Results of Public Improvement District bond sales for the Thunder Rock housing development were discussed during a Marble Falls City Council meeting July 20. Now that documents are signed, construction could begin in the next two weeks. Courtesy rendering
Thunder Rock housing development construction could begin in the next two to three weeks following positive results of a Public Improvement District bond sale. The Marble Falls City Council discussed results during its July 20 meeting.
“I am excited to tell you that we have bond pricing and we have four of the largest purchasers of PID bonds in the world who are willing to invest in your community,” said Tripp Davenport, director of investment banking at FMS Bonds, the company underwriting the sales.
Investors are asset management groups Nuveen, Goldman Sachs, Franklin Fund, and Blackrock.
A $12.1 million bond used to fund construction in the development’s Improvement Area #1 received a 4.27 percent average coupon rate, which is calculated based on the bond’s face value. Originally, a 5 percent coupon was expected. The Improvement Area #1 portion is the first of eight planned development phases and encompasses 172.74 acres of land.
Another $5.3 million bond for infrastructure in the development’s Major Improvement Area received a 5.03 percent average coupon, which is lower than the anticipated 5.75 percent rate.
The PID bonds will be repaid over the next 30 years by homeowners within the district through assessment fees.
“The pricing came in so good that … the homeowners will pay less assessments and we still fully funded the project,” Davenport said.
The city began marketing the bonds during the last week of June. Mayor Richard Westerman signed sale documents during the July 20 meeting.