The city of Marble Falls plans to put two Public Improvement District bonds up for sale to pay for necessary infrastructure in Improvement Area #1 and the Major Improvement Area Project of the Thunder Rock housing development. Courtesy rendering
The Marble Falls City Council authorized putting two Public Improvement District bonds up for sale. Both bonds will be used toward constructing roads, a water system, and other infrastructure needs for the Thunder Rock housing development.
The eight-phase development, to be built on land at the corner of U.S. 281 and Texas 71 in Marble Falls, includes 2,958 homes and a sports complex.
A $12.1 million bond will be used toward Improvement Area #1, which encompasses 172.74 acres of land. An additional $5.3 million bond covers costs associated with infrastructure improvements for the Major Improvement Area Project, including roads and water lines.
The bonds should be put on the market during the last week of June, said Tripp Davenport, director of investment banking at FMS Bonds, the company overseeing the sales. Results of the sales will be discussed at the council meeting on July 20.
PID bonds are repaid through assessment fees imposed within the improvement district. Repayment to bond investors is secured through a lien on lots within the development.
During the meeting, Councilor Reed Norman sought clarification on how issuing the bonds might affect taxpayers or the city’s bond rating.
“This is a special revenue of the city, so it’s treated like a water/sewer bond,” Davenport explained. “The one thing the city does is … collect the assessment like an ad valorem tax. If (a homeowner) doesn’t pay that assessment, you would go through a foreclosure proceeding just like you would in any other home. They would look to that property owner for repayment, and if they go away, then my investors own a house here in Marble Falls.”
During the meeting, the council also approved a preliminary plat 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-acre portion of land in the first phase of the development.