During its Jan. 26 meeting, the Shavano Park City Council was briefed on two 1604 Public Improvement District ordinances, which would establish a reimbursement agreement and a development agreement between the city and developers Bitterblue.
The setup
Curtis Leeth, assistant city manager, said the reimbursement agreement would create three additional Public Improvement District, or PID, funds, while the development agreement defines what the developer must build as part of the public improvement district.
The reimbursement agreement sets the rules for reimbursing the developers and creates three new PID funds.
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.
The reimbursement agreement also defines how the developers will be paid. The city will act as an intermediary that will place PID assessments and bond proceeds into the newly created dedicated funds that pay the developer. Leeth emphasized that using this payment structure will not obligate taxpayers for the cost of the development.
“Regardless if the bond is issued, the Bexar County tax assessor is going to be collecting the annual assessments and putting deposits in these city accounts, which is divorced from the rest of the city funds,” Leeth said.
In the development agreement, the city clarifies what Bitterblue must build as part of the public improvement district.
Public improvements include:
- A 60-foot right of way
- A 40-foot road complete with bike lanes and sidewalks
- A hike-and-bike trail, connecting to a city park
- Public utilities, such as water and wastewater, built to city standards
Leeth said the development agreement gives Shavano Park control over quality and acceptance, allowing city engineers to inspect and approve the agreed upon public amenities. The agreement will also provide a backstop in case the developer fails to build the agreed upon facilities, which will allow the city to take over the public amenities project.
Looking ahead
The ordinances will be brought back to City Council in February after Bitterblue has formed its new ownership entity that will own development assets in the 1604 Public Improvement District.
