Title
An ordinance approving and authorizing the issuance and sale of the City of Mesquite, Texas, Special Assessment Revenue Bonds, Series 2025 (Solterra Public Improvement District Improvement Area A-2 - A-4 Projects), 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.
Body
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 1,424.398-acre single-family residential district. 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 developer reimbursement of PID bond proceeds, 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 ($33,425,000), C-1 ($7,000,000), and C-2 ($3,525,000), and the City issued bonds for Improvement Area C-3 ($5,435,000) on October 7, 2024.
This bond sale is in the approximate par amount of $32,677,000.00 (subject to pricing) to reimburse the Developer costs of authorized public improvements in Improvement Areas A-2, A-3.1, A-3.2 and A-4 (see attached location maps). A Reimbursement Agreement for Areas A-2, A-3.1, A-3.2 and A-4 with the Developer was approved by the Council on October 20, 2025, which caps the total reimbursement of net bond proceeds and assessment revenue for Improvement Areas A-2, A-3.1, A-3.2 and A-4 in an amount not to exceed $32,677,000.00.
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 installments, which are billed out and collected by the City around the same time as ad valorem property taxes. The City has no legal or moral obligation to repay the bonds from any source of revenue other than these pledged assessments.
Bond pricing is scheduled for the morning of November 17, 2025, at which time the bond documents will be updated to reflect the actual bond par amount, maturities, and principal and interest rates. The attached Bond Ordinance approves the form and content of the Limited Offering Memorandum, which is typically finalized and posted within seven business days. Closing of the bond sale should occur on or before December 17, 2025.
Recommended/Desired Action
Staff recommends approval of the ordinance.
Attachment(s)
Ordinance
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