Bee Cave proposes public improvements district at The Backyard development

Bee Cave City Council met Oct. 13 to discuss the establishment of a public improvements district at the future site of The Backyard development. (Rendering courtesy city of Bee Cave)
Bee Cave City Council met Oct. 13 to discuss the establishment of a public improvements district at the future site of The Backyard development. (Rendering courtesy city of Bee Cave)

Bee Cave City Council met Oct. 13 to discuss the establishment of a public improvements district at the future site of The Backyard development. (Rendering courtesy city of Bee Cave)

As progress continues on The Backyard development in Bee Cave, residents could see the establishment of the first public improvements district within city limits.

The PID, according to city information, would permit Bee Cave to levy an assessment against properties within a selected area to pay for desired public improvements that would primarily serve that area. Bee Cave would then issue bonds to fund those capital projects and pay them off by levying an annual installment on those within the PID.

Bee Cave City Council unanimously passed a resolution during an Oct. 13 meeting to establish a PID following a presentation from Robert Rivera, a representative of FMS Bonds Inc. and the city’s acting PID underwriter.

In this case, the PID will pertain to the roughly 35 acres of land between Bee Cave Parkway and Hwy. 71 slated for the upcoming multiuse development. Site plans for The Backyard were approved in May and feature a high-capacity outdoor entertainment venue, a 125-room hotel, offices, parking garages and a hilltop garden, among other features.

Backyard Partners Finance LLP petitioned Bee Cave officials to request the establishment of a PID, according to Mayor Kara King, who said the financing tool would enable the developers to complete improvement projects faster than if they raised the capital internally.

Per the drafted terms, the desired improvements are estimated at $25 million, and the maximum bonds to be issued by the city are estimated at $20 million.

Future services conducted through the PID could include public maintenance, capital improvements, marketing efforts or various beautification projects, Rivera noted.

“Ultimately, you have a developer who believes so much in his or her project that they’re asking the city to issue bonds to pay for future infrastructure,” Rivera said. “But the city is not on the hook; these bonds are not recourse to the city.”

Rivera said nearby cities have also established PIDs in the process of constructing new developments—Austin, Leander and Hutto, to name a few—and ultimately, they pose little financial risk for municipalities.

Bee Cave is not responsible for the issued debt, and if the developers are unable to meet the financial obligations, it would not impact the city’s credit rating and financial stability, Rivera said.

City Manager Clint Garza also noted the obligation would not be dispersed throughout the city, meaning the property owners within The Backyard would be solely responsible for paying the annual installments.

However, resident Marie Lowman questioned whether a PID was a suitable choice for Bee Cave. During the meeting’s open forum session, Lowman said, “projects that do not work without a PID, will not magically work with one.”

Furthermore, Lowman stated PIDs, while common in Texas, were initially created to spur developments and infrastructure projects in regions that developers were not traditionally interested in. Yet, according to Lowman, Bee Cave remains a desirable location for future developers.

Following council’s approval of the PID, King clarified the actions taken during the Oct. 13 meeting will not obligate the city to issue any future bonds. Bee Cave has the opportunity to pull back from this agreement if desired.
By Amy Rae Dadamo
Amy Rae Dadamo is the reporter for Lake Travis-Westlake, where her work focuses on city government and education. Originally from New Jersey, Amy Rae relocated to Austin after graduating from Ramapo College of New Jersey in May 2019.


During a Jan. 26 meeting, Bee Cave City Council members and nearby residents had a first look at an engineering and planning study for the Great Divide Drive low-water crossing. (Courtesy James Cooke)
Report on Great Divide crossing brings early good news on proposed scope of improvements

Local residents welcome the lower cost and size of a Great Divide low-water crossing.

Photo of the Travis County sign
Travis County votes to accept application for Silicon Silver development incentives agreement

The company behind the project will be named once it submits an application and pays a $150,000 fee—the same as Tesla paid to apply for its hefty 2020 agreement.

Previous headliners included Cody Johnson, Turnpike Troubadours, Aaron Watson and Mark Chestnutt, among others. (Courtesy KOKEFest)
KOKEFest releases dates in Hutto; Marisol's Mexican Grill taking orders in Georgetown and more area news

Read the latest business and community news from the Central Texas area.

Lakeway-based private tutoring service partners with coworking space to create safe learning environment

Tutor Doctor has a growing pool of more than 25 tutors with the ability to teach a wide variety of school subjects and life skills for individuals of any age.

Ellera will open Jan. 30 in Bee Cave. (Courtesy Ellera)
Upscale, Boston-style Italian restaurant to open in Bee Cave and more business news from Lake Travis area

Ellera will open at 12432 Bee Caves Road, Bee Cave, to serve pasta and seafood dishes, cocktails, and a range of Italian wines and craft beers.

City officials are facing growing pressure to address the growing visibility of homelessness in Austin. (Olivia Aldridge/Community Impact Newspaper)
Sanctioned homeless camp proposal gains attention from Austin leaders as pressure mounts

Mayor Steve Adler said the urgent need for shelter space and housing could overrule initial objections to sanctioned homeless encampments.

See how COVID-19 continues to impact Travis County. (Community Impact Newspaper staff)
Despite drop in hospital admissions, Travis County adds 4,039 new COVID-19 cases over past 7 days

Overall, Travis County has reported 65,507 confirmed COVID-19 cases.

Construction at Q2 Stadium is on schedule to be completed by late March or early April. (Nicholas Cicale/Community Impact Newspaper)
Austin FC will play at newly named Q2 Stadium starting this summer

Austin FC announced the naming partnership with Austin-based tech company Q2 Holdings Inc. at a ribbon-cutting ceremony Jan. 25.

Lane closures will occur at Redbud Trail. (Community Impact Staff)
Temporary lane closures in effect on Redbud Trail bridge in Westlake

Residents can anticipate alternate lane closures beginning Jan. 25 on the Redbud Trail bridge in the Westlake region.

Early voting will begin April 12 for the May 1 election. (Liesbeth Powers/Community Impact Newspaper)
Lake Travis ISD calls board of trustees election for May

Trustees officially called the election during a Jan. 20 board meeting, with Place 1 and Place 2 on the ballot.

Hays County opened its COVID-19 vaccine portal Jan. 22. (Courtesy Adobe Stock)
Vaccine portal opens in Hays County; read Austin business news and more Central Texas info

Read the latest business and community news from Central Texas.