The WFBMD is a nonprofit organization that works to develop the West Fort Bend area, more specifically Richmond and Rosenberg, and bring business, residential and tourism growth to the area, according to the WFBMD website.
At a commission meeting in December, City Attorney Gary Smith said the resolution the commissioners are working to approve is part of a pointed system of using a management district to fund a residential development.
If approved, the 72 acres would be annexed from the city limits into the management district to provide space for 250 to 350 new single-family homes. The projected values of the homes is between $250,000 and $300,000, according to Vela.
The property is located south of Hwy. 90A and east of the Brazos River. Vela said adding acreage to the WFBMD would allow the district to assist in the development of the property for the homes by reimbursing the developer the costs of public infrastructure such as water mains, stormwater drainage and detention, roads, parks and green space.
“The reimbursement would be based on the developer providing for the design and construction of the improvements at the developer’s initial expense,” Vela said. “Once the constructed improvements create a sufficient tax base, the WFBMD could sell bonds to provide the funding for the reimbursement. The bonds would be repaid by the taxes that the WFBMD would assess on the property.”
The proposed tax rate is $0.77 per $100 valuation, and it would take about 30 years to pay off the bonds, Vela said.
“On a home [within the development] valued $250,000, the additional taxes would be $1,925 per year,” Vela said.
The development would not have a fiscal impact on other Richmond residents and could provide an increased tax base to help pay the expenses of the city.
“If the development fails to occur, then the specific area proposed for development would be impacted by an increased tax rate, [and] the increased tax rate could hinder other development of the property,” Vela said.
Commissioners will consider taking action on the resolution at the Feb. 19 meeting at the City Hall Annex. See the map below for a general overview of the location of the 72 acres.