Marble Falls City Council has authorized the sale of two Public Improvement District bonds. Both bonds will be used for the construction of roads, a water system and other infrastructure needs for the Thunder Rock housing development.
The eight-phase development, which will be built on land on the corner of US 281 and Texas 71 in Marble Falls, includes 2,958 homes and a sports complex.
A bond of $ 12.1 million will be used for Improvement Area # 1, which encompasses 172.74 acres of land. An additional bond of $ 5.3 million covers costs associated with infrastructure improvements in the Major Improvement Area project, including roads and water pipes.
The bonds are expected to be marketed in the last week of June, said Tripp Davenport, director of investment banking at FMS Bonds, the company overseeing sales. The results of the sales will be discussed at the board meeting on July 20.
PID obligations are reimbursed through an assessment fee imposed in the improvement district. The reimbursement to bond investors is guaranteed by a lien on the development lots.
During the meeting, Councilor Reed Norman asked for clarification on how the bond issuance might affect taxpayers or the city’s bond rating.
“This is a special city income, so it is treated as a water / sewer obligation,” Davenport explained. “The only thing the city does is… perceive the assessment as an ad valorem tax. If (a homeowner) does not pay this assessment, you will go through foreclosure proceedings just like you would any other home. They would look to that owner for the refund, and if they go, then my investors own a house here in Marble Falls.
During the meeting, council also approved a preliminary platform for Improvement Area # 1, which will create 298 new lots and 14,495.5 linear feet of new public right-of-way on the 172.74 portion of the land. acres in the first phase of development.