Below is copied from the City of Rowlett website. Please note the highlighted phrase. What are the commitments and obligations that the city has committed to? This is important to know to determine the city's risks. Of course, the big kahuna of questions is, "What are the financial risks to the city if the project is not successful?" Is the city obligated to pay off the bond holders if Bayside is not a commercial success?" An agreement should exist, somewhere.
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(From City of Rowlett website)
How is the City of Rowlett involved in Bayside?
Bayside is a true public-private partnership. In a traditional development, the City’s involvement is limited to zoning the property, providing utility services, and making inspections. In this project, however, the City of Rowlett and Bayside Land Partners committed to a vision and are obligated to executing that vision and realizing the parameters established in 2015. The City facilitated the purchase of the property from the City of Dallas, annexed the property into the municipal boundary, rezoned the property with Form Based Code, created a Tax Increment Reinvestment Zone (TIRZ), approved a public improvement district, drove a change in state law to qualify Rowlett for a ten-year tax refund from the State of Texas for a new conference center, and championed new development on I30 to support the region’s growth and this project.
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The mayor has responded to my questions. She states that the City of Rowlett is not a guarantor of the bond debt. She states that the land south of I-30 and the land owners are ultimately and personally responsible for the bond debt. I do think the mayor believes that. However, she is not an attorney and I further believe she is stating what she has been told by others. I would like to see the language in a signed document that assures the City of Rowlett is not a guarantor of the $36 million bond debt that was created by the sale of bonds for Bayside infrastructure and improvements.
More to follow.
____________________________________________
(From City of Rowlett website)
How is the City of Rowlett involved in Bayside?
Bayside is a true public-private partnership. In a traditional development, the City’s involvement is limited to zoning the property, providing utility services, and making inspections. In this project, however, the City of Rowlett and Bayside Land Partners committed to a vision and are obligated to executing that vision and realizing the parameters established in 2015. The City facilitated the purchase of the property from the City of Dallas, annexed the property into the municipal boundary, rezoned the property with Form Based Code, created a Tax Increment Reinvestment Zone (TIRZ), approved a public improvement district, drove a change in state law to qualify Rowlett for a ten-year tax refund from the State of Texas for a new conference center, and championed new development on I30 to support the region’s growth and this project.
__________________________________
The mayor has responded to my questions. She states that the City of Rowlett is not a guarantor of the bond debt. She states that the land south of I-30 and the land owners are ultimately and personally responsible for the bond debt. I do think the mayor believes that. However, she is not an attorney and I further believe she is stating what she has been told by others. I would like to see the language in a signed document that assures the City of Rowlett is not a guarantor of the $36 million bond debt that was created by the sale of bonds for Bayside infrastructure and improvements.
More to follow.
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