Title
An ordinance approving and authorizing the issuance and sale of the City of Mesquite, Texas, Special Assessment Revenue Bonds, Series 2024 (Solterra Public Improvement District (PID) Improvement Area C-3 Project), approving and authorizing an Indenture of Trust, a Bond Purchase Agreement, Limited Offering Memorandum, a Continuing Disclosure Agreement, and other agreements and documents in connection therewith, making findings with respect to the issuance of such bonds, and providing an effective date.
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On April 5, 2021, the City Council adopted Resolution No. 15-2021 creating the Solterra Public Improvement District (PID) to finance certain authorized public improvements that confer a special benefit to property located within the PID. The PID boundaries include 1,424.398-acres of land to be developed as single-family residential. Per the PID Petition, the maximum aggregate principal amount of PID bonds to be issued is $295 million, and the Development Agreement, as amended, caps the total reimbursement of PID bonds, TIRZ revenues and assessments at $297,560,206. On July 17, 2023, the City issued PID bonds for the first phases of the development in Improvement Areas A-1, C-1, and C-2.
This bond sale is in the approximate par amount of $5,435,000.00 (subject to pricing) to reimburse the Developer, HC Solterra, LLC and Lennar Homes, the cost of authorized public improvements in Improvement Area C-3 (see attached location map). A Reimbursement Agreement for Area C-3 was executed with the Developer on July 17, 2023, which caps the total reimbursement of net bond proceeds and assessment revenue for Improvement Area C-3 in an amount not to exceed $9,526,606.00.
PID bonds will never constitute an indebtedness or general obligation of the City, but are special obligations of the City payable solely from the assessments on each property. Debt service of the PID bonds is paid entirely from assessments levied on property within the PID in annual installme...
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