R-05-12-15-9E5 - 12/15/2005RESOLUTION NO. R -05-12-15-9E5
A RESOLUTION APPROVING CERTAIN REIMBURSEMENTS
FOR A PORTION OF BEHRENS RANCH PID
IMPROVEMENTS, PROVIDING A SAVINGS CLAUSE AND
REPEALING CONFLICTING ORDINANCES OR
RESOLUTIONS.
WHEREAS, On April 27, 2000, the City Council adopted a Resolution
which authorized and approved the Creation of the Behrens Ranch Public
Improvement District (the "PID"), and
WHEREAS, on December 21, 2000, the City Council adopted
Resolution No. R -00-12-21-9B1, which authorized the Mayor to execute a
Development Agreement ("Development Agreement") with Behrens
Subdivision, Ltd. regarding the Behrens Ranch PID, and
WHEREAS, on February 8, 2001, in Ordinance No. G -01-02-08-8A9,
the City Council adopted an Ordinance Levying Assessments for the Cost
of Certain Improvements (the "Assessment Order") against real property
within the PID, and
WHEREAS, on December 20, 2001, the City Council adopted a
Resolution authorizing the creation of an Escrow Agreement ("Escrow
Agreement") establishing an Escrow Fund Account ("Escrow Fund") in
which PID assessments were to be held in trust solely for the PID, and
WHEREAS, the PID has collected approximately $590,000 in
assessments since January 31, 2002, and
WHEREAS, pursuant to the terms as stated in the Assessment Order,
the Escrow Agreement and the Development Agreement, the City desires to
reimburse the Developer, Behrens Subdivision N.G., Ltd., or its assigns,
for a portion of the cost of certain PID improvements, Now Therefore
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BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
I.
That the Director of Finance is hereby authorized to reimburse to
Behrens Subdivision N.G., Ltd., or its assigns, the sum of FIVE HUNDRED
FIFTY THOUSAND AND NO/100 DOLLARS ($550,000.00), pursuant to Section 3
of the Escrow Agreement, Section 3 of the Development Agreement and
Section 5 of the Assessment Plan included within the Assessment Order.
II.
As a condition of said reimbursement, the City finds the
following:
1) That the Developer has submitted a request for this
reimbursement, said request being attached hereto and
incorporated herein as Exhibit "A";
2) No bonds have been issued at this time;
3) The City Engineer has determined that the cost of Wyoming
Springs Boulevard, a PID improvement, is in excess of
$550,000; and
4) The $550,000 reimbursement does not affect or alter any of
the rights, duties and obligations as set forth in the
Development Agreement or the Assessment Order.
RESOLVED this 15th day of December, 2005.
ATTEST:
CHRISTINE R. MARTINEZ, City Secre,ary
2
WELL Mayor
Ci y of Round Rock, Texas
Real Estate
Development Group
1004 Mopac Circle
Suite 201
Austin, Texas 78746
Phone. 512.306.B300
Fax. 512.306.8399
December 6, 2005
Mr. James Nuse
City Manager
City of Round Rock
221 Main Street
Round Rock, Texas
Executive Summary
Behrens Ranch Public Improvement District
In April, 2000, the City of Round Rock ("City"), established the Behrens Ranch Public
Improvement District, Ordinance G -01-02-08-8A9 ("PID"), to reimburse Behrens Subdivision,
Ltd. ("Developer") for costs of public improvements within Behrens Ranch, including water,
wastewater, irrigation, road and drainage facilities, to include Wyoming Springs Drive, an
arterial roadway, and an approximate 26 acre drainage channel (the Improvements). It was
determined that the Improvements would promote local economic development and
stimulate business and commercial growth in the City by increasing the tax base of the
Round Rock Area.
Status of Development
All improvements as contemplated in the PID have been completed. In addition, as of
December 15, 2004, 7 Sections consisting of 503 single-family residential lots on
approximately 186 acres, have been constructed and paved, a total of 264 homes are
completed and occupied, 44 homes are under contract and construction, 29 homes are
under construction or continue to be owned by various builders. There are approximately 20
acres that are currently under construction, and another 80 acres of developable acreage
that has not been provided with water distribution, wastewater collection and storm drainage
facilities. There are approximately 240 acres of open space/park area, a 4 acre community
center, a 13 acre elementary school and approximately 9 acres of ROW. Homes within
Behrens Ranch range in market value from approximately $230,000 to in excess of
$800,000.
In December 2004, certain residents of Behrens Ranch Subdivision (collectively, the
"Plaintiffs") entered into a Compromise and Settlement Agreement and Release (the
"Settlement Agreement") with Behrens Subdivision, Ltd., James W. Meredith, Meredith
Gressett, Inc. and Masonwood Development Co., (collectively, the "Defendants"). The terms
of the Settlement Agreement include the following:
1. The Defendants have paid Plaintiff's $375,000 to date;
2. The Defendants pay to the Plaintiffs an additional $300,000 to be paid 180 days after the
date certain properties within the PID is rezoned;
3. If the zoning change occurs, the Defendants pay to the Behrens Ranch Master
Association, Inc. (the "HOA") $250,000 within 180 days after the zoning change date to pay
for amenities within the subdivision; and
Compliance with Development Agreement
The Developer is in compliance with the Development Agreement and has dedicated alt
improvements to the City. In particular, the Developer is current on all taxes, fees and
obligations to the City and the PID.
EXHIBIT
Request from Reimbursement
Per the Development Agreement, the City is hereby requested to reimburse the Developer
for funds advanced for the Improvements, subject to the following stipulations:
1. The Developer agrees to submit invoices for the actual costs of the Improvements for
which reimbursement is sought. A reimbursement audit will be preformed by an accounting
firm acceptable to the City (at the expense of the Developer, which expense may be
deducted from the Developer reimbursement) prior to the reimbursement for the audited cost
of such improvements.
2. The Developer agrees that the City will be allowed to recover its own administrative costs
related to the PID prior to any reimbursement to the Developer for the cost of the PID
Improvements covered by the Development Agreement.
3. The Developer agrees that no Bonds wilt be issued by the PID until and unless sufficient
escrowed funds exist to satisfy the City's Financial Advisor and First Southwest Company
that an adequate Debt Service Reserve Fund has been fully funded.
4. The Developer agrees to provide funds sufficient to prepay entire assessments on
parkland and other City property within the PID, prior to issuance of any bonds.
5. The Developer agrees to provide such information as requested by the City and its
consultants as they deem necessary to finalize the finance plan for reimbursement.
6. The Developer has complied in all respects with the terms of the Settlement Agreement
to date.
7. As part of this request, the Developer hereby directs and authorizes the City to pay out
escrowed funds in the amount equal to $550,000 to Behrens Subdivision, NG, Ltd. prior to
December 15. 2005. Funds in the amount of $300,000 will then be directed by Behrens
Subdivision, NG, Ltd. to the Plaintiffs and $250,000 to Behrens Ranch Master Association.
Sincerely,
nwood Pro ertips, Inc.
A �.
mes W. Mereth
President
cc: David Kautz
Charlie Crossfield
Gary Kimball
z lopon filas4nasonwood properires, inc -file no.10301behrens subdivision - no. 0021pid kr revised 120605.doc
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DATE: December 7, 2005
SUBJECT: City Council Meeting -, December 15, 2005
ITEM: 9.E.5. Consider a resolution approving certain infrastructure
reimbursements in the Behrens Ranch Public Improvement District.
Department:
Staff Resource:
History:
Funding:
Cost:
Source of Funds:
Administration
David Kautz, ACM/CFO
Charlie Crossfield, Sheets & Crossfield
In April 2000, the Behrens Ranch Public Improvement District
(PID) was created. A PID is a defined area within the City or ETJ
to provide additional services or infrastructure in the defined area
and paid for by specific assessments on property within the PID.
Infrastructure improvements were made by the Behrens Ranch
developer in the PID including Wyoming Springs road, utility
improvements and drainage improvements.
Assessments are being collected on various classes of properties in
the PID: open space (formerly proposed golf course), unplatted,
platted and certificated lots..
Cash is being accumulated in anticipation of servicing debt on
proposed developer reimbursement bonds. The developer has
requested a partial reimbursement in cash.
PID Infrastructure Improvements are completed
$550,000
Behrens Ranch PID Assessments
Outside Resources: First Southwest Co, Investment Banking
McCall Parkhurst, Bond Counsel
Public Comment: None