In September 2016, the City Council approved the creation of the Quail Valley PID, encompassing approximately one-fourth of the entire Walsh Ranch property, as a vehicle to reimburse the Developers for certain infrastructure costs. Full development of the Quail Valley PID will encompass seven phases that occur over several years as phases of the Quail Valley PID are developed. This Mayor and Council Communication (M&C) is intended to address Improvement Area No. 1 of the Quail Valley PID, which is the first phase of development. On March 7, 2017, the City Council adopted Resolution No. 4758-03-2017 concerning certain matters related to the Quail Valley PID, including the following: (1) determining the costs of certain public improvements; (2) accepting a preliminary service and assessment plan, including a proposed assessment roll; (3) directing the filing of the proposed assessment roll with the City Secretary; (4) calling for a public hearing to consider the ordinance levying special assessments on property located within the area defined as Improvement Area No. 1 of the Quail Valley PID and (5) directing Staff to publish and mail notice of this public hearing to the property owners liable for payment of the special assessment. The purpose of this public hearing is to receive comments from the public regarding the proposed special assessments to be levied on each property in Improvement Area No. 1 of the Quail Valley PID. As outlined in the Service and Assessment Plan, improvements in the amount of $6,350,000 are to be funded by the special assessments, including $5,712,973.00 for paving expenses and $637,027.00 for landscaping expenses. The special assessments will be levied across 587 residential units (representing 101.7 acres) and collected over a 35 year period. The 587 lots are divided into five categories, with each category represented by lot width. Widths including categories as follows: 35 feet, 50 feet, 60 feet, 70 feet and custom lot sizes. Assessments will be allocated as follows: Lot Size | # of Lots | Annual Installment | 35 feet | 28 | $ 517.00 | 50 feet | 239 | $ 642.00 | 60 feet | 182 | $ 791.00 | 70 feet | 98 | $1,008.00 | Custom | 40 | $1,670.00 |
In addition to the $6,350,000.00 of improvements funded by the special assessments, the Developers are constructing, without reimbursement from the Quail Valley PID, additional improvements in the amount of $23,168,594.00, bringing the total costs of improvements in the PID to $29,518,594.00. The Developers will be responsible for managing all construction and the associated Agreements for the development of the lots and residential units within the Quail Valley PID. Beginning in 2019, the City will begin to make quarterly payments to the Developers in satisfaction of the Reimbursement Amount from the special assessments revenues, less any administrative fees. The Reimbursement Amount will be paid over a maximum period of 30 years. Until bonds, if any, are issued, the Developer will be entitled to interest on the unpaid Reimbursement Amount at the rate of 6 percent in years 1 and 2, and 5 percent in years 3 through 28. If any portion of the Reimbursement Amount remains unpaid after the City has elected to issue bonds, the interest rate on the unpaid Reimbursement Amount shall be the same as the interest rate on the bonds. It is anticipated that within five years, provided that the Developers have satisfied certain obligations designed to ensure the rapid development of the entire Quail Valley PID, the City will explore options to accelerate the reimbursement of the Developers by issuing debt secured by a portion of the special assessments.
In order to maintain Developers construction schedule, portions of the property in Improvement Area No. 1 have been sold to home developers since the PID was created. The Majority Landowner Agreement addresses the responsibilities of Developers and City with respect to notices, assurances, and payment of assessments for property in Improvement Area No. 1 that is not owned by the Developers. Finally, the adoption of the attached appropriation ordinance provides the necessary funding for the City to pay the costs of services associated with the set-up and ongoing administration of the Quail Valley PID. Expenses will cover costs for financial advisors, PID administrators, and legal services up to $350,000.00. Revenues will also be adjusted by the same amount but are not anticipated to be received until Fiscal Year 2018. It is recommended that the City Council adopt the attached ordinance levying such special assessments and approving the Service and Assessment Plan and Assessment Roll, adopt the resolution approving the Reimbursement Agreement and adopt the appropriation ordinance increasing estimated receipts and appropriations in the Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) Fund in the amount of $350,000.00.
|
