Language tweaked in development agreement

By Richard Greene | Published Saturday, October 20, 2018
Tags: ,

Share this page...

The Boyd City Council agreed to terms for the planned improvement district (PID) and the tax increment reinvestment zone (TIRZ) with developer Bob Shelton for the Spring Hill South addition, but did not approve the pre-development agreement Tuesday.

The council took no action on the agreement to wait for its team of advisers to adjust language in the pact. The council plans to meet before Oct. 30 to approve the deal, said Mayor Rodney Holmes.

“We’re in agreement with all the numbers,” Holmes said. “We want to get this done and move forward.”

Shelton and the city have been in talks since January on the proposed 595- to 650-home development on 153 acres on Cemetery Road. The land is currently in Boyd’s extraterritorial jurisdiction. Shelton has agreed to petition to have the land annexed into the city after he closes on the property. He has a deadline of early November to close on the property.

Shelton’s attorney Mindy Koehne said he would be filing the petition for annexation and creation of the PID and TIRZ simultaneously.

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 agreed to a 50-50 split on the TIRZ up to a valuation of $210,000. That means half of the city’s tax rate levy on properties in the development would go toward paying off the bonds. Tax revenue on properties with a value above $210,000 garnered by the city would have to be spent on projects within the development and could be used to pay down bonds.

There will be a 75-cent levy to pay the PID assessment to cover the bond payments for the initial infrastructure.

Based on current Wise County, Boyd ISD, Boyd, Wise County Emergency Service District No. 1, Weatherford College Wise County and WCID No. 1 tax rates, the residents in the development will be paying a total tax rate of $2.74 per $100 of valuation with the PID assessment. On a $210,000 home, the taxes would be $5,754.

Nick Bulaich of Hilltop Securities said during his presentation about the PID and TIRZ that the total tax stack is competitive with properties west of Interstate 35.

Leave a Reply. Note: As of March 24, 2011, all posted comments will include the users full name. News and Blog Comment Guidelines

You must be logged in to post a comment.