Consider approval of a Resolution authorizing a Developer Reimbursement Agreement between the City and AIRIA Development Company.

There is a large undeveloped area, centrally located in Texas City, generally under the ownership of a single family, known as the Kohfeldt Tract.  This tract is roughly 1300 acres and is bounded by EF Lowry Expressway, SH 146, Moses Bayou, and SH 3.  Over the years, there have been attempts at developing portions of this property, but nothing has come to fruition.  Currently, there is a land development group based in Houston that has met with the City a few times and has demonstrated a strong potential to develop the property as primarily a single-family residential project.

To help in financing such a large and long-term project, there are already Municipal Utility Districts in place to assist with the water, sewer, drainage, and other traditional infrastructure.   In addition to the MUDs, the developer is requesting the City consider creating a Tax Increment Reinvestment Zone (TIRZ).  Given the complexity of a TIRZ, the City usually engages the services of a consultant to help quantify the benefits and risks, and also schedule activities required on behalf of the City.  Through this Developer Reimbursement Agreement, the developer will front the funds needed by the City to hire a qualified consultant, and the consultant will work directly for and with the City.  The initial level of funding estimated by the consultant is $25,000.  If more funding is needed to keep the consultant on-board, the developer will be required to provide that amount as well.   

The City intends to utilize the services of Marsh-Darcy Partners, Inc. (their Professional Consulting Services Agreement is attached).  This firm is the Administrator for the Lago Mar TIRZ.  Over the years, the City has developed a strong professional relationship with Sue Darcy and others with the firm.