Town officials are allocating more money for infrastructure improvements at the Gates of Prosper.
The developer behind the Gates of Prosper, Blue Star Land Development, can submit reimbursement requests for eligible projects like roads and parks, according to an agreement with the town.
Blue Star Land’s original agreement covered up to $58 million in reimbursements for construction costs, or up to $93 million including interest, according to a presentation by Assistant Town Manager Chuck Ewings.
Prosper Town Council increased the maximum construction payment from $58 million to $76.7 million at a Nov. 10 meeting.
The $18.7 million increase will not affect the total maximum construction payment plus interest, which will remain steady at $93 million, Ewings said.
A snapshot
As of Nov. 10, Blue Star Land has requested reimbursements for $52.6 million in construction costs, according to town documents.
Blue Star Land is eligible for reimbursements for certain public improvements, such as building a segment of Richland Boulevard.
Town officials expect Blue Star Land to request an additional $24.1 million in reimbursements for eligible projects, including:
Lovers Lane Bridge
Section of Main Street
Section of Gates Parkway
First Street drainage
Parks and open space
Since town officials approved the agreement with Blue Star Land in 2014, there’s been “a great deal of escalation in costs” related to construction, Ewings said.
Increasing the construction budget from $58 million to $76.7 million will help cover those added costs, he said.
Explained
The town funds its reimbursements to Blue Star Land through a tax increment reinvestment zone, or TIRZ.
A TIRZ lets local governments use a portion of future increases in property tax revenue to fund public improvements within the zone.
Prosper Town Council created TIRZ No. 1 to incentivize growth near the intersection of US 380 and Preston Road, according to town documents.
TIRZ No. 1 is funded by a combination of property and sales tax collected within the boundaries of the special district:
Looking ahead
Town officials expect to make the final payment to Blue Star Land in September 2033, per Ewings’s presentation.
Once everything is paid off, the TIRZ No. 1 board will have the option to dissolve the TIRZ, Ewings said.
If the TIRZ is dissolved, the town’s portion of future property and sales tax revenue will go to its general fund, he said.
