08-04-04 La Porte Redevelopment Authority Meeting minutes

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AGENDA ITEM 5: REVIEW AND DISCUSS THE REQUEST OF A PUBLIC IMPROVEMENT DISTRICT (PID) BY ARETE REAL ESTATE DEVELOPMENT Section D-5 of the Zone Guidelines provides that the City Council by ordinance may authorize the Board to provide for the management and administration of a Public Improvement District created within the Zone, as provided in such district's service plan required by law. The Tri- Party Agreement also provides for the management of a PID by the Redevelopment Authority. The Tri-Party Agreement defines a PID as a Public Improvement District(s) established by the City within the Zone and for which the City and Zone contract with the Authority to provide the assistance described in this Agreement. Essentially, the TIRZ/Redevelopment Authority could recommend the creation of a PID within boundaries of the TIRZ. The Authority would collect a special levy (in addition to taxes) from property owners within the PID. Mr. Fogarty is requesting an assessment that would equate to the difference between his initial request for (TIRZ) reimbursement and the Authority's approved reimbursement level (for internal water, sewer and drainage). That amount is estimated to be $3,331,728, which is 65% of internal water, sewer and drainage. (The Authority has approved a 35% reimbursement for these items ). The PID assessment for infrastructure is dependent on the choic~js-depe-rrdenton_thecheTce of a 15,20, 25, etc. year payout. The projected annual cost per home is $1,124 for 15 years, $843 for 20 years, and $674 for 25 years. Additionally, a PID may be a successful way of addressing future maintenance issues for the detention basins, perimeter fencing, landscaping, etc. Staff has been in discussions with Mr. Fogarty regarding these items. The collection of a PID assessment levied by the City would be easier and preferable than relying on a Homeowners' Association to undertake this kind of maintenance activity. As a starting point for discussion, a PID assessment for maintenance of $300lhouse would add about $0.12 to the tax burden for each property (in addition to the PID assessment for infrastructure).