What you need to know
City officials discussed a request for a fully commercial PID at The Preserve, a development currently under construction near the entrance of Water Oak, a residential community in west Georgetown.
The project includes 18 buildings that will provide retail, commercial and office space throughout 20.26 acres, Assistant City Manager Nick Woolery said during the meeting’s presentation.
The PID request was submitted by Rupe Gopani on behalf of the site owner, 3701 SH29 LLC. PID reimbursements—a financing tool developers use to help recover infrastructure costs—for nine authorized improvements are being sought by the developer, with a combined cost of about $5 million, according to the presentation.
In 2020, the development was annexed into city limits and later approved for a planned unit development zoning district, according to city documents. The area is being developed by Georgetown-based OM Properties, according to previous Community Impact reporting.
Explained
PIDs are physical areas governed by the city or county where certain assessments are levied, or imposed, Woolery said. The PID would be used to help fund infrastructure improvements for the development, according to city documents.
“This would set them up more for success,” Woolery said.
The Preserve project falls under a bond-issuing PID, which issues bonds to finance more large-scale capital improvements that pay off the bonds through assessments, Woolery said.
Why it matters
Most PIDs that City Council members review are residential, but Woolery said The Preserve is a commercial site. Since there’s no residential space within the project, the PID will not impact Georgetown’s residential taxpayers, according to the presentation.
“What’s unique in this case—and would be the compelling reason to consider a PID in this case—would be to support a commercial development happening in an area of town that needs it,” Woolery said.
City funds would not be used to reimburse the developers, since assessments will be used as the debt service source, according to the presentation.
City Council has a maximum PID assessment of $0.55 per $100 assessed evaluation, Woolery said, and the developer’s request came in right at $0.55. The city’s maximum PID bond limit for the development is roughly $4.4 million, according to city documents.
Stay tuned
Council members discussed potential financial risks with issuing the PID, along with city requirements if officials vote to approve it, such as authorizing ordinances and issuing PID bonds. If council members determine a PID proposal is needed, officials will hold a public hearing on the item.
Woolery said it’s possible the city will update its PID policy, as Mayor Pro-Tem Kevin Pitts pointed out the likelihood of additional commercial requests coming through.
“I think there will be probably some tweaks to the policy that we’ll want to make,” Woolery said.
Phase 1 improvements at The Preserve, which include five buildings, are set to be completed in the first quarter of 2025, Vipul Gopani said on behalf of OM Properties in an email to Community Impact. Phase 2 includes the construction of at least four other buildings.
Trillium Montessori is in a contract to purchase a building on the site, where the school plans to open a new location, Vipul said.
