Title
Consider/Discuss/Act on a Resolution Consenting to the Creation of a Municipal Management District for the Honey Creek Development
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
(1A: Establish regional infrastructure incentives to increase economic growth)
MEETING DATE: December 20, 2022
DEPARTMENT: Development Services
CONTACT: Kim Flom, AICP, PLA, Assistant City Manager
Michael Quint, Executive Director of Development Services
ITEM SUMMARY:
• Republic Property Group, the developer for the Honey Creek property which is approximately 1,648 acres located within the city’s northwest sector (west of US Highway 75 and north of US Highway 380), is seeking the City Council’s approval of a resolution formally consenting to the creation of a Municipal Management District (MMD) subject to specific conditions being satisfied.
• In order to create a MMD (“the District”) via the legislative process at the State Capital in Austin, TX, the developer first needs a City Council resolution consenting the creation of the district. The State Legislature will not approve a bill creating a Municipal Management District if the city in which it will be located is not supportive. If the consent resolution is approved by the City Council, the developer will create a bill and seek to get it approved during the upcoming legislative session in 2023.
• The proposed resolution consenting to the creation of the District is conditioned on the City Council annexing any Honey Creek property located within the Extraterritorial Jurisdiction (ETJ), approving a (re)zoning request for the entire Honey Creek property, and execution of a development agreement governing the entire property.
• If these conditions are not satisfied, the District cannot be created and the bill, if adopted by the State Legislature, will essentially become void.
• The consent resolution, if approved by the City Council, essentially affords the city and the developer more time to work out the details which will govern the development of the Honey Creek property.
• Like a PID, MMD is a mechanism that would expedite the development of the Honey Creek property earlier than would occur naturally via the organic extension of infrastructure. Infrastructure constructed in this area will also support the development of the surrounding ETJ properties.
BACKGROUND INFORMATION:
• Republic Property Group presented the concept of a Municipal Management District to the City Council at the December 6, 2022, work session. At that time, several City Council members expressed preliminary support for exploring the creation of a special district.
• A Municipal Management District is a type of special district authorized by state law to assist with the construction of improvement projects. Improvement projects must confer a “special benefit” to properties located within the district.
• Generally, a MMD is somewhat of a hybrid between a Public Improvement District (PID) and a Municipal Utility District (MUD). The MMD will establish a board, comprised of residents within the District, which has bonding authority (similar to a MUD) and which can levy an assessment in addition to the city’s taxes (similar to a PID) but relieves the city of any obligation to administer or enforce terms of the District (similar to a MUD).
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A