The city of Jersey Village is considering issuing $8 million in certificates of obligation to help pay for land acquisition related to Hwy. 290 construction within city limits. City Council moved to publish the notice of intent at its Jan. 19 meeting with plans to review bids and make a final decision at the March 16 meeting.
The city was required by the Texas Department of Transportation to relocate water and sewer lines along portions of Segments 6 and 7 of the project, City Manager Mike Castro said. Segment 6 covers Hwy. 290 east of Jersey Drive, and Segment 7 runs west of Jersey Drive.
Sewer line relocation on Segment 6 is completed, and the water line portion is about 50 percent completed, Castro said. Funding for Segment 6 came entirely out of city reserves.
However, the city would need to take on debt to move forward with Segment 7 of the project. TxDOT has agreed to reimburse the city for the majority of the construction costs, but questions remain regarding the cost of land acquisition, Castro said.
"That is subject of an ongoing lawsuit with TxDOT," he said. "We were granted summary judgment, but TxDOT appealed that lawsuit, and the final resolution may be several years away."
With no clear answer on whether the city will be reimbursed for land acquisition, Castro said it is still imperative to move forward in the process. With engineering plans and appraisals largely completed, the next step involves condemnation for the 38 parcels comprising Segment 7. Letters will be sent to property owners of all parcels with a condemnation notice and monetary offer for the land.
"I think we have gone as long as we can go before we start to acquire properties," Castro said. "It is my belief that a percentage of these property owners will settle with the city fairly straightforward. I'd like to be prepared at the time to be able to respond favorably. This will be taxing for the city, so it would be great if we could do this responsibly and quickly to get it taken care of as soon as possible."
The time period for the certificates of obligation in this case is 10 years, but they also come with a special feature allowing the city to pay the debt off all at once in the event TxDOT provides a reimbursement, Castro said. The debt can only be used on Hwy. 290 utility relocation and cannot be diverted to any other city projects, he said.
Certificates of obligation differ from general obligation debt, which is voted on in bond elections. Certificates of obligation can be issued by a city without a public vote and are generally used for emergency needs.
Several Jersey Village residents spoke at the Jan. 19 meeting, expressing concerns about the debt and the TxDOT reimbursement. Castro said his staff remains committed to getting a fair reimbursement for the project.
"TxDOT, in its willingness to get the project moving, has settled quickly and expensively for lots along Hwy. 290," he said. "Timely reimbursement from TxDOT is a top priority for this city and my staff for this coming year."
