(5)(j)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 06/03/2020
- Title:
- Cost Sharing Agreement Between City, Lago Mar Development Authority and Land Tejas
- Submitted For:
- Doug Kneupper
- Submitted By:
- Doug Kneupper, Transportation and Planning
- Department:
- Transportation and Planning
Information
ACTION REQUEST (Brief Summary)
Consider approval of a Cost Sharing Agreement between Texas City, Lago Mar Development Authority, and Land Tejas.
BACKGROUND
The underlying project for all this is to design and construct an elevated water storage tank in Lago Mar, estimated to cost $4.4 million. Last November, a Cost Sharing Agreement was approved between The City, Land Tejas and GCMUD 56. The City and Land Tejas would share 50:50 in the cost of the water storage tank; and Land Tejas would seek reimbursement from GCMUD 56.
Under this new Cost Sharing Agreement, there is still a 50:50 cost sharing arrangement, but now the cost sharing will be between the City and Lago Mar Development Authority (LMDA). The primary reason behind this change is that LMDA has recently sold bonds for projects within Lago Mar, and LMDA can now directly fund specific construction projects. There is efficiency and some overall cost savings associated with LMDA being able to directly fund projects.
Under this new Cost Sharing Agreement, there is still a 50:50 cost sharing arrangement, but now the cost sharing will be between the City and Lago Mar Development Authority (LMDA). The primary reason behind this change is that LMDA has recently sold bonds for projects within Lago Mar, and LMDA can now directly fund specific construction projects. There is efficiency and some overall cost savings associated with LMDA being able to directly fund projects.