On Feb. 23, the Shavano Park City Council unanimously approved the creation of three additional public improvement district, or PID, funds, which will be used to handle the money for the Shavano Park 1604 Public Improvement District.
The gist
Assistant City Manager Curtis Leeth said the new funds will each have its own role in managing the finances of the development. As part of the agreement, Bitterblue formed a new legal entity, known as PID LTD, that will be used to enter into the agreements with the city.
“We’re creating three PID funds: one where the assessments are collected to pay debt, one where bond proceeds sit until they’re used to reimburse public infrastructure, and one that’s only used if there’s no bond, to pay the developer back over time from assessments,” Leeth said.
Three new PID funds:
- PID Pledge Revenue Fund will receive annual PID assessments to pay PID bond debt, if bonds are issued.
- PID Project Fund will hold bond proceeds used to reimburse the developer for eligible public infrastructure.
- PID Reimbursement Fund will hold assessment revenues and reimburse the developer year by year if they choose not to issue bonds.
Additionally, Leeth said future property owners within the PID will pay a special assessment, which will repay the public infrastructure costs and will either service the PID bonds or reimburse the developer on a cash-flow basis from annual assessments.
City benefits in the development agreement include:
- The developer, Bitterblue, is responsible for the construction of the public road, known as Pondpark, including sidewalks and bike lanes. Bitterblue is also responsible for the construction of a hike and bike trail and a recreational area as well as public utilities.
- Municipal land amenities will be maintained by property owners associations within the PID.
- The agreement ensures that public infrastructure is developed in accordance with city standards and inspections.
- The developer will provide performance and payment bonds to assure that authorized improvements are constructed as proposed.
- The developer will provide a two-year maintenance bond after the construction of public facilities are complete.
The background
Located at the intersection of Loop 1604 and Pond Hill Road, the 22-acre mixed-use development will include retail, a hotel, townhomes and a park connected to trailheads. Design elements will include a dog park, tandem pickleball courts, three trailboards and 52 off-street parking spaces.
Shavano Park 1604 Public Improvement District will include:
- 5.3 acres of commercial
- 2.9 acres for a hotel
- 30-40 townhomes
- 6 acres of recreational space
The project is estimated to cost roughly $4.5 million, and has $6 million in funds earmarked for construction costs.
Stay tuned
Development on the PID’s public infrastructure is estimated to begin in the spring.
