Title
A resolution approving a Reimbursement Agreement for Improvement Areas A-2, A-3.1, A-3.2 and A-4 of the Solterra Public Improvement District.
Body
On April 5, 2021, the City Council passed Resolution No. 15-2021 creating the Solterra Public Improvement District (PID). The Developer, Huffines Communities, is close to completing certain segments of public improvements for Improvement Areas A-2, A-3.1, A-3.2 and A-4 and a reimbursement agreement must be executed before City Engineering staff accepts public improvements in these areas.
The proposed resolution and reimbursement agreement specifies the manner in which property assessment revenue will be applied to the amount of authorized public improvement costs that Huffines has advanced and is entitled for reimbursement, with interest, in accordance with the Development Agreement, Service and Assessment Plan (SAP) and State law. These authorized public improvement costs are summarized as follows:
Improvement Area A-2
Roadway Improvements $3,480,320
Sanitary Sewer System Improvements 1,635,100
Storm Sewer System Improvements 2,069,100
Water Distribution System Improvements 1,129,500
Public Landscaping 790,800
Soft Costs 1,205,550
Zone A Infrastructure 953,482
Major Infrastructure 1,010,651
Bond Issuance Costs 1,965,510
Administrative Costs 40,000
Total $14,280,013
Improvement Area A-3.1
Roadway Improvements $2,797,700
Sanitary Sewer System Improvements 1,289,000
Storm Sewer System Improvements 1,675,250
Water Distribution System Improvements 857,300
Public Landscaping 100,800
Soft Costs 1,044,500
Zone A Infrastructure 972,489
Major Infrastructure 1,030,797
Bond Issuance Costs 1,869,365
Administrative Costs 40,000
Total $11,677,201
Improvement Area A-3.2
Roadway Improvements $171,780
Sanitary Sewer System Improvements 8,400
Storm Sewer System Improvements 3,660
Water Distribution System Improvements 87,600
Public Landscaping 123,000
Soft Costs 144,580
Zone A Infrastructure 183,637
Major Infrastructure 194,647
Bond Issuance Costs 183,000
Administrative Costs 40,000
Total $1,140,304
Improvement Area A-4
Roadway Improvements $2,092,050
Sanitary Sewer System Improvements 991,800
Storm Sewer System Improvements 1,500,600
Water Distribution System Improvements 741,700
Public Landscaping 432,800
Soft Costs 819,750
Zone A Infrastructure 597,737
Major Infrastructure 633,575
Bond Issuance Costs 1,213,890
Administrative Costs 40,000
Total $9,063,902
The source of revenue for the reimbursements will be a combination of net construction proceeds from the PID bond sale for Improvement Areas A-2, A-3.1, A-3.2, and A-4, and assessment revenue collected on properties within Improvement Areas A-2, A-3.1, A-3.2, and A-4 after annual PID bond debt service payment obligations are met. A map illustrating Solterra Improvement Areas A-2 (216 lots); A-3.1 (199 lots); A-3.2 (36 lots); and A-4 (153 lots) is attached for reference.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Map of Improvement Area A-2
Map of Improvement Area A-3.1
Map of Improvement Area A-3.2
Map of Improvement Area A-4
Drafter
Ted Chinn
Head of Department
Ted Chinn