Title
Consider and take action on an ordinance approving a service and assessment plan and levying an assessment for and on behalf of City of League City Public Improvement District #1, Section 5B and the remaining commercial property tracts (Deputy City Attorney)
Staff recommends approval on first and final reading.
Background:
Approval of this ordinance will approve a service and assessment plan and levying an assessment for and on behalf of City of League City Public Improvement District #1 (“PID 1”), Section 5B and the remaining commercial tracts of property.
Under Chapter 372 of the Texas Local Government Code, a public improvement district may be established within the city limits or the extraterritorial jurisdiction of a municipality for the reimbursement of expenses associated with improvement projects in the public improvement District. PID 1 was created on November 18, 1997 to finance improvements in the Magnolia Creek subdivision.
Local Government Code 372.016 states that after the total cost of an improvement is determined, the City shall prepare a proposed assessment roll. The roll must state the assessment against each parcel of land in the district, as determined by the method of assessment chosen by the municipality. The actual PID 1 assessment rate is based on two components: master costs and neighborhood costs. The master costs are shared by all sections of PID 1. As the sections of PID 1 were developed, each section was responsible for paying for its share of the master costs.
For this assessment levy, the City is considering the remaining unassessed sections of PID 1, which include the remaining residential section, the undeveloped commercial section and the commercial portion where the Lighthouse facility is located.
Remaining Residential Section:
The residential properties in this section will be assessed at a rate of $2.28 per square foot over a 15-year period beginning on January 31, 2021. The assessment roll for each residential property is listed in the attached 2019 Service and Assessment Plan.
Commercial Section #1 - Undeveloped Property
This property consists of approximately 11.48 acres of undeveloped land located at 1333 ½ Bay Area Boulevard (Property ID 512377/Geographic ID 4896-0001-0001-000). It has always been the intent of PID 1 that property owners will only begin paying assessments once the property has been developed. Since this property is undeveloped, this property will not pay any assessments until a final plat has been filed and recorded. When this property is developed, the property owners will owe their share of the remaining master costs which are $346,759.81 payable over a 15-year period. In an effort to facilitate the conclusion of PID 1 assessment rate process, the Developer has agreed to apply a $86,056.97 reduction to the aggregate amount of master costs owed by this property owner. There will be no neighborhood costs attributable to this the property
Commercial Section #2 - 4496 W. League City Parkway (Children's Lighthouse):
This commercial property consists of 1.86 acres located at 4496 W. League City Parkway (Property ID 501768/Geographic ID 4704-0001-0001-000). This property is the current location of the Children's Lighthouse day care facility. This property will be assessed a total of $56,182.32 over a 15-year period beginning on January 31, 2021. In an effort to facilitate the conclusion of PID 1 assessment rate process, the Developer has agreed to apply a $13,943.03 reduction to the aggregate amount of master costs owed by this property owner. There will be no neighborhood costs attributable to this property.
The notice, as required by Chapter 372 of the Local Government Code, was published in the Galveston Daily News on January 30, 2019. The assessment roll is filed with the City Secretary and notice has been sent to the last known address of all property owners.
Staff requests approval on first and final reading.
ATTACHMENTS:
1. Data Sheet
2. Proposed Ordinance
3. 2019 Service and Assessment Plan
FUNDING
{x} NOT APPLICABLE
STRATEGIC PLANNING
{x} NOT APPLICABLE