Consider and take appropriate action on a resolution approving and authorizing a financing agreement for the Lagos Reserve Public Improvement District. (Commissioner Traviilion)

Staff Report & Agenda Item Details

The Commissioners Court of Travis County, Texas (the “County”), pursuant to and in accordance with the terms, provisions and requirements of the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code, as amended (the “PID Act”), authorized the creation of the “Lagos Reserve Public Improvement District” (the “District”) pursuant to a resolution (the “Authorization Resolution”) adopted by the Commissioners Court of the County (the “Commissioners Court”) on March 31, 2026. The City of Austin (the “City”) did not object to the creation of the District within thirty days as permitted by Section 372.003(d) of the PID Act.<br><br>The creation of the District allows the developer to request PID-financing of approximately $75 million in public infrastructure improvements, including streets and roadways, water and wastewater facilities, drainage facilities, landscaping, parks and open space, trails, signage, and related public improvements that benefit the District.<br><br>On April 24, 2018, pursuant to the PID Act and Subchapter D of Chapter 431, Texas Transportation Code, as amended (the <strong>“</strong>LGC Act<strong>”</strong>), the County and the TCDA entered into a Contract for Management and Administrative Services under which the TCDA agreed to provide management and administrative services for public improvement districts established by the County, including the District.<br><br>The Commissioners Court has adopted policies and procedures relating to the establishment of public improvement districts, including provisions the Commissioners Court will use to consider whether creation of a PID, a levy of special assessments, or issuance of bonds payable from special assessments (“PID Bonds”) are in the best interest of the County (as amended, the “PID Policy”). The PID Policy has been codified in Chapter 481 of the Travis County Code. As used in the attached Agreement, the term “PID Policy” means the version of the PID Policy in effect on January 31, 2024.<br><br>In conformance with the PID Policy, the County, and the TCDA, and the Managing Developer (defined below) have negotiated and finalized the Lagos Reserve Financing Agreement (“Agreement”) for the Commissioners Court’s consideration today.<br><br>Pursuant to the terms of this Agreement, the County and the TCDA both have agreed to allow financing of certain public improvements conferring special benefits to the Property through the District.<br><br>The proposed Agreement is entered into by and among 706 Investment Partnership, Ltd., a Texas limited partnership (including it Designated Successors and Assigns, the “Managing Developer”), the TCDA, and Travis County and consented to by : Wild Horse Creekside Commercial, L.P., a Texas limited partnership (including successors and assigns, “Wild Horse”), BZ Mila, LLC, a Texas limited liability company (including successors and assigns, “BZ Mila”), GG Lagos Limited Partnership, a Delaware limited partnership (including s