Background:

On April 6, 2021, the City Council approved Resolution No. 21-04 authorizing the creation of the Park at Eldridge Public Improvement District (the District). The District was created to finance improvements for the Park at Eldridge subdivision, an approximate 21-acre single-family residential development located at the southwest corner of West Airport Blvd and Eldridge Road. A Reimbursement Agreement between the City and John S. Beeson, Trustee, was subsequently approved on May 18, 2021 outlining the terms by which the City will reimburse the Developer for the costs of improvements associated with the acquisition, construction, or improvement of public water, wastewater, or storm drainage facilities in the District; acquisition, construction, or improvement of streets, sidewalks or any other roadway; and acquisition of real property in connection with the improvements for a total amount not to exceed $1,742,312.

Amendments:

The Reimbursement Agreement included that the City will levy an assessment on property within the District based on a fee per lot for platted property based on the status as of January 1st of that year and regardless of the development status of each parcel. The assessment was originally set to begin with the 2022 tax year at an estimated per-lot assessment of $815.00. Due to the implementation of the development taking longer than anticipated, lots were not platted until this year (2023). Therefore, Article III of the Agreement is being amended to reflect the assessment to begin in tax year 2024 with a revised per lot assessment amount of $935.00 to account for increased interest rates since the original amount was calculated. The revised assessment amount has also been updated in Exhibit C, which outlines the PID analysis.

Additionally, the original Agreement included requirements for a notice to purchasers to alert any prospective property owner of the existence of the PID and the proposal of Assessment Rates on the property. An example Notice to Purchasers was included as Exhibit D to the Agreement. The Notice to Purchasers has also been revised to reflect the assessment will begin in tax year 2024 with a revised per-lot assessment amount of $935.00.

Recommendation:

Staff recommends the City Council approve the amended Reimbursement Agreement between the City of Sugar Land and John S. Beeson, Trustee for the Park at Eldridge PID, to amend Article III and Exhibits C and D.