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Development pact to return to Boyd council

By Richard Greene | Published Saturday, October 13, 2018
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The city of Boyd and developer Bob Shelton could come to terms on the pre-development agreement for Spring Hill South Tuesday night.

The agreement will be back before the city council after Boyd’s engineer, financial adviser, bond counsel and public improvement district (PID) adviser all signed off on the terms of the pact this week. Boyd City Administrator Greg Arrington said Thursday the revised agreement was being sent to Shelton.

“Everything is done on the city of Boyd side,” Arrington said. “The engineer approved the on-site and off-site improvements. The financial advisor, bond counsel, PID adviser and attorneys are all happy with the language. If Shelton agrees to the changes, it could be approved by the council Tuesday.”

At its Oct. 2 meeting, the Boyd council took no action on the agreement that is the first step for the 595- to 650-home development on Cemetery Road. The city’s advisers insisted on reworking the financial terms of the PID and the tax increment reinvestment zone (TIRZ) in the proposed agreement. The PID would apply fixed assessments on properties in the development to pay back the bonds for infrastructure – water, sewer, drainage and roads. The TIRZ would allow a portion of the taxes assessed in the area to be used to pay down the PID.

The city’s advisers felt the language in the previously submitted pact was too limited, locking the two sides into a 50-50 split.

Arrington said in the new proposal there is a range to allow some flexibility.

“To lock in the percentages was premature,” he said. “It may be 50-50 or we could pay less or more.”

Arrington said with the range, the two sides would have the ability to make upgrades on off-site projects and take on those costs.

He echoed the sentiments of Mayor Rodney Holmes from the Oct. 2 meeting, saying they are working to protect the interests of the city on the project.

Shelton has agreed to seek annexation into the city for the land that is currently in the extraterritorial jurisdiction.

In a timeline presented to the council by Shelton’s attorney Mindy Koehne in September, the city would be presented with a petition for voluntary annexation of the 153 acres after the council approves the development agreement. Shelton will also present a petition for the creation of the PID.

The city in November will be petitioned to create the TIRZ.

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