Title
Consider and take action on an ordinance authorizing an amended and restated utility agreement with Richard K. Duncan, Sr. regarding Galveston County Municipal Utility District No. 74 (Director of Planning & Development)
Staff recommends approval on first and final reading.
Background:
Approval of this ordinance will authorize an amended and restated utility agreement with Richard K. Duncan ("RKD") regarding Galveston County Municipal Utility District No. 74. A municipal utility district (MUD) is a political subdivision of the State of Texas authorized by the Texas Commission on Environmental Quality (TCEQ) to provide water, sewage, drainage and other utility-related services within the MUD boundaries. The purpose of a MUD is to provide a developer with an alternative way to finance infrastructure within the MUD. A MUD sells bonds to generate income so that the MUD can reimburse a developer for authorized improvements. A MUD then repays its bond debt by assessing taxes on the property owners within the MUD.
On July 11, 2006, the City consented to the creation of Galveston County Municipal Utility District #74 ("MUD 74") through Resolution 2006-30. MUD 74 encompasses approximately 585.09 acres of undeveloped property within League City. On July 25, 2006, the City authorized a utility agreement with Galveston County Municipal Utility District 74, through Ordinance 2006-75, but the board of directors for MUD 74 was never appointed. When the development of MUD 74 stalled, a new developer, RKD, subsequently acquired all property interests in MUD 74. Once the board of directors for MUD 74 is appointed, RKD intends to assign his interest to MUD 74 through its board of directors.
RKD has requested that the City amend certain provisions of the 2006 utility agreement so that it can proceed with its project plan for MUD 74. A summary of the requested changes is listed as follows:
- changes the name of the developer
- ...
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