The developer's reason for requesting the formation of a MUD follows:
"Due to today’s booming economic conditions, the costs of developing a mixed use community measuring up to the standards of potential home buyers and the City outweigh the financial benefits. Therefore, Trio has recently entered into discussions with City Staff regarding the creation of an “In-City” municipal utility district to be named Williamson County Municipal Utility District No. 35 to encompass the Land and designed to reimburse a portion of the costs of applicable utility facilities, roads and park/recreational facilities allowed by the District."
This sound like it is uneconomical to develop the land privately, unless part of the cost can be pushed off on the future buyers of the individual properties in the development through the issuance of 25 year bonds. If that is the case, perhaps this is not the best plan for this property. This seems to be another example of "mortgage the future" to satisfy today's "wants".
As part of the submission to the city for the workshop, the developer has included a extensive draft traffic impact study that should be of interest to all those who live around the airport, especially Berry Creek. It can be viewed at the above link.
Keep in mind that MUDs are separate taxing authorities and can issue bonds and fees with city approval to build the infrastructure.
Proposed Financial Terms
Maximum Amount of Bonds to be Issued – $45,175,000
Maximum Maturity of Bonds – 25 years from date of issuance
Facilities Bonds may be issued to finance: Water, Wastewater, Storm Drainage, Roads, Recreational Facilities, and Refunding Bonds
District Only Tax Rate (Projected) - $0.516
City Tax Rate - $0.434
Total maximum tax rate, City and District - $0.95
These rates will be in addition to Williamson County and school taxes for the homes and businesses within the MUD.
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