Conduct Public Hearing to Consider the Levying of Special Assessments in Fort Worth Public Improvement District No. 17 (Rock Creek Ranch); Adopt Ordinance (1) Levying Special Assessments on the Property Located in the Rock Creek Ranch PID, (2) Approving Service and Assessment Plan for the Rock Creek Ranch PID (Service and Assessment Plan), (3) Approving Assessment Roll for the Rock Creek Ranch PID (Assessment Roll) and (4) Ordaining Other Matters Related Thereto and Adopt Resolution Approving the Reimbursement Agreement (Reimbursement Agreement) with Walton Development and Management TX, LLC to Address Construction, Acquisition and Financing of the Improvements for the Rock Creek Ranch PID (COUNCIL DISTRICT 6)

It is recommended that the City Council:

1.  Conduct a public hearing concerning the proposed special assessments to be levied on the property located in the Rock Creek Ranch PID with collection to begin for the 2017 Tax Year;

2.   Adopt the attached ordinance (a) levying special assessments on the property located in the Rock Creek Ranch PID in tax year 2017 with the first collection to be due on January 31, 2018 and the last installment to be due on January 21, 2037, (b) approving the Service and Assessment Plan, (c) approving the Assessment Roll for the Rock Creek Ranch PID and (d) ordaining other matters related thereto; and

3.  Adopt the attached resolution approving the Reimbursement Agreement with the Developer setting forth the terms governing the construction, acquisition and financing of the improvements in the Rock Creek Ranch PID.

In December 2016, the City Council approved the creation of the Rock Creek Ranch PID, encompassing approximately 1,756 acres located entirely within the corporate limits of the City, as a vehicle to provide a funding mechanism for needed infrastructure related to Tarleton State University.  Full development of the Rock Creek Ranch PID will encompass multiple phases that will occur over several years.  It is anticipated that when fully developed, the PID will include approximately 4,917 single family residential homes, approximately 2,520 multi-family residential units, approximately 3,780,000 square feet of commercial space and 960,000 square feet planned as a public university.  

On August 1, 2017, the City Council adopted a resolution concerning certain matters related to the Rock Creek Ranch PID including the following:  (1) determined the costs of certain public improvements; (2) accepted a preliminary service and assessment plan, including a proposed assessment roll; (3) directed the filing of the proposed assessment roll with the City Secretary; (4) called for a public hearing to consider the ordinance levying special assessments on property located within the Rock Creek Ranch PID and (5) directed Staff to publish and mail notice of this public hearing to the property owners liable for payment of the special assessment.

The purpose of the public hearing is to receive comments from the public regarding the proposed special assessments to be levied on each property within the Rock Creek Ranch PID which are expected to be approximately $14,000,000.00 inclusive of project costs, project cost contingencies, capitalized interest through fiscal year 2020, debt service reserve funds, underwriting discounts and financing costs.  The special assessments will be levied across all of the land within the PID, other than Tarleton State University property, providing an estimated $1,540,000.00 in revenue to pay the anticipated debt to be issued to fund the water and sewer improvements.  Until land within the PID is sold, the Developer is responsible for the entire annual assessment amount.  If the development plan currently outlined in the SAP materializes, then the annual installments are anticipated to be levied at a tax rate equivalent of $0.06 per $100.00 of assessed value.  In 2018, it is anticipated that an additional assessment on the property within the Rock Creek Ranch PID will occur.  This assessment along with anticipated funding from the City, will be used to fund the extension of Brewer Road.

The Developer will be responsible for managing all construction and the associated Agreements for the development of the lots and residential units within the Rock Creek Ranch PID.

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 and adopt the resolution approving the Reimbursement Agreement for the Fort Worth Public Improvement District No. 17 (Rock Creek Ranch).