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Project Profile: Hackberry Hidden Cove Public Improvement District No. 2 Project

Hackberry Hidden Cove Public Improvement District No. 2 Project -  City of Hackberry, Texas

 

Location

City of Hackberry, Texas

Project Sponsor / Borrower

Hackberry Hidden Cove Public Improvement District

Program Area

Project FinanceValue Capture

Mode

Local Road

Description

The Hackberry, Texas City Council created the Hackberry Hidden Cove Public Improvement District on December 9, 2009 for the purpose of funding road and utility improvements. Located in an unincorporated area of Denton County, north of Dallas, the District extends across 208 acres and contains the subdivisions of Hidden Cove, The Shores at Hidden Cove and the Enclave at Hidden Cove. Together the subdivisions contain 1,057 lots for single-family homes. Nearly all lots in the development contain completed, occupied houses. The average taxable homestead value in 2017 was $263,954.

The City created the District to reimburse the developer for part of the cost of financing and constructing roadway, water and wastewater public improvements within the District. The District is governed by the City Council but does not have any employees. It contracts with the Denton County Tax Assessor-Collector to collect the ad valorem tax on its behalf. The road improvements constructed in the District consist of demolition of existing structures, street and right-of-way excavations, tree removal, paving, street signs, silt fences for erosion control, open space and right-of-way landscaping and screening walls. Half of the cost of the road improvements were borne by the District and the other half by the developer.

The City of Hackberry has engaged a public finance consulting firm specializing in the formation and administration of special districts, to assist with the District's administration. The consultant estimates the annual installment levied on the different properties in the District, updates the Road Service and Assessment Plan, and prepares financial reports.

In 2009, the City of Hackberry issued Combination Special Assessment and Contract Revenue Road Bonds (Series 2009A) and Subordinate Combination Special Assessment and Contract Revenue Road Bonds (Series 2009B) to cover the cost of roadway, water and wastewater improvements in the District. In 2017, the City of Hackberry refinanced its earlier debt by issuing $6,884,975 in Combination Special Assessment and Contract Revenue Road Refunding Bonds. It used the proceeds of the 2017 issue to refund the outstanding 2009 bonds, capitalize a debt service reserve fund, and cover the cost of issuing the new bonds.
Cost

Total Cost - $10,995,951

  • Road improvements - $7,136,045
  • Landscaping and screening improvements - $1,546,857
  • Soft costs - $2,313,049
Funding Sources

Special Assessment Bonds - $5.5 million

Developer funding - $5.5 million
Project Delivery / Contract Method

NA

Private Partner

Lennar

Project Advisors / Consultants
  • MuniCap, Inc - Public Improvement District Administrator
  • FirstSouthwest, a Division of Hilltop Securities, Inc. - Financial Advisor
  • Winstead PC - Bond and Disclosure Counsel
  • Andrews Kurth Kenyon LLP - Underwriter's Counsel
Lenders

Bondholders

Duration / Status

Construction is complete.

Financial Status

Closed

Innovations
  • The City of Hackberry funded half of the cost of local roadway improvements in a new residential development through an ongoing Road Services and Assessment Plan, establishing a 20-year plan for services and activities to be provided in the Hackberry Hidden Cove Pubic Improvement District.
Related Links / Articles

City of Hackberry

MuniCap, Inc.

Disclosure Reports

Contacts

Brenda Lewallen
City Administrator
City of Hackberry
Tel: (972) 292-3223

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