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HomeMy WebLinkAboutO-2010-3275 First Amended/Restated Service/Assessment Plan for Lakes at Fairmont Greens Public Improvement District17 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: September 13, 2010 Requested By: John Joerns Department: City Manager's -OO ice Report: Resolution: Ordinance: X Exhibits: Ordinance and Exhibit A Exhibits: Letter to 65 La Porte Ltd., dated September 1, 2010 Budeet Source of Funds: Account Number: Amount Budgeted: Amount Requested Budgeted Item: YES NO Exhibits Strike & Underline of changes in original Ordinance and Exhibit A SUMMARY & RECOMMENDATION In September 2004, 65 La Porte Ltd., petitioned the City to create a Public Improvement District (PID). A PID was created and after discussion/negotiation with the developer the adopted service and assessment plan and related documents included two components; (1) an assessment for capital improvements and (2) an assessment for maintenance of PID related items. Recent discussions with the developer and our PID/TIRZ/Redevelopment Authority consultants considered re-structuring(s) of the PID up to and including deletion of the maintenance component for PID related items. The approach preferred by both the developer and staff is to delete the maintenance component with the capital component to be maintained. Approving this ordinance (with Exhibit A, First Amended and Restated Service and Assessment Plan) will remove the maintenance component, but keep in place the capital assessment. If approved what will be required as a follow up is a re -plat of Lakes of Fairmont Greens Section One, restructuring of the Developers Agreement (and its Exhibits) and a public hearing and approval of an ordinance levying the assessment for the capital component for Section One. The developer has been provided a letter acknowledging the follow up items that are required before building permits will be considered. ordinance approving the First Amended and Restated Service and Assessment Plan. Bottoms, City Manager Date '05 - ORDINANCE NO. 50 AN ORDINANCE OF THE CITY COUNCIL OF LA PORTE, TEXAS, APPROVING THE FIRST AMENDED AND RESTATED SERVICE AND ASSESSMENT PLAN FOR THE CITY OF LA PORTE LAKES AT FAIRMONT GREENS PUBLIC IMPROVEMENT DISTRICT; CONTAINING A REPEALING CLAUSE; CONTAINING AN OPEN MEETINGS CLAUSE; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of La Porte (the "City") is authorized pursuant to TEXAS LocAL GOVERNMENT CODE, chapter 372, as amended ("Chapter 372") to create public improvement districts for the purposes described therein; and WHEREAS, the City received a petition (the "Petition") requesting the creation of the City of La Porte Lakes at Fairmont Greens Public Improvement District (the "PID"), held a public hearing, and created the PID in accordance with the applicable provisions of Chapter 372; and WHEREAS, the City passed and adopted Resolution No. 2007-02 on January 22, 2007 establishing the Lakes at Fairmont Green Public Improvement District; and WHEREAS, the City passed and adopted Ordinance No. 3067 on March 10, 2008 approving the Service and Assessment Plan for the Lakes at Fairmont Green Public Improvement District; and WHEREAS, the City Council wishes to adopt an amended and restated Service and Assessment Plan with respect to the PID; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, that: Section 1. The facts recited in the preamble hereto are found to be true and correct. Section 2. Ordinance No. 3067 and the Service and Assessment Plan adopted thereby are hereby repealed in their entirety and that the First Amended and Restated Service and Assessment Plan attached to this Ordinance as Exhibit A is hereby approved and adopted on behalf of the PID, and the Mayor, City Secretary and any other appropriate officials of the City are hereby authorized to take all necessary actions on behalf of the City to implement the terms thereof in accordance therewith. 1 Section 3. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. PASSED AND APPROVED this the 2) day of ,-S'P�-ek(a-1(11 C)_ Attest: 1141) A Martha Gillett, City Secretary Approve as to form: Clark T. Askins, Assistant City Attorney 2 L`QiAs Rigby, Mayor EXHIBIT A First Amended and Restated Service and Assessment Plan Lakes at Fairmont Greens Public Improvement District City of La Porte, Harris County, Texas 1. Introduction This First Amended and Restated Service and Assessment Plan (the "Plan') is prepared and adopted in conformance with the Public Improvement District Assessment Act, codified as Chapter 372, Texas Local Government Code (the "Act"), and pursuant to Resolution No. 2007- 02 creating the Lakes at Fairmont Greens Public Improvement District (the "PID" or the "District"), La Porte (the "City"), Harris County, Texas. The creation of the PID was initiated by a petition (the "Creation Petition") submitted by property owners within the PID boundaries in compliance with the requirements of Section 372.005 of the Act. This Plan supersedes and replaces the Service and Assessment Plan adopted March 10, 2008 by Ordinance No. 3067 and specifically removes the supplemental services component of the PID. 2. Boundaries The boundaries of the PID are as indicated in the map attached as Exhibit A. 3. Administration of the District Administration of the District is the responsibility of the City Council of the City of La Porte, Texas but to the extent allowed by law, the City may contract with a private sector company to carry out all or part of the City responsibilities as well as day-to-day operations and administration of the District. 4. Public Improvements a. The Public Improvements to be financed and constructed hereby (the "Public Improvements") serve to promote the construction of single-family units ("SFU"). The Public Improvements included in the Plan will confer a special benefit to properties within the Public Improvement District and will consist of the construction of site work, water lines, sanitary sewer lines, storm sewers, erosion control, contingency provisions, engineering services, financing costs, and administrative and legal services for the PID. The Public Improvements will be pre -funded by the developer of the residential subdivision within the PID. Under the Development Agreement executed between the Developer and the City, the Developer will be entitled to receive reimbursement of up to 35% of the Public Improvement costs subject to the limitations contained in the Agreement. L Lakes at Fairmont Greens Lakes at Fairmont Greens Subdivision is being developed by 65 La Porte, Ltd. and will contain an estimated 462 single-family units within the Public Improvement District. The City of La Porte, Lakes at Fairmont Greens Public Improvement District Public Improvements authorized under this Plan for Lakes at Fairmont Greens, and the estimated costs thereof, are described below: LAKES AT FAIRMONT GREENS Public Improvement Costs PUBLIC IMPROVEMENT ESTIMATED COST PID COSTS 35% Site Work $479,886 $167,960 Water Lines $452,352 $158,323 Sanitary Sewer $963,157 $337,105 Storm Sewer $1,557,746 $545,211 NPDES/ Erosion Control $274,771 $96,170 Contingency $559,187 $195,715 Engineering $643,065 $225,073 PID Creation Costs (100%) $30,000 $30,000 Subtotal $4,960,164 $1,755,557 Financing Cost $1,320,831 Administration & Legal Expenses $213,841 TOTAL $3,290,229 5. Construction of Public Improvements Design and construction of all Public Improvements will be performed to City specifications, and all construction shall be bid as required by the City. The Plan will be reviewed annually in accordance with the provisions of Chapter 372 of the Local Government Code and will include a review of the budgets, expenditures and revenues of the District. Additionally, the Plan will be reviewed for the purpose of establishing the installments for assessments based upon the costs for Public Improvements and the financial needs of the District. 6. Conveyance of Improvements to the City Upon completion of the improvements, and final inspection and acceptance of the Public Improvements by the City, the Developers will convey all rights to the improvements to the City or homeowner's association as applicable, subject to the Developer's rights of reimbursement described in the Development Agreement executed between the Developer and the City. 7. Authorized Improvements The area within the PID that is covered by this Service and Assessment Plan will be developed as single family residential. This Plan designates the Public Improvements required for the growth and development of the land within the PID. The goal of this Plan is to provide City of La Porte, Lakes at Fairmont Greens Public Improvement District 2 sufficient certainty for the owners of land within the PID to proceed with the financing and construction of the necessary Public Improvements, while allowing for sufficient flexibility to meet the needs of the PID over the life of the development of residential properties within the PID. The construction of the Public Improvements authorized herein began in calendar year 2007. The proposed phasing is estimated and may vary. The cost estimates provided above are expressed in calendar year 2007 dollars. The actual costs of the Public Improvements will be determined by an audit of the developer's costs. 8. Advance Financing by Developer The Developer will advance the funds for construction of the Public Improvements and will be entitled to repayment pursuant to the Development Agreement executed between the City and the Developer. Although the Public Improvements are required for the growth and development of the PID, it is not necessary for them to be built simultaneously. 9. Apportionment of Costs Payment of assessments, if any, on property owned by exempt jurisdictions other than the City shall be established by contract. 10. Levy of Assessments a. Public Improvement Costs The plan of assessment contemplates that the public improvement cost assessment will be levied in phases. The assessment year shall be concurrent with the City's tax year. The assessments against property may be paid in annual installments based on an amortization of not more than fifteen (15) years plus the period between the effective date of the assessment ordinance and the date of the first installment. The interest rate on financed capital assessments is eight percent (8.00%) per annum. The assessments shall be based upon the actual cost of the Public Improvements plus those related costs as deemed reimbursable by the City. The cost of the Public Improvements will consist of the costs to construct site work, storm sewers, water lines, sanitary sewers, erosion control, related professional design and engineering fees, administrative and legal services and interest payable to the Developer pursuant to the Development Agreement. L Lakes at Fairmont Greens The Plan estimates the following assessments for residential properties in Lakes at Fairmont Greens according to the cost of the Public Improvements. The total assessment can be paid upfront at the time the property containing a habitable structure is purchased or at any time thereafter. The assessment can also be financed and paid in equal annual installments over fifteen (15) years as prescribed below. City of La Porte, Lakes at Fairmont Greens Public Improvement District 3 herein. The following assessment will apply to all lots and is payable in the manner described Assessment - Public Improvement Costs (Capital Assessment) Total Assessment $0.5273 per square foot of residential property Financed Assessment $0.0616 per square foot of residential property per year B. Levy and collection. Notice of the levy of each assessment will be given as provided in Chapter 372 of the Local Government Code. The assessment levy statement will be sent to each property owner in the District, and the installment of the assessment levy will be due and payable at the same time property taxes are due and payable to the City. Financed Public Improvement Cost assessments (capital assessments) shall bear interest at eight percent (8.00%) per annum. The first installment of an assessment against a particular property shall be due with respect to the calendar year following the date such property has been improved with a habitable structure as evidenced by the issuance of a certificate of occupancy. The City will invoice each owner of property for the installment payment in conjunction with the City's annual property tax bill, and the installments shall be due and payable, and incur penalty and interest for unpaid installments in the same manner as provided for the City's property taxes. Thereafter, subsequent installments shall be due in the same manner in each succeeding calendar year until the assessment together with interest as provided herein has been paid in full. The owner of assessed property may pay at any time the entire assessment then due on each property, with interest accrued on the assessment through the date of payment. Failure of an owner to receive an invoice shall not relieve the owner of the responsibility of for the assessment. A lien will be established against the property assessed effective as of the date of the ordinance levying the assessment, privileged above all other liens, including prior mortgage liens, to the extent allowed by Section 372.018(b) of the Local Government Code. Assessment installments shall be considered delinquent on the same date as the City's property taxes. Delinquent assessments or installments shall incur the costs of collection. If practicable, the assessment shall be included on the City property tax statement. Notwithstanding the above, the assessment lien shall be perfected immediately as to the entire assessment, but may be executed only with respect to the amounts then due or past due for current or prior installments or final payment. Assessments are personal obligations of the person owning the property assessed in the year an installment payment becomes due, and only to the extent of such installment(s). The owner of assessed property may pay at any time the entire assessment then due on each property, with interest accrued on the assessment through the date of payment. City of La Porte, Lakes at Fairmont Greens Public Improvement District 4 EXHIBIT A rt EXHIBIT City of La Porte, Lakes at Fairmont Greens Public Improvement District 0 Tab .t ftkM t deme September 1, 2010 65 La Porte, Ltd. 340 N. Sam Houston Pkwy. E., Suite 100 Houston, TX 77050 Attn: Mr. Jim Larson City of La Porte RE: FIRST AMENDED and RESTATED SERVICE and ASSESSMENT PLAN Dear Mr. Larson, Established 1892 Per our meeting of August 18, 2010, the La Porte City Council will consider an ordinance at their September 13`h meeting approving an Amended Service and Assessment Plan for the Lakes at Fairmont Greens Public Improvement District (PID). The amended plan will remove the supplemental services and references to the Developers Agreement, but keep in place the Public Improvements assessment. If City Council approves this action, the City and 65 La Porte, Ltd. will need to follow up with the proposed repiat and a modified Developers Agreement (including its exhibits) removing references to maintenance of infrastructure by the (PID) . These follow up items will need to be completed before issuance of any building permits in Section One and before the Public Hearing and levying of an assessment against Section One. We believe this arrangement will benefit both 65 LaPorte, Ltd. and the City by simplifying the Public Improvement District agreement and placing the maintenance In the hands of the Homeowner's Association. We thank you for your efforts and cooperation on this matter. Please acknowledge by having Dr. Reddy sign and return this letter. Sin rel - ohnloerns Assistant City anager cc: Ron Bottoms, City Manager Tim Tietjens, Planning Director Acknowledged Dr. Malladi S. Reddy, M.D. — Principal 65 La Porte, Ltd. 340 N. Sam Houston Pkwy, E., Suite 100 Houston, TX 77060 C/CLP Shared Folder/CMO— TIRZ—Amended Service and Assessment Plan for Lakes at Fairmont Green PID 604 W. Fairmont Pkwy. • La Porte, Texas 77571 • (281) 471-5020 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF LA PORTE, TEXAS, APPROVING THE FIRST AMENDED AND RESTATED SERVICE AND ASSESSMENT PLAN FOR THE CITY OF LA PORTE LAKES AT FAIRMONT GREENS PUBLIC IMPROVEMENT DISTRICT; CONTAINING A REPEALING CLAUSE; CONTAINING AN OPEN MEETINGS CLAUSE; PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of La Porte (the "City") is authorized pursuant to TExAS LocAL GOVERNMENT CODE, chapter 372, as amended ("Chapter 372") to create public improvement districts for the purposes described therein; and WHEREAS, the City received a petition (the "Petition") requesting the creation of the City of La Porte Lakes at Fairmont Greens Public Improvement District (the "PID"), held a public hearing, and created the PID in accordance with the applicable provisions of Chapter 372; and WHEREAS, the City passed and adopted Resolution No. 2007-02 on January 22, 2007 establishing the Lakes at Fairmont Green Public Improvement District; and WHEREAS, the City passed and adopted Ordinance No. 3067 on March 10, 2008 approving the Service and Assessment Plan for the Lakes at Fairmont Green Public Improvement District; and WHEREAS, the City Council wishes to adopt an amended and restated Service and Assessment Plan with respect to the PID; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, that: Section 1. The facts recited in the preamble hereto are found to be true and correct. Section 2. Ordinance No. 3067 and the Service and Assessment Plan adopted thereby are hereby repealed in their entirety and that the First Amended and Restated Service and Assessment Plan attached to this Ordinance as Exhibit A is hereby approved and adopted on behalf of the PID, and the Mayor, City Secretary and any other appropriate officials of the City are hereby authorized to take all necessary actions on behalf of the City to implement the terms thereof in accordance therewith. 1 Section 3. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter thereof has been discussed, considered and formally acted upon. City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 4. This Ordinance shall be effective upon its passage and approval. PASSED AND APPROVED this the day of 2010. Attest: Martha Gillett, City Secretary Approved as to form: Clark T. Askins, Assistant City Attorney 2 Louis Rigby, Mayor EXHIBIT A First Amended and Restated Service and Assessment Plan Lakes at Fairmont Greens Public Improvement District City of La Porte, Harris County, Texas 1. Introduction This First Amended and Restated Service and Assessment Plan (the "Plan') is prepared and adopted in conformance with the Public Improvement District Assessment Act, codified as Chapter 372, Texas Local Government Code (the "Act"), and pursuant to Resolution No. 2007- 02 creating the Lakes at Fairmont Greens Public Improvement District (the "PID" or the "District"), La Porte (the "City"), Harris County, Texas. The creation of the PID was initiated by a petition (the "Creation Petition') submitted by property owners within the PID boundaries in compliance with the requirements of Section 372.005 of the Act. This Plan supersedes and replaces the Service and Assessment Plan adopted March 10, 2008 by Ordinance No 3067 and specifically removes the supplemental services component of the PID. 2. Boundaries The boundaries of the PTD are as indicated in the map attached as Exhibit A. 3. Administration of the District Administration of the District is the responsibility of the City Council of the City of La Porte, Texas but to the extent allowed by law, the City may contract with a private sector company to carry out all or part of the City responsibilities as well as day-to-day operations and administration of the District. 4. Public Improvements and Supplemental Sefv a. The Public Improvements to be financed and constructed hereby (the "Public Improvements') serve to promote the construction of single-family units ("SFU"). The Public Improvements included in the Plan will confer a special benefit to properties within the Public Improvement District and will consist of the construction of site work, water lines, sanitary sewer lines, storm sewers, erosion control, contingency provisions, engineering services, financing costs, and administrative and legal services for the PID. The Public Improvements will be pre -funded by the developer of the residential subdivision within the PID. Under the Development Agreement executed between the Developer and the City, the Developer will be entitled to receive reimbursement of up to 35% of the Public Improvement costs subject to the limitations contained in the Agreement. City of La Porte, Lakes at Fairmont Greens Public Improvement District I. Lakes at Fairmont Greens Lakes at Fairmont Greens Subdivision is being developed by 65 La Porte, Ltd. and will contain an estimated 462 single-family units within the Public Improvement District. The Public Improvements authorized under this Plan for Lakes at Fairmont Greens, and the estimated costs thereof, are described below: LAKES AT FAIRMONT GREENS Public Improvement Costs PUBLIC IMPROVEMENT ESTIMATED COST PID COSTS 35% Site Work $479,886 $167,960 Water Lines $452,352 $158,323 Sanitary Sewer $963,157 $337,105 Storm Sewer $1,557,746 $545,211 NPDES/Erosion Control $274,771 $96,170 Contingency $559,187 $195,715 Engineering $643,065 $225,073 PID Creation Costs (100%) $30,000 $30,000 Subtotal $4,960,164 $1,755,557 Financing Cost $1,320,831 Administration & Legal Expenses $213,841 TOTAL $3,290,229 5. Construction of Public Improvements Design and construction of all Public Improvements will be performed to City specifications, and all construction shall be bid as required by the City. The Plan will be reviewed annually in accordance with the provisions of Chapter 372 of the Local Government Code and will include a review of the budgets, expenditures and revenues of the District. Additionally, the Plan will be reviewed for the purpose of establishing the installments for assessments based upon the costs for Public Improvements and the financial needs of the District. 6. Conveyance of Improvements to the City Upon completion of the improvements, and final inspection and acceptance of the Public Improvements by the City, the Developers will convey all rights to the improvements to the City or homeowner's association as applicable, subject to the Developer's rights of reimbursement described in the Development Agreement executed between the Developer and the City. City of La Porte, Lakes at Fairmont Greens Public Improvement District 2 7. Authorized Improvements The area within the PID that is covered by this Service and Assessment Plan will be developed as single family residential. This Plan designates the Public Improvements required for the growth and development of the land within the PID. The goal of this Plan is to provide sufficient certainty for the owners of land within the PID to proceed with the financing and construction of the necessary Public Improvements, while allowing for sufficient flexibility to meet the needs of the PID over the life of the development of residential properties within the PID. The construction of the Public Improvements authorized herein wiu be began in calendar year 2007. The proposed phasing is estimated and may vary. The cost estimates provided above are expressed in calendar year 2007 dollars. The actual costs of the Public Improvements will be determined by an audit of the developer's costs. 8.9: Advance Financing by Developer The Developer will advance the funds for construction of the Public Improvements and will be entitled to repayment pursuant to the Development Agreement executed between the City and the Developer. Although the Public Improvements are required for the growth and development of the PID, it is not necessary for them to be built simultaneously. 9.1-0: Apportionment of Costs Payment of assessments, if any, on property owned by exempt jurisdictions other than the City shall be established by contract. 10.14 Levy of Assessments a. Public Improvement Costs The plan of assessment contemplates that the public improvement cost assessment will be levied in phases. The assessment year shall be concurrent with the City's tax year. The assessments against property may be paid in annual installments based on an amortization of not more than fifteen (15) years plus the period between the effective date of the assessment ordinance and the date of the first installment. The interest rate on financed capital assessments is eight percent (8.00%) per annum. The assessments shall be based upon the actual cost of the Public Improvements plus those related costs as deemed reimbursable by the City. The cost of the Public Improvements will consist of the costs to construct site work, storm sewers, water lines, sanitary sewers, erosion control, related professional design and engineering fees, administrative and legal services and interest payable to the Developer pursuant to the Development Agreement. City of La Porte, Lakes at Fairmont Greens Public Improvement District L Lakes at Fairmont Greens The Plan estimates the following assessments for residential properties in Lakes at Fairmont Greens according to the cost of the Public Improvements. The total assessment can be paid upfront at the time the property containing a habitable structure is purchased or at any time thereafter. The assessment can also be financed and paid in equal annual installments over fifteen (15) years as prescribed below. herein. The following assessment will apply to all lots and is payable in the mariner described Assessment - Public Improvement Costs (Capital Assessment) Total Assessment $0.5273 per square foot of residential property Financed Assessment $0.0616 per square foot of residential property per year B. Levy and collection. Notice of the levy of each assessment will be given as provided in Chapter 372 of the Local Government Code. The assessment levy statement will be sent to each property owner in the District, and the installment of the assessment levy will be due and payable at the same time property taxes are due and payable to the City. Financed Public Improvement Cost assessments (capital assessments) shall bear interest at eight percent (8.00%) per annum. The first installment of an assessment against a particular property shall be due with respect to the calendar year following the date such property has been improved with a habitable structure as evidenced by the issuance of a certificate of occupancy. The City will invoice each owner of property for the installment payment in conjunction with the City's annual property tax bill, and the installments shall be due and payable, and incur penalty and interest for unpaid installments in the same manner as provided for the City's property taxes. Thereafter, subsequent installments shall be due in the same manner in each succeeding calendar year until the assessment together with interest as provided herein has been paid in full. The owner of assessed property may pay at any time the entire assessment then due on each property, with interest accrued on the assessment through the date of payment. Failure of City of La Porte, Lakes at Fairmont Greens Public Improvement District 4 an owner to receive an invoice shall not relieve the owner of the responsibility of for the assessment. A lien will be established against the property assessed effective as of the date of the ordinance levying the assessment, privileged above all other liens, including prior mortgage liens, to the extent allowed by Section 372.018(b) of the Local Government Code. Assessment installments shall be considered delinquent on the same date as the City's property taxes. Delinquent assessments or installments shall incur the costs of collection. If practicable, the assessment shall be included on the City property tax statement. Notwithstanding the above, the assessment lien shall be perfected immediately as to the entire assessment, but may be executed only with respect to the amounts then due or past due for current or prior installments or final payment. Assessments are personal obligations of the person owning the property assessed in the year an installment payment becomes due, and only to the extent of such installment(s). The owner of assessed property may pay at any time the entire assessment then due on each property, with interest accrued on the assessment through the date of payment. City of La Porte, Lakes at Fairmont Greens Public Improvement District EXHIBIT A Aft EXHIBIT City of La Porte, Lakes at Fairmont Greens Public Improvement District O L& .t