Title
Consider/Discuss/Act on Assignments of Municipal Utility District 1’s Creation and Operation and Municipal Utility District 2’s Creation and Operation, the Development Agreement, and the Park Development and Disbursement Agreement from CH-B Trinity Falls, L.P. to Trinity Falls Holdings, L.P.
Summary
COUNCIL GOAL: Direction for Strategic and Economic Growth
MEETING DATE: November 1, 2016
DEPARTMENT: Development Services Division
CONTACT: Michael Quint, Executive Director of Development Services
Barry Shelton, AICP, Assistant City Manager
Mark Houser, City Attorney
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the proposed assignments.
ITEM SUMMARY:
• Staff recommends that the City Council approve the following proposed items:
o Assignment of rights and responsibilities of Municipal Utility District (MUD) 1 from CH-B Trinity Falls, L.P. to Trinity Falls Holdings, L.P.
o Assignment of rights and responsibilities of Municipal Utility District (MUD) 2 from CH-B Trinity Falls, L.P. to Trinity Falls Holdings, L.P.
o Assignment of rights and responsibilities of the Development Agreement, as amended, from CH-B Trinity Falls, L.P. to Trinity Falls Holdings, L.P.
o Assignment of rights and responsibilities of the Park Development and Disbursement Agreement, as amended, from CH-B Trinity Falls, L.P. to Trinity Falls Holdings, L.P.
• Trinity Falls was recently sold by Castle Hills Partners (CH-B Trinity Falls, L.P.) to Johnson Development (Trinity Falls Holdings, L.P.). In accordance with the government development agreement, if the development’s ownership is changed, obligations and rights granted under the development agreement may be assigned to the new ownership entity with the City of McKinney’s consent. If approved by the City Council, the four assignment documents that are being proposed will officially transfer the rights and responsibilities to Johnson Development.
BACKGROUND INFORMATION:
• Trinity Falls is a Municipal Utility District (MUD) established in accordance with state law in McKinney’s ETJ. The master planned community consists of approximately 1,600 acres of land and is anticipated to contain approximately 4,000 single family residential dwelling units and some limited non-residential uses.
• The Trinity Falls MUD is governed by a development agreement that was executed by the City of McKinney in December of 2012. The governing development agreement was amended in February of 2014. The proposed amendment to the development agreement represents the second amendment to the 2012 development agreement.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A