Title
Consider and take action on a resolution approving an amended and restated interlocal agreement with the City of League City Section 4B Industrial Development Corporation for the use of 4B sales tax proceeds for eligible park facilities, including maintenance and operations costs and debt service reimbursement (Assistant City Manager - CFO)
Background:
If approved, this item will amend the existing interlocal agreement between the City and the City’s 4B development corporation.
The existing interlocal agreement addresses (1) reimbursement of debt service obligations incurred to construct Hometown Heroes Park and (2) up to 30 percent of annual corporation revenue if the balance of the special fund set aside for maintenance and operations of amateur athletics facilities falls below $1 million.
In addition to the current obligations for Hometown Heroes Park and the Hike & Bike Trails, the proposed amendment will allow for 4B to fund (1) reimbursement of debt service obligations incurred to construct Pat Hallisey Park, (2) future maintenance and operations of Pat Hallisey Park, (3) future maintenance and operations of Lobit Park, and (4) a minimum of 35% of the sales tax to be transferred from the corporation to the special fund set aside for maintenance and operations of amateur athletics facilities.
The change to the calculation of the percentage of the sales tax to be transferred from the corporation to the M&O fund will no longer be triggered by the balance of the fund balance but presented by City staff annually as part of the budget process. If approved, beginning fiscal year 2027, the percentage of 4B Funds accrued to be committed by the 4B Corporation to the M&O Fund will be projected for the following fiscal year based on annual budget estimates of the City, in no event less than thirty-five percent (35%) of 4B Funds accrued. Such projection will be based on an amount sufficient to pay existing Debt Service (both existing for Hometown Heroes Park and 2026 issue for Pat Hallisey Park), maintenance of the 4B Hike & Bike Trails, and the maintenance and operations of Hometown Heroes Park, Lobit Park, and Pat Hallisey Park, while still maintaining a positive 4B Fund end balance. The City will present a projected M&O Commitment to the 4B Corporation’s board of directors prior to September 30th to consider as part of its annual budget adoption. If the Board does not approve the projected M&O Commitment, an M&O Commitment of thirty-five percent (35%) will be transferred to the M&O Fund beginning October 1st of that fiscal year.
This amended agreement will be presented to the 4B Board for approval on Wednesday, July 15, 2026.
Pat Hallisey Park construction $49.5 million CO issuance timeline:
Notice of intent to issue certificates will be published on July 10 and 17 in the Galveston Daily News and on the City’s website. In addition, the Notice will be posted continuously on the City’s website prior to July 10th and remain posted through August 25th.
Bids are anticipated to be due on August 25, 2026 with project funding received on September 23, 2026.
Attachments:
1. Proposed Resolution
2. Exhibit A - Amended Interlocal with 4B
CONTRACT ORIGINATION: BRACEWELL LLP
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor - Financially Sustainable