LIKELY THAN NOT WOULD BE FEELING PHONE CALLS FROM A CITIZEN ASKING ABOUT THIS LINE ITEM ON THEIR TAX BILL AND WHAT IS THIS ASSESSMENT INTENDED TO PAY AND WHY I'M I PAYING THIS, AND SO AND SO ACROSS TOWN DOESN'T PAY IT? THERE ARE THOSE POLITICAL QUESTIONS THAT COME UP AND ASSOCIATED WITH PID.
THE PIDS ARE SUBJECT TO CONSTRUCTION MARKET AND DEVELOPMENT RISK.
YOU'RE DOING A LAND-BASED FINANCING.
IF DEVELOPMENT DOES NOT OCCUR AS EXPECTED, THEN THERE IS RISK ASSOCIATED WITH DEFAULTS ON THOSE BONDS.
WHEN THEY MOVE THROUGH THE PID POLICY, YOU'LL SEE THAT WE'VE TRIED TO CREATE A STRUCTURE THAT MITIGATES THOSE RISKS.
BUT WITH ANY RISK, THEY CANNOT BE MITIGATED IN THEIR ENTIRETY.
THE COUNTY SHOULD BE SENSITIVE TO ANY OVERLAPPING DEBT RATIOS ASSOCIATED WITH THE PID ASSESSMENT.
I CAN TELL YOU FROM EXPERIENCE THAT THE DEVELOPERS THEMSELVES ARE SENSITIVE TO OVERLAPPING DEBT RATIOS BECAUSE IT AFFECTS THE MARKETABILITY OF THEIR PROPERTY.
IF A DEVELOPMENT HAS OVERLAPPING DEBT RATIOS THAT'S OUT OF WORK, PEOPLE WILL JUST LOOK FOR HOMES AND OTHER DEVELOPMENTS IF THAT TAX RATIO GETS TOO HIGH.
ESTABLISHING THE PID DOES REQUIRE AN ONGOING RELATIONSHIP WITH THE DEVELOPER AND ANY SUBSEQUENT OWNERS OF THE PROPERTY.
CREATING A PID WILL CREATE EXPECTATIONS
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ASSOCIATED WITH OTHER DEVELOPERS AND OTHER PIDS IN THE COMMUNITY.ONCE THE COUNTY DOES, A, ADOPT THE POLICY, OR B, CREATE THE FIRST PID, DEVELOPERS DO SEE THAT AS AN OPEN DOOR TO COME IN AND PITCH THEIR OWN PROPOSALS.
ONCE AGAIN, THROUGH THE PID POLICY, WE'VE WORKED TO SET A FRAMEWORK SO THAT THAT POLICY CAN BE THAT INITIAL COMMUNICATION OUT TO THE DEVELOPMENT COMMUNITY SO THAT EXPECTATIONS OF THE COUNTY ARE CLEAR.
FINALLY, WHEN SPECIAL OBLIGATIONS OR BONDS OF THE COUNTY ARE ISSUED, THE COUNTY IS THE ENTITY THAT'S ACTUALLY ISSUING THAT DEBT SIGNING DOCUMENTS, RESPONDING.
IT'S A SPECIAL OBLIGATION PAYABLE FROM THE ASSESSMENTS, BUT IT IS AN OBLIGATION OF THE COUNTY.
WITH THAT, I'LL PAUSE AND SEE IF ANYONE HAS ANY QUESTIONS JUST ABOUT THE GENERAL OVERVIEW.
>> OKAY. [NOISE] I'LL JUST CLOSE IT.
DO THEY ALL HAVE A COPY OF THE POLICY? [NOISE]
>> NEXT, I'LL DEFER TO YOU ALL, BUT WE DO HAVE A DRAFT OF A PROPOSED PID POLICY FOR CALDWELL COUNTY.
A GENERAL OVERVIEW OF THE PID POLICY ITSELF IS IT'S A MIXTURE OF BOTH STATUTORY REQUIREMENTS RELATED TO PUBLIC IMPROVEMENT DISTRICTS IN TEXAS, AND SO THE REQUIREMENTS THAT ARE FOUND IN CHAPTER 372 OF THE LOCAL GOVERNMENT CODE HAVE BEEN INCORPORATED IN HERE, BUT WE'VE ALSO WORKED TO FINE-TUNE SOME OF THOSE REQUIREMENTS SO THAT ONCE AGAIN, THIS PID POLICY IS DESIGNED TO SPEAK TO THE DEVELOPMENT COMMUNITY TO LET THEM KNOW THAT IF THEY HAVE A PROPOSED PUBLIC IMPROVEMENT DISTRICT IN CALDWELL COUNTY, THESE WOULD BE THE EXPECTATIONS OF THE COUNTY IN RELATION TO THAT PUBLIC IMPROVEMENT DISTRICT.
I GUESS I CAN DEFER TO YOU ALL AT THIS POINT IF YOU WANT TO WALK THROUGH THE POLICY.
I THINK IT'D PROBABLY BE A LITTLE BIT EASIER MAYBE IF WE WALK THROUGH THE COMMUNITY BENEFIT SECTION [OVERLAPPING] OF THE POLICY BECAUSE THAT'S A LITTLE BIT MORE NARROWLY TAILORED TO THE COUNTY ITSELF.
BUT ONCE AGAIN, THE FIRST PART OF THE POLICY ITSELF LAYS OUT THE STATUTORY FRAMEWORK ASSOCIATED WITH RECEIPT OF A PETITION, WHO CAN FINE THE PETITION, AND WHAT THE COUNTY'S ACTIONS WILL BE WHEN THAT PETITION IS RECEIVED.
WHEN WE GET TO THE COMMUNITY BENEFIT SECTION, THIS IS THE PART OF THE POLICY THAT WOULD SPEAK TO THE DEVELOPMENT COMMUNITY TO BASICALLY SAY, IF YOU PROPOSE A PUBLIC IMPROVEMENT DISTRICT WITHIN CALDWELL COUNTY, THIS IS THE EXPECTATIONS ASSOCIATED WITH COMMUNITY BENEFIT THAT WE WOULD LIKE FOR THAT PID TO PROVIDE.
THE MORE COMMUNITY BENEFIT YOU PROVIDE IN YOUR PUBLIC IMPROVEMENT DISTRICT, THE MORE LIKELY IT IS THAT THE PETITION WOULD BE RECEIVED FAVORABLY BY THE COURT.
THIS IS JUST A LIST OF DIFFERENT THINGS THAT WE THOUGHT WOULD BE HELPFUL TO THE COUNTY, TO THE EXTENT THAT THERE ARE ANY COMMUNITY BENEFITS THAT YOU ALL THINK OF IN ADDITION TO THIS LIST.
THIS LIST IS NOT STATUTORILY CONTROLLED, IT IS COMPLETELY WITHIN THE DISCRETION OF THE COMMISSIONERS COURT, SO THINGS CAN BE ADDED OR REMOVED FROM THE LIST.
BUT JUST BRIEFLY, THE COMMUNITY BENEFITS THAT ARE CURRENTLY IDENTIFIED INCLUDE ECONOMIC DEVELOPMENT BENEFITS THAT GO BEYOND THE INITIAL CONSTRUCTION ASSOCIATED WITH ANY DEVELOPMENT.
IMPROVEMENTS TO RIGHT-OF-WAYS, ACCESSIBILITY AND AFFORDABILITY OF BROADBAND INTERNET SERVICE WITHIN THE COUNTY, INNOVATED OR EXCEPTIONAL TRANSPORTATION IMPROVEMENTS, INCREASE OR ENHANCE MASS TRANSIT CARPOOLING, OR OTHER TRANSPORTATION OPTIONS, IMPROVED PUBLIC EDUCATION OR HEALTH PROGRAMS, ANYTHING THAT WOULD MEET COMMUNITY NEEDS BEYOND THE PID DEVELOPMENT ITSELF, ANYTHING THAT MEETS OR EXCEEDS CURRENT DEVELOPMENT REQUIREMENTS, ENHANCE ARCHITECTURAL STANDARDS, LANDSCAPING, [NOISE] LIGHTING, PRESERVATION OF DARK SKIES, INCREASE RECREATION AND OPEN SPACE,
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PRESERVE ANY NATURAL AMENITIES, ENVIRONMENTAL AMENITIES, ADDITIONAL STREAM BUFFERS THAT WOULD PROTECT WATER QUALITY WITHIN THE COUNTY, PRESERVATION OF HISTORICAL STRUCTURES, AND ANY ADVANCED OR MASTER REGIONAL PLANS ASSOCIATED WITH TRANSPORTATION, PARKS, OPEN SPACE, ANY OVERARCHING PLAN THAT THE COUNTY IS MOVING TOWARDS.ONCE AGAIN, NOT ALL COMMUNITY BENEFITS WOULD HAVE TO BE RECEIVED ASSOCIATED WITH THE PID, BUT THE MORE COMMUNITY BENEFITS THERE ARE, THE MORE FAVORABLE THE PETITION ITSELF WOULD BE RECEIVED BY THE COUNTY.
IN ADDITION TO COMMUNITY BENEFIT, THERE IS ALSO A COMMUNITY BENEFIT FEE THAT IS BUILT INTO THE PROPOSAL.
SORRY, I'M GOING TO FLIP THERE AND SEE IF I CAN FIND IT REAL FAST.
BUT THERE'S A GENERAL IDEA THAT OUT OF THOSE COMMUNITY BENEFITS, YOU HAVE THREE OR FOUR THAT YOU CAN IDENTIFY AS PRIORITY PROJECTS, AND THEN TO THE EXTENT THAT ONE OF THOSE PRIORITY PROJECTS IS NOT PROVIDED BY THE FEE OR BY THE PID, THE DEVELOPER CAN CHOOSE TO PAY A FEE IN LIEU OF THE PROVISION OF THAT BENEFIT.
THE COMMUNITY BENEFIT FEE ITSELF CANNOT BE PAID BY THE PID OR FROM PID BOND PROCEEDS, BUT WHAT WE DO IS WE DO USE THE NET AMOUNT OF PID BOND PROCEEDS TO PROVIDE A FORMULA.
THE MOST STANDARD FORMULA THAT'S IN THE INDUSTRY RIGHT NOW IS 10 PERCENT OF NET BOND PROCEEDS THAT THE DEVELOPER RECEIVES FROM A BOND ISSUANCE.
HE WOULD MAKE A PAYMENT TO THE COUNTY, AND THEN THAT AMOUNT COULD BE EARMARKED BY THE COUNTY TO BE USED FOR ANY OTHER COUNTY AUTHORIZED PURPOSE, PREFERABLY OR IDEALLY FOR ONE OF THE FOUR PREFERRED COMMUNITY BENEFIT IMPROVEMENTS THAT THE COUNTY WOULD LIKE TO ENCOURAGE.
ANY PIDS THAT ARE CREATED WITHIN CITY LIMITS OR ATJS DO REQUIRE NOTICE TO THE CITY TO BE PROVIDED.
CONSENT DOES NOT HAVE TO BE EXPRESSLY GRANTED, BUT IF THE CITY DOES OBJECT, THAT WOULD PRECLUDE THIS COUNTY FROM MOVING FORWARD WITH THAT PID.
IF THERE ARE ANY PID PROPOSALS THAT COME BEFORE THE COURT THAT ARE EITHER WITHIN CITY LIMITS OR ATJS, THAT WOULD BE IMPORTANT AND OUR FIRM WOULD TAKE THE LEAD IN COMMUNICATING WITH THE SAID AGENTS JUST TO MAKE SURE THAT THE COUNTY AND CITY ARE WORKING ON THE SAME PAGE ASSOCIATED WITH THAT DEVELOPMENT.
[NOISE] THE NEXT SECTION IS JUST PETITION REQUIREMENTS.
THAT'S STRICTLY STATUTORY REQUIREMENTS SET FORTH.
ONCE AGAIN, THIS IS JUST ON TO BE A CUMULATIVE COMMUNICATION OUT FOR THE DEVELOPMENT, A ONE-STOP-SHOP SO THEY UNDERSTAND EVERYTHING THAT'S REQUIRED ASSOCIATED WITH THE PUBLIC IMPROVEMENT DISTRICT.
THE NEXT SECTION WALKS THROUGH PID ADMINISTRATION.
AS I MENTIONED DURING THE EARLIER POWERPOINT PRESENTATION, ADMINISTRATION OF THE PID IS AN ONGOING OBLIGATION AND IT DOES HAVE TO BE DONE ON AN ANNUAL BASIS BY THE COUNTY, BOTH WITH THE UPDATE TO THE SERVICE AND ASSESSMENT PLAN, AND THEN THE COLLECTION OF THE ANNUAL INSTALLMENTS.
MORE OFTEN THAN NOT, MOST LOCAL GOVERNMENTS CHOOSE TO USE A PID ADMINISTRATOR TO DO THAT ANNUAL ADMINISTRATION.
ONCE AGAIN, THE COST OF THAT ADMINISTRATION CAN BE BUILT INTO THE ASSESSMENTS AND THE ANNUAL INSTALLMENTS.
AS THOSE MONIES ARE COLLECTED, THEY'RE AVAILABLE TO PAY FOR THAT THIRD PARTY.
THE THIRD PARTY WOULD WORK WITH THE COUNTY AUDITOR'S OFFICE AND THE COUNTY [OVERLAPPING] PLAN.
>> YEAH. THE PID ADMINISTRATOR WORKS, I GUESS, WITH THE APPROPRIATE COUNTY DEPARTMENTS TO MAKE SURE THAT TAX BILLS ARE SENT OUT TIMELY, TO MAKE SURE THAT ASSESSMENTS ARE TIMELY DONE.
WHEN IT'S TIME FOR THIS SERVICE AND ASSESSMENT PLAN TO COME BEFORE THE COURT FOR REVIEW AND APPROVAL ON AN ANNUAL BASIS, THEY'LL PREPARE THAT DOCUMENT.
ALL THE DOCUMENTS THAT COME BEFORE THE COUNTY ALSO COME BOTH BEFORE OUR FIRM, AND THEN THEY GO BEFORE OUR SPECIALIZED PUBLIC FINANCE, WHICH IS THE COUNTY'S FINANCIAL ADVISOR.
JUST LIKE IN A BOND ISSUANCE, ALL THE DOCUMENTS THAT COME BEFORE THE COUNTY ARE PRESENTED TO THE COUNTY'S CONSULTANTS AND PROFESSIONALS FOR REVIEW AND COMMENT, AND SO WHAT YOU ALL GET IS THE FINAL VERSION THAT'S READY TO GO.
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THE NEXT SECTION COVERS BOND SIZE LIMITATIONS.THEN ONCE AGAIN, WHAT WE HAVE IN THIS POLICY IS WHAT THE CURRENT MARKET STANDARD IS, WHAT WE SAY WHEN BONDS ARE ISSUED.
MORE OFTEN THAN NOT, THE COUNTY HAS ULTIMATE DISCRETION WHEN SETTING THESE BONDS SIZE LIMITATIONS, BUT THE VALUE TO BOND RATIO IS GENERALLY 3:1.
IF YOU HAVE 3:1, THEN YOU KNOW THAT YOUR PID BONDS ARE MARKETABLE, AND WHEN YOU GO INTO THAT PUBLIC MARKET TO SELL THE BONDS, THERE WILL BE A MARKET THERE.
THERE ARE PID BONDS THAT ARE ISSUED AT BELOW A 3:1 RATIO.
YOU MAY PAY A HIGHER INTEREST RATE.
YOU MAY NOT PAY A HIGHER INTEREST RATE IF IT'S A QUALITY DEVELOPMENT IN A FAST GROWTH AREA THAT THE INVESTORS HAVE A LOT OF FAITH IN AT THE MOMENT.
BUT ONCE AGAIN, THIS IS JUST MARKET STANDARD.
IT'S WITHIN THE DISCRETION OF THE COUNTY TO CHANGE ALL THIS.
THE MAXIMUM ANNUAL PERMITTED INCREASE IN ANNUAL ASSESSMENT INSTALLMENTS, WE'VE PROVIDED THAT IN THE PID POLICY AT TWO PERCENT.
WHAT THAT IS, IS WHEN PID ASSESSMENTS THEMSELVES ARE LEVIED, THEY'RE NOT LEVIED AT A TAX RATE, BUT THEY DO USE A TAX RATE FORMULA TO TRY AND DETERMINE WHAT THAT ASSESSMENT WOULD BE.
ONCE AGAIN, TO MANAGE THE OVERLAPPING DEBT RATIOS WITHIN THE AREA.
THEN YOU CAN PROVIDE FOR SOME ESCALATION OF THOSE ANNUAL INSTALLMENTS OVER THE PERIOD OF TIME THAT YOUR BONDS ARE GOING TO BE OUTSTANDING.
WHAT WE SAY AND WHAT WE THINK IS REASONABLE IS A TWO PERCENT ESCALATION AND THOSE ANNUAL INSTALLMENTS.
CAPITALIZE INTERESTS FOR ANY BOND ISSUANCE, WE'VE SET THAT AT THREE YEARS.
ONCE AGAIN, THAT'S GOING TO BE KEPT AT STATE LAW.
STATE LAW ALLOWS FOR CONSTRUCTION PLUS TWO YEARS, SO THREE YEARS IS A GOOD SAFEGUARD FOR THAT.
MAXIMUM MATURITY FOR ANY SERIES OF BONDS, WE'VE SET THAT AT 30 YEARS.
THAT'S PRETTY MUCH MARKET STANDARD.
STATE LAW ALLOW YOU TO GO OUT 40 YEARS, BUT FROM A FINANCIAL MARKET PERSPECTIVE, THE INVESTORS REALLY PREFER A 30-YEAR-OLD LESS MATURITY.
DO I HAVE ANY QUESTIONS YET? YOU GUYS GOOD?
FINANCING CRITERIA. ONCE AGAIN, SOME OF THIS IS STATE LAW, SOME OF THIS IS WITHIN THE COUNTY'S DISCRETION.
I'LL CALL YOUR ATTENTION TO NUMBER 1 JUST BECAUSE THIS IS, INDISCRETION OR A DISCRETIONARY STANDARD.
WITH PID BOND ISSUES, WE SPEAK IN TERMS OF TWO DIFFERENT TYPES OF ISSUANCES.
PID BONDS CAN EITHER BE ISSUED AS CONSTRUCTION BONDS.
THAT'S THE PID BONDS ARE ISSUED AND THE BOND PROCEEDS THEMSELVES, SO YOU'RE USED TO CONSTRUCT THE IMPROVEMENTS IN THE GROUND.
OR PID BONDS CAN BE ISSUED ON A REIMBURSEMENT BASIS.
IF PID BONDS ARE ISSUED ON A REIMBURSEMENT BASIS, THEN THE COUNTY WOULD LEVY PUBLIC IMPROVEMENT OR PID ASSESSMENTS, ENTER INTO A REIMBURSEMENT AGREEMENT WITH THE DEVELOPER, WHERE THE DEVELOPER, WHERE THE COUNTY WOULD IN ESSENCE AGREE TO ACQUIRE THOSE IMPROVEMENTS FROM THE DEVELOPER AFTER THEY'RE BUILT.
THEN ONCE THE IMPROVEMENTS ARE ON THE GROUND, THEN PID BONDS COULD BE ISSUED TO ACQUIRE THOSE IMPROVEMENTS FROM THE DEVELOPER AND PAY THE DEVELOPER.
BUT WHEN YOU DO BONDS ON A REIMBURSEMENT BASIS, YOU HAVE VALUE ON THE GROUND AND YOU HAVE DEVELOPMENT, THAT'S ALREADY OCCURRED.
IT'S ONE WAY TO MANAGE SOME OF THE CONSTRUCTION RISKS THAT WE TALKED ABOUT EARLIER.
FOR THIS PID POLICY, WE'VE ALLOWED FOR BONDS TO BE EITHER ISSUED ON A CONSTRUCTION OR REIMBURSEMENT BASIS.
THAT'S NOT TO SAY THAT EVERY PID BOND ISSUANCE WOULD HAVE TO BE DONE ON A CONSTRUCTION BASIS, THE COUNTY COMMISSIONERS COURT COULD MAKE THAT DETERMINATION, ON A DEVELOPMENT THAT BUY DEVELOPMENT STANDARD.
IF THERE WAS A DEVELOPMENT THAT CAME IN, THAT YOU FELT LIKE REALLY SHOULD ONLY BE DONE ON A REIMBURSEMENT BASIS, WE WOULD BE ABLE TO GO TO THE DEVELOPER AT THAT TIME AND SAY THAT THE COUNTY WAS ONLY ISSUED, OR ONLY INTERESTED IN DOING A PID FOR THIS DEVELOPMENT, IF THE BONDS WOULD BE DONE ON A REIMBURSEMENT BASIS.
GOING BACK TO WHAT I MENTIONED ON THE ORIGINAL PRESENTATION, THE BONDS ARE NOT BACKED BY THE GENERAL CREDIT OF THE COUNTY, THE COUNTY DOES NOT GUARANTEE THE BONDS.
THE BONDS THEMSELVES ARE ONLY PAID FROM THE SPECIAL ASSESSMENTS THAT ARE LEVIED ON THE LAND.
BECAUSE WE HAVE SEEN A COUPLE OF INSTANCES IN TEXAS, PUBLIC IMPROVEMENT DISTRICTS ARE NOT DEVELOPING AS THEY WERE ORIGINALLY ENVISIONED.
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BUT WE REALLY HAVEN'T SEEN PID BONDS THEMSELVES TO VAULTING FOR PIDS AND LAND DEVELOPMENT IN GENERAL.IN ADDITION TO THE PID FINANCING, THE DEVELOPER MORE OFTEN THAN NOT, WILL ALSO HAVE PRIVATE FINANCING ASSOCIATED WITH THE DEVELOPMENT, AND SO THEY'LL HAVE A BANK MORTGAGE ON THAT PROPERTY.
GOING BACK TO THE ORIGINAL PRESENTATION, THE BANK'S MORTGAGE IS SUBORDINATE TO THE PID ASSESSMENTS.
IF THERE'S A DEFAULT ON THE PID ASSESSMENTS, THERE'S ALSO GOING TO BE A DEFAULT ON THE BANK LOAN.
THE BANK WILL MORE OFTEN THAN NOT STEP IN AND PAY THOSE PID ASSESSMENTS, TO PREVENT THE TAX SALE BECAUSE THEY WANT TO PRESERVE THEIR LANE ON THE LAND.
IN THE INSTANCES IN WHICH DEVELOPMENT DOESN'T OCCUR AS ANTICIPATED, IT IS RARE BUT IT DOES OCCUR, YOU'LL HAVE THE BANKS STEP IN, IN ESSENCE PAY THE ASSESSMENTS, FORECLOSE ON THEIR LOAN, TAKE OVER THE LAND AND BRING A NEW DEVELOPER IN.
FROM THE COUNTY'S PERSPECTIVE, THE COUNTY'S PIDS DON'T HAVE A DEFAULT AND DON'T MISS ANY PAYMENTS.
I THINK THAT I'VE HIT MOST OF THE HIGH POINTS.
I DON'T KNOW IF THERE'S ANYTHING IN THE POLICY ITSELF THAT YOU GUYS HAVE SPECIFIC QUESTIONS ON OR ANY SECTION THAT I DIDN'T TOUCH ON, THAT YOU'D LIKE FOR ME TO TOUCH ON A LITTLE BIT MORE.
>> I'VE GOT A COUPLE OF QUESTIONS, NOT NECESSARILY RELATED TO THE POLICY, BUT JUST PIDS IN GENERAL.
>> I GUESS. WHEN I FIRST BECAME FAMILIAR WITH PIDS, WE WERE USING THEM IN THE DOWNTOWNS, MOSTLY FOR DOWNTOWN IMPROVEMENTS.
THAT WAS PROBABLY 30 YEARS AGO, I GUESS.
BECAUSE YOU HAD A COMMONLY DEVELOPED AREA, AN URBAN CORE, THE ASSESSMENT WAS BASED OFF A LINEAR FOOTAGE, USUALLY ALONG THE STREET.
THERE WAS A COMMON RATE THAT WAS APPLIED AND THERE WERE MULTIPLE PEOPLE PAYING THAT ASSESSMENT.
IT WASN'T JUST ONE DEVELOPER THAT YOU WERE DEALING WITH, IT WAS MULTIPLE PEOPLE, SO THERE WERE DEFAULTS SOMETIMES, BUT YOU WERE DEALING WITH SO MANY PEOPLE THAT THERE WAS STILL A RELIABLE INCOME THAT WAS THERE TO PAY THE DEBT SERVICE.
NOW I'M HEARING MORE AND MORE OF PIDS BEING USED IN THESE GREENFIELD SITUATIONS, WHERE YOU'RE DEALING WITH A SINGLE DEVELOPER.
THERE'S A LONG-TERM GOAL TO SELL PROPERTIES TO MULTIPLE FOLKS, BUT YOU STILL GOT ONE DEVELOPER YOU'RE INITIALLY WORKING WITH.
I GUESS A COUPLE OF QUESTIONS RELATED TO THAT, IS THERE ANY HIGHER RISK WHEN YOU'RE DEALING WITH A GREENFIELD SITUATION VERSUS THE OLD DOWNTOWN MULTI-OWNER SITUATION? I THINK YOU TOUCHED ON IT, BUT THE COUNTY'S RESPONSIBILITY, IF YOU HAD A DEFAULT DEALING WITH THAT SINGLE TYPE OF DEVELOPER SITUATION.
>> SURE. FOR ALL THE GENERAL PUBLIC IMPROVEMENT DISTRICTS THAT WE'RE SEEING RIGHT NOW IN TEXAS, THEY'RE PRIMARILY FOCUSED FOR EITHER MASTER PLAN COMMUNITIES, RESIDENTIAL DEVELOPMENTS, OR MIXED, COMMERCIAL, AND RESIDENTIAL, AND SO YOU ARE INITIALLY WORKING WITH A SINGLE DEVELOPER.
THEN WHEN WE DO THE BOND ISSUANCE JUST LIKE THE COUNTY WOULD HAVE CONTINUING DISCLOSURE OBLIGATIONS ASSOCIATED WITH THE BONDS, SO DOES THAT DEVELOPER.
BECAUSE THAT DEVELOPER IS WHAT WE CALL AN OBLIGATED PERSON, BECAUSE THEY OWE SO MUCH OF THOSE ASSESSMENTS, THAT THEY ARE PRIMARILY RESPONSIBLE FOR THE FINANCIAL VIABILITY OF THOSE BONDS.
THERE ARE METRICS THAT ARE SET FORTH AND THE DOCUMENTS THAT DETERMINE HOW LONG THAT DEVELOPER HAS TO CONTINUE TO PROVIDE FINANCIAL INFORMATION THAT'S POSTED TO THE PUBLIC MARKET FOR FUTURE BOND OWNERS.
BUT THE ULTIMATE GOAL IS TO DEVELOP THAT PROPERTY AND TO HAVE MULTIPLE LAND OWNERS, SO THAT YOU DO SPREAD AND MITIGATE THAT RISK OVER TIME AS THAT DEVELOPMENT OCCURS.
FOR THE ASSESSMENT THEMSELVES, 372 PROVIDES PRETTY MUCH BLANKET AUTHORITY
[00:30:03]
TO THE COUNTY AND HOW THEY DETERMINE WHAT THOSE ASSESSMENT AMOUNTS SHOULD BE.THERE ARE SOME INSTANCES WHERE ASSESSMENT AMOUNTS ARE BASED ON LINEAR FEET OR THE AMOUNT OF FRONTAGE THAT A STORE MAY HAVE.
FOR COMMERCIAL, IT MAY BE DONE ON A SQUARE FOOTAGE BASIS.
HOW MUCH COMMERCIAL SPACE ARE YOU ANTICIPATING OVER THIS PLOT? FOR RESIDENTIAL PROPERTIES, THAT MAY BE ON THE ULTIMATE TAXABLE VALUE.
>> THERE MIGHT BE MULTIPLE ASSESSMENTS METHODS WITHIN A SINGLE DEVELOPMENT?
>> THERE COULD BE MULTIPLE ASSESSMENT METHODS, WITHIN A SINGLE DEVELOPMENT, BASED ON WHAT THE PROPOSED IMPROVEMENTS ARE, OR NON IMPROVEMENTS, BUT WHAT THE PROPOSED DEVELOPMENT IS, SO THAT YOU'RE ADEQUATELY SPREADING THE COST TO THE DISTRICT ITSELF.
THE IDEA BEHIND THE PUBLIC IMPROVEMENT DISTRICT IS THAT, THE AMOUNT OF ASSESSMENTS THAT ARE LEVIED, ARE SUPPOSED TO BE IN A PROPORTIONATE AMOUNT, TO THE AMOUNT OF BENEFIT THAT THAT INDIVIDUAL, EITHER LANDOWNER, OR THAT PARCEL OF LAND IS RECEIVING FROM THE DISTRICT.
THE BENEFITS THAT A SINGLE FAMILY HOME WOULD RECEIVE, WOULD BE DIFFERENT FROM THE BENEFITS THAT A MULTI-FAMILY APARTMENT COMPLEX WOULD RECEIVE.
BUT BOTH IN NORMS OF WATER, SEWER USAGE, STREET TRAFFIC, AND SO THE IDEA IS THAT AS YOU LOOK AT THE DEVELOPMENT PLAN, YOU CALCULATE ASSESSMENTS IN PROPORTION TO BENEFITS RECEIVED.
>> COMMISSIONERS, ANY OTHER QUESTIONS? THIS IS YOUR OPPORTUNITY TO HAVE SOME INPUT IN THIS BEFORE.
>> IN TOUCHING ON THE PART THAT YOU DISCUSSED EARLIER ABOUT THE MUNICIPALITIES.
I KNOW WE HAVE A COUPLE OF REPRESENTATIVES FROM AT LEAST ONE OF THE COUNTY HERE.
I WAS JUST CURIOUS, MAYBE MR. CAMWELL IF YOU WOULD, YOUR OPINION ON THIS AND [LAUGHTER] IF IT'S APPROPRIATE FOR HIM TO COME HERE.
[LAUGHTER] IF NOT, YOU CAN SAY NO.
>> THAT'S WHAT YOU GET FOR SHOWING UP MIKE.
>> I CERTAINLY DON'T WANT TO SPEAK ON BEHALF OF THE CITY, ESPECIALLY WITH THE CITY MANAGER HERE.
[LAUGHTER] HOWEVER, I'VE BEEN IN OTHER COMMUNITIES WHERE PIDS HAVE BEEN DONE, BOTH BY THE COUNTY AND THE CITY.
CERTAINLY THAT'S SOMETHING I KNOW, WHY WE'RE HERE IS TO LEARN ABOUT YOUR PROCESS AND WHERE YOU'RE AT AND WHAT YOU'RE PLANNING.
SO WE CAN HOPEFULLY DO SOMETHING TOGETHER WITH PIDS THAT WE'RE ON THE SAME PAGE, AND WE KNOW WHAT WE WANT OUT OF PIDS FOR BOTH THE COUNTY AND CITY STANDPOINT.
BUT OVERALL, I THINK WE'RE ALL EXPECTING PIDS TO BECOME MORE OF A REQUEST TO THE FUTURE, AS THE COUNTY AND THE CITY OF LOCKHART DEVELOP, AND WE NEED TO BE READY FOR THAT.
WE'RE HERE TO LEARN ABOUT WHAT YOU'RE DOING AND CERTAINLY WANT TO GET INTO THOSE DISCUSSIONS WITH THE CITY MANAGER AND CITY COUNCIL, ON TOP OF THAT.
BUT CERTAINLY, IF DONE RIGHT, PIDS CAN DO A LOT TO GET A BETTER DEVELOPMENT THAN OTHERWISE WOULD HAVE OCCURRED, WHICH OF COURSE BENEFITS EVERYONE.
IF DONE RIGHT, PIDS CAN BE A VERY POWERFUL TOOL FOR THE ECONOMIC FUTURE OF THE COUNTY.
>> GREAT. SORRY TO PUT YOU ON THE SPOT.
>> CAN I GET YOU TO COME UP HERE AND DESCRIBE WHEN YOU WERE COMMISSIONER IN HAYS COUNTY, WHAT YOU GUYS DID WITH ONE OF YOUR PROJECTS?
>> IN 1,000 WORDS OR LESS? [LAUGHTER]
>> I'VE GOT THE WORD COUNTER AS ALL BY THE WAY. [LAUGHTER]
>> WELL, THANK YOU FOR HAVING ME WELCOMELY FOR THE COUNTY.
SPECIAL DISTRICTS HAVE BEEN AROUND FOR OVER 100 YEARS IN THE STATE OF TEXAS.
PITS HAVE BEEN AVAILABLE FOR AT LEAST 25-30 YEARS IN OUR STATE AND IT'S A TOOL LIKE ANY OTHER ABILITY THAT YOU HAVE.
ALTHOUGH AS YOU ALL WELL KNOW IN COUNTY GOVERNMENT, YOU DON'T HAVE A LOT IN THE TOOL BOX.
IT WAS SOMETHING THAT I DID A GREAT DEAL OF VALUATION WHEN I WAS A PUBLIC OFFICIAL.
I STARTED WITH MY COLLEAGUES, TALKED TO A LOT OF YOUR PEERS ACROSS THE STATE, ABOUT THEIR EXPERIENCES WITH THEM.
IT'S A TOOL BUT SHOULD BE USED WITH DUE DISCRETION.
THE TOOL THAT SHOULD BE USED CAREFULLY TO TRY TO MOLD AND INFLUENCE THE DESIRES OF THE CITIZENSHIP IN THIS COUNTY AS YOU MOVE FORWARD IN A VERY FAST PACE, CHANGING COMMUNITY.
[00:35:03]
YOU GUYS HAVE ONE OF THE MOST DIFFICULT JOBS IN THE STATE WITH THE LIMITED AUTHORITIES IN WHICH YOU HAVE PRESERVING WHAT YOU LOVE ABOUT YOUR HOME WHILE GOING THROUGH A TREMENDOUS AMOUNT OF CHANGE AND WELCOMING NEW AND GREAT THINGS INTO YOUR BACKYARD AND TO YOUR REGION.FOR US AND FOR MOST QUALIFICATIONS OF PITS, IT WAS ABOUT QUALITY.
THIS POLICY WHICH IS LIKE ANY OTHER POLICY, THE COUNTING IS AT YOUR DISCRETION.
IT IS YOU SPEAKING ON BEHALF OF THE COUNTY ABOUT WHAT YOUR GENERAL STANDARDS ARE FOR A LOT OF REASONS.
ONE, YOU WANT TO MAKE SURE THAT THE MARKET IS CLEAR ABOUT WHAT STANDARDS YOU'RE GOING TO SET IN CALDWELL COUNTY.
TOO FOR YOUR OWN SELF-BEING, I DIDN'T WANT EVERY DEVELOPER IN THE WORLD WALKING INTO OUR OFFICES SAYING, I WANT ONE OF THOSE PIT THINGS.
IT STILL HAPPENED, NOT THE BURST A BUBBLE, BUT IT STILL HAPPENED BUT IT WAS VERY LIMITED BECAUSE WE SET A PRETTY HIGH STANDARD.
LIKE MOST STEALS, IT'S YOU NEED TO WHAT'S INVOLVED, WHO YOUR PARTNER IS GOING TO BE IS IMPORTANT IN THIS.
WHERE IS IT LOCATED IN THE COUNTY? YOUR COUNTY IS DIFFERENT GEOGRAPHICALLY IN DIFFERENT AREAS OF DIFFERENT ISSUES, DIFFERENT CHALLENGES.
THERE'S WATER QUALITY ISSUES, THERE'S ECONOMIC DEVELOPMENT DESIRES THAT YOU HAVE THROUGHOUT THE COUNTY AND EVEN THOSE ARE DIFFERENT IN SOME CIRCUMSTANCES.
THERE'S TRANSPORTATION ISSUES.
WE DID ONE OF THE FIRST COUNTY PITS AND PRECINCT THEORY, WHICH WAS MY OLD PRECINCT IN HAYS COUNTY, JUST OUTSIDE THE ETJ AND IN THE ETJ OF SAN MARCOS.
[INAUDIBLE]. THERE WERE SEVERAL FACTORS THAT DROVE THAT.
THE LAND THAT THE DEVELOPER HAD LOOKED AT AND HAD ASKED TO ENTER INTO A PARTNERSHIP WITH THE COUNTY, HAD A GREAT BENEFIT AND ASSET TO OUR FLOOD CONTROL SYSTEM IN SAN MARCOS.
WE WERE ABLE TO IMPROVE THAT SYSTEM AS WELL.
IT FIT VERY WELL WITH OUR TRANSPORTATION PLAN AND ADDED IN SOME TRANSPORTATION BENEFITS NOT ONLY TO THE STATE SYSTEM, WONDER WORLD AND 12, BUT ALSO THROUGHOUT THE NEIGHBORHOOD TO GET BACK OVER TO HAND A ROAD IN SAN MARCOS.
THAT WAS A GREAT BENEFIT TO THE ENVIRONMENT.
THIS WAS OVER THE OTHERS ARE PREFERS.
THIS IS AT A VERY KARST AREA OF THE COUNTY.
WE WERE ABLE TO WORK WITH THE DEVELOPER TO DO WORK ON WATER QUALITY ISSUES AND TO MAKE SURE THAT THOSE HOLES AND THE PROPER TYPE OF PROTECTIONS WERE THERE THAT TYPICALLY WE DID NOT HAVE AN AUTHORITY TO APPLY WHERE THEY ARE IN ORDER TO PROTECT THE ENVIRONMENT.
WE ALSO DID A WHOLESALE BARGAINING AGREEMENT ON ABOUT 750 ACRES OF LAND THAT HAYS COUNTY HAS A HABITAT CONSERVATION PLAN FOR ENDANGERED SPECIES.
THIS LAND HAD A LOT OF ENDANGERED SPECIES.
WE NEEDED THE LAND IN ORDER TO BE ABLE TO FACILITATE OUR 7A AND 10A PERMITTING PROCESS THAT WE ENTERED INTO AN AGREEMENT WITH THE US FISH AND WILDLIFE AND WE GET THAT LAND AT A TREMENDOUS DISCOUNT.
WHAT I MEAN, IT'S ALL SITUATIONAL.
WORKED IN WELL WITH A TRACK OF LAND THAT WE HAD BEEN WORKING WITH THE CITY OF SAN MARCOS ON FOR A DECADE.
IT WAS ADJACENT TO IT. ADDED 750 ACRES TO WHAT YOU-ALL MIGHT KNOW IF YOU'RE FAMILIAR WITH SAN MARCOS AT ALL AS A PURGATORY CREEK.
IT'S ONE THE LARGEST URBAN PARK PRESERVES CONSERVATION AREAS IN OUR STATE.
IT'S ALL CONDITIONAL, ALL SITUATIONAL.
YOU WANT TO MAKE SURE YOU HAVE A GOOD PARTNER.
YOU'LL WANT TO BE SELECTIVE AND YOU WANT TO MAKE SURE THAT YOU'RE DOING YOUR BEST TO BENEFIT THE COMMUNITY AS A WHOLE.
ONE MORE IMPORTANT ELEMENT AND MIKE CAN SPEAK TO THIS AS WELL BECAUSE HE AND I WERE WORKING TOGETHER AT THE GREATER SAN MARCOS PARTNERSHIP WHEN THIS WAS DONE.
THERE WAS A HUGE ISSUE, PARTICULARLY FOR SAN MARCOS, IN RECRUITING THE TYPE OF ECONOMIC DEVELOPMENT THAT WE'RE LOOKING FOR.
BECAUSE SAN MARCOS WAS GOING THROUGH A LONG PERIOD OF BUILDING NOTHING BUT DUPLEXES AND APARTMENTS.
IN THE HOUSING INVENTORY, WERE REGULAR, MIDDLE-CLASS,
[00:40:01]
UPPER-MIDDLE-CLASS, WORKING FOLKS WOULD LIVE, HAD REALLY BEEN TAKEN AWAY IN SAN MARCOS.THERE WAS NO MORE INVENTORY AND ALL THE MARKET WAS DOING WAS BUILDING DUPLEXES AND APARTMENTS.
WELL, AS HUMAN MOVEMENT WE WENT AND RECRUITED ALL THESE DIFFERENT COMPANIES AND TALKED TO THEM.
THEY WERE LIKE, WHERE ARE MY MIDDLE MANAGEMENT AND UPPER MANAGEMENT PEOPLE GOING TO LIVE? WELL, I LIVE IN WEMBLEY OR SOMEPLACE LIKE THAT OR IN THE LOCAL AREA.
THEY'RE LIKE, WELL, WE WANT TO BE IN SAN MARCOS.
IT WAS REALLY LIMITING THE SCOPE AND THE DEPTH IN WHICH DIFFERENT ECONOMIC OPPORTUNITIES WOULD COME IN SPECIFICALLY TO THE SAN MARCOS AREA.
THE DEVELOPER WAS PROPOSING SOME FAIRLY HIGH AND WHEN I SAY HIGH AND IT'S ALL PERSPECTIVE IS NOT SOME OF THESE CRAZY STUFF YOU SEE TODAY.
BUT GOOD MIDDLE INCOME, UPPER-INCOME HOUSING.
THAT THE MARKET WAS JUST NOT QUITE THERE YET.
INSTEAD OF WAITING FOR THAT, THE PARTNERSHIP ALLOWED THE MARKET TO MAKE MORE SENSE.
WE WERE ABLE TO GET A MUCH HIGHER STANDARD OF HOUSING AND DEVELOPMENT THAN WE WOULD'VE UNDER JUST NORMAL CIRCUMSTANCES.
IT ALSO HAD A COMMERCIAL ELEMENT TO IT.
THOSE ARE ALL THINGS THAT YOU NEED TO TAKE INTO CONSIDERATION AS YOU LOOK INTO THIS POLICY OF THE DAY.
AS YOU GUYS KNOW, THESE DIFFERENT INVESTMENT OPPORTUNITIES AND PROPOSALS ARE HAPPENING ALL ACROSS OUR REGION.
BASTROP THE OTHER DAY, JUST TO PROVE THEIR FIRST PIT AGREEMENT, THEY APPROVED A POLICY SOMETIME AGO.
COMAL HAS A GOOD POLICY, TRAVIS HAS A POLICY.
BIDS HAVE BEEN GOING ON IN TRAVIS COUNTY NOW FOR QUITE SOME TIME.
WILCO THE SAME. AGAIN, PREACHING TO THE CHOIR AND THINGS YOU ALREADY KNOW.
IT'S HERE AND IT'S ABOUT TO JUST ACCELERATE.
QUESTION IS, WHAT IS IT GOING TO BE AND HOW IS IT GOING TO FIT INTO YOUR COMMUNITY AND THE BEST WAY POSSIBLE? IT'S ONE OF THE TOOLS THAT GIVE YOU THE ABILITY TO INFLUENCE THAT IN A REAL WAY. THANK YOU, JUDGE.
COMMISSIONERS, ANY OTHER QUESTIONS OR COMMENTS OR THINGS YOU'D LIKE TO SEE ADDED OR TAKEN OUT BEFORE THIS THING COMES BACK AROUND ON AN AGENDA? NO? PERFECT.
ALRIGHT. EITHER MEANS YOU DID A GOOD JOB OR WE ARE ALL SLEEPY AFTER LUNCH.
WELL, I APPRECIATE YOU, STEPHANIE, FOR COMING AND GIVING US THAT PRESENTATION AND THANK YOU, WILL, IN MY SHORT NOTICE FOR GETTING UP AND PROVIDING COMMENTS.
ABSOLUTELY. IF ANYONE HAS ANY FOLLOW-UP QUESTIONS AFTER THE FACT, ANY COMMENTS AFTER THE FACT, FEEL FREE TO REACH OUT TO ME DIRECTLY OR THROUGH THE COMMENTS TO JUDGE HAYDEN OR BARBARA.
THEY KNOW HOW TO GET IN TOUCH WITH ME.
WE DEFINITELY WANT TO BE A RESOURCE FOR THE COUNTY WITH THIS.
WE KNOW THAT ESPECIALLY FOR THOSE INITIAL ISSUANCES AND THE INITIAL PENETRATIONS IT'S A VERY LARGE LEARNING CURVE ASSOCIATED WITH IT.
BUT BOTH WITHIN MY FIRM AND THEN AS YOU ONBOARD A PIT ADMINISTRATOR, THERE'S A WEALTH OF KNOWLEDGE THAT'S AVAILABLE TO THE COUNTY THROUGH ITS CONSULTANTS.
WE JUST ENCOURAGE YOU ALL TO ACCESS THOSE RESOURCES AS THEY'RE NEEDED SO THAT YOU ARE COMFORTABLE AS YOU MOVE FORWARD WITH THIS PROCESS BECAUSE IT IS AND WILL BE A TYPICAL FROM A COUNTY A TRADITIONAL PUBLIC SECURITY ISSUANCE.
WELL, THE NEXT STEPS READ TO BRING THE POLICY BACK.
SO THE THING BY THE LC OR MAKE COMMENTS, MORE THAN WELCOME.
OTHERWISE, A LIFT FOR A MOTION TO ADJOURN.
WE HAVE A MOTION. DO WE HAVE A SECOND? SECOND.
WE HAVE A MOTION AND A SECOND.
ALL IN FAVOR OF ADJOURNMENT SAY AYE.
WE ARE ADJOURNED AT 1:44.
* This transcript was compiled from uncorrected Closed Captioning.