At its Nov. 14 meeting, Magnolia City Council gave its approval to three agreements with the Magnolia Economic Development 4A and 4B corps. regarding payment of Texas Department of Transportation state infrastructure bank, or SIB, loans. The loans are also on the corporations’ respective 2023-24 project lists, which council also approved.

SIB loans can be used to construct, maintain or finance eligible transportation projects, according to TxDOT’s website.

Council’s approval comes after both corporations approved the loan agreements at their Oct. 12 meetings.

In a nutshell

The 4A and 4B corporations receive funding from one-half cent and one-quarter cent of sales tax revenue, respectively, Community Impact previously reported. The corporations are separate entities from any other board or commission of the city of Magnolia and are each overseen by a board of directors and City Council, according to the MEDC's website.

• 2011: $2 million used for utility relocation along FM 1774 to north of FM 1488
• 2017: $1 million used for utility relocation along FM 1774
• 2021: $892,000 used for utility relocation along FM 1488
• 2022: $2.8 million used for FM 1488 widening from FM 1774 to FM 149

Per the approved agreements:

• The 4A Corp. will pay the remaining balance of the 2011 and 2017 loans, which totals $951,666.82
• The 4B Corp. will pay annually the 2021 SIB loan; the payment for fiscal year 2023-24 is $1,678.48.

The city will pay off the 2022 SIB loan, Community Impact previously reported.

Other council actions

• Council approved the 2023-24 project lists for the 4A and 4B corps., which includes projects such as license plate cameras, and a downtown market and parking lot project.
• Council approved a resolution that approves the city moving forward with the purchase of 1.532 acres of property from Magnolia Ridge Development LLC for a future well site and water plant.

Learn more

View the loan payment agreements below.