Agenda Packet TC 11/12/2007 - Special Session 1
Town of Trophy Club
Town Council Special Session Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Monday, November 12, 2007
7:00 P.M.
A.1 Call to order and announce a quorum.
A.2 Invocation.
A.3 Pledge of allegiance to the American Flag.
Pledge of allegiance to the Texas Flag.
"Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God,
one and indivisible."
B.1 Discuss and take appropriate action nominating candidates to the Denton County
Appraisal District Appraisal Review Board.
B.2 Centurion American to make a presentation on the Plan of Finance for the
Highlands of Trophy Club and discussion of the same.
B.3 Discuss, provide input and/or take action as appropriate regarding the following
documents and matters related to the Trophy Club Public Improvement District
No. 1 (The Highlands at Trophy Club) for infrastructure and related
improvements:
A. Discuss and take appropriate action on a Construction and Funding
Agreement between the Town and 831 Trophy, L.P. concerning the
construction of certain public improvements within the Town of Trophy
Club Public Improvement District No. 1 (The Highlands of Trophy Club
Project).
B. Review and discussion of most recent Preliminary Limited Offering
Memorandum for the Town of Trophy Club Public Improvement District
No. 1 Special Assessment Revenue Bonds, Series 2007 (Highlands of
Trophy Club Project).
B.4 Discuss and take appropriate action relative to the Interlocal Agreement between
the Town and the Trophy Club MUDs to provide water supply and wastewater
treatment and equity services to the Town.
B.5 Discuss and take appropriate action relative to the Interlocal Agreement between
the Town and the Trophy Club MUDs to provide water supply and wastewater
treatment and operational services to the Town.
2
B.6 Discuss and take appropriate action regarding the Resolution of approving the
NISD Petition for annexation of Byron Nelson High School site into MUD2.
B.7 Reports. There will be no action taken regarding any individual project posted
under this item and discussion will be limited. If extensive discussion is required,
the item may be placed on a future agenda.
(a) Town Manager's Report to include a semi annually report of fence
violations and the disposition.
(b) Report from Council member Cates on her procurement card review for
the past year and provide direction for the new fiscal year.
C.1 Adjourn.
3
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.A.1
Call to order and announce a quorum.
4
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.A.2
Invocation.
5
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.A.3
Pledge of allegiance to the American Flag.
Pledge of allegiance to the Texas Flag.
"Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God,
one and indivisible."
6
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.1
Discuss and take appropriate action nominating candidates to the Denton
County Appraisal District Appraisal Review Board.
EXPLANATION:
The Board of Directors of the Denton County Appraisal District (DCAD) is requesting
candidates for possible appointment to the Appraisal Review Board for possible
appointment to the Appraisal Review Board.
The Town Staff has not heard from anyone interested in serving on this board.
RECOMMENDATION:
ACTION BY COUNCIL:
(lmr)
Attachments: 1. Denton County Appraisal District Memo
2. Candidate list
3. Mr. Jimmy Ray’s Application
7
8
9
10
11
12
13
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.2
Centurion American to make a presentation on the Plan of Finance for the
Highlands of Trophy Club and discussion of the same.
Attachments: 1. Plan of Finance
14
Plan of Finance
The project will be financed with the proceeds of the 2007 Bonds to the extent
such proceeds are available. Public improvements not funded with the proceeds of the
2007 Bonds and all private improvements will be financed by private funding sources
and internally generated cash flow from sales occurring within the District.
The Developer estimates the cost of improvements required to complete the
Development through 2013 at an estimated $55,248,022. This total includes all bond,
permit, inspection, engineering soft costs, administrative fees and required contingency.
City and Developer procured public improvements, which total $29,161,000 will be
funded from the 2007 Bonds. Water and Sewer capacity fees on new residential
developoments outside the District may also be used to finance public improvements to
the extent that those developments utilize pro rata sharing of facilities.
The approximately $ 26,087,022 of improvements not funded with the proceeds
of the 2007 Bonds will be funded with private financing by the Developer, High Trophy
Development in Neighborhoods 1/2/5/6 and the Developer, BDMR Development in
Neighborhoods 8 and 9. The Developer Standard Pacific and KHovnanian will develop
Neighborhoods 3 and 4. As of October 1, 2007 the developer High Trophy
Development has provided funds to cover costs of approximately $1,790,000. The
Developer will provide additional funds as needed to complete the Development.
Approximately $12M in builder deposits will be utilized to offset project costs as well.
The balance of remaining improvements will be funded over time from working capital,
and land sales.
The Developer, High Trophy Development has secured Development Loan
Funding from First National Bank Southwest for Neighborhoods 1/2/5/6 at $10,641,000.
The Developer BDMR Development has secured funding from Colonial Bank for
Neighborhoods 8 and 9 in the amount of approximately $10.5M. The Developer
Standard Pacific and KHovnanian will be developing Neighborhoods 3 and 4 at an
estimated $ 6,804,000. Neighborhood 7 is contemplated with future development at
$3,996,000 from High Trophy Development. Neighborhoods 3 and 4 be completed by
Homebuilders Khovnanian and Standard Pacific at an estimated $ 6,804,000, both
publicly traded builders. Other public improvements being funded by the 2007 Bonds
total an estimated $29,161,000. The two bank loans for High Trophy Development and
BDMR Development have been closed. The Bank loan is expected to be repaid with
the proceeds from residential building lots.
The Bank Loans are secured by a lien on real estate, including real estate with
the District. The lien securing the Bank Loans will attach to all real property in the
District which lien will be subordinate to the liens of the deeds of trust securing the
Mortgage Notes (defined below).
N3 St Pac/KHOV- Funded by Standard Pacific and KHOVNANIAN
N4 St Pac/KHOV- Funded by Standard Pacific and KHOVNANIAN
15
N1 HIGH TROPHY DEVELOPMENT / First National Bank SW +/-$10.641M
N2 HIGH TROPHY DEVELOPMENT / First National Bank SW
N5 HIGH TROPHY DEVELOPMENT / First National Bank SW
N6 HIGH TROPHY DEVELOPMENT / First National Bank SW
N7 Later Phase / No current development Loan
N8 BDMR Development / Colonial Bank / +/- $10.5M
N9 BDMR Development / Colonial Bank
The Developer expects that the financial resources currently available and those
expected to be in place, together with the proceeds from the 2007 Bonds,
reimbursements, deposits, and other sources, will be sufficient to fund the completion of
the Development.
ADDITIONAL NOTES
NH-1
• 219 Lots
• Owned by High Trophy Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• Final Plan approval for first phase expected in October 2007
• Excavation to begin in October 2007 on first phase (155 lots)
• Land and Development loan with First National Bank Southwest with a total loan
of +/-$10.641M to cover N1/N2/N5/N6
• Development cost for first phase is $2,790,000
NH-2
• 150 Lots
• Owned by High Trophy Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• Final Plan approval for first phase expected in October 2007
• Excavation began in September 2007 on first phase (118 lots)
• Land and Development loan with First National Bank Southwest
• Development cost for first phase is $2,478,000
NH-3
• 140 Lots
• Owned by K. Hovnanian Homes and Standard Pacific Homes
• Fee Developer is Hillwood Residential
• Final Plan approval for first phase occurred in August 2007
• Excavation is complete and utilities are underway in first phase
• Development cost is $2,940,000
16
NH-4
• 184 Lots
• Owned by K. Hovnanian Homes and Standard Pacific Homes
• Fee Developer is Hillwood Residential
• Final Plan approval for first phase occurred in August 2007
• Excavation is complete and utilities are underway in first phase
• Development cost is $3,864,000
NH-5
• 170 Lots
• Owned by High Trophy Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• Final Plan approval for first phase expected in October 2007
• Excavation to begin in October/November 2007 on first phase (99 lots)
• Land and Development loan with First National Bank Southwest
• Development cost for first phase is $1,782,000
NH-6
• 171 Lots
• Owned by High Trophy Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• This NH will be developed as needed to supply the builders in NH-2 with
replacement phases
• Land loan with First National Bank Southwest
• Development cost is $3,591,000
NH-7
• 222 Lots
• Owned by High Trophy Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• This NH will be developed as needed to supply the builders in NH-1 and 5 with
replacement phases
• Land loan with First National Bank Southwest
• Development cost is $3,996,000
NH-8
• Zoned for 260 townhome lots
• Owned by BDMR Development, LLC (an affiliate of Centurion American)
• Development Loan +/-$10.5M with Colonial Bank to cover NH8/NH9
• Land loan with Colonial Bank
17
NH-9
• 46 Lots
• Owned by BDMR Development, LLC (an affiliate of Centurion American)
• Fee Developer is Lenart Development Company, L.L.C.
• Final Plan approval expected in October 2007
• Excavation began in September 2007
• Land and Development loan with Colonial Bank
• Development cost for first phase is $966,000
18
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.3
Discuss, provide input and/or take action as appropriate regarding the
following documents and matters related to the Trophy Club Public
Improvement District No. 1 (The Highlands at Trophy Club) for
infrastructure and related improvements:
A. Discuss and take appropriate action on a Construction and Funding
Agreement between the Town and 831 Trophy, L.P. concerning the
construction of certain public improvements within the Town of Trophy
Club Public Improvement District No. 1 (The Highlands of Trophy Club
Project).
B. Review and discussion of most recent Preliminary Limited Offering
Memorandum for the Town of Trophy Club Public Improvement District
No. 1 Special Assessment Revenue Bonds, Series 2007 (Highlands of
Trophy Club Project).
Attachments:
A. The most recent draft of the Construction and Funding Agreement.
B. The most recent draft of the Preliminary Limited Offering Memorandum. This is
being provided for your information and has been posted for discussion if Council
has any questions.
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.4
Discuss and take appropriate action relative to the Interlocal Agreement
between the Town and the Trophy Club MUDs to provide water supply and
wastewater treatment and equity services to the Town.
The most recent draft of Interlocal Agreement between the Town and the Trophy Club
MUDs to provide water supply and wastewater treatment and equity services to the
Town was not received in time for inclusion in the packet but will be forwarded to
Council when received.
(sld)
136
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.5
Discuss and take appropriate action relative to the Interlocal Agreement
between the Town and the Trophy Club MUDs to provide water supply and
wastewater treatment and operational services to the Town.
The most recent draft of Interlocal Agreement between the Town and the Trophy Club
MUDs to provide water supply and wastewater treatment and equity services to the
Town was not received in time for inclusion in the packet but will be forwarded to
Council when received.
(sld)
137
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.6
Discuss and take appropriate action regarding the Resolution of approving
the NISD Petition for annexation of Byron Nelson High School site into
MUD2.
EXPLANATION:
MUD2 is expected to take on the following on November 7th, 2007:
Discuss and take appropriate action regarding request by Northwest Independent
School District for annexation into Trophy Club Municipal Utility District No. 2 of property
described as 92.655 acres of land located in the T. Calaway Survey, Abstract No. 272;
the T. Kelly Survey, Abstract No. 704; and the J. Henry Survey, Abstract No. 529 in the
Town of Trophy Club, Denton County, Texas, known as Northwest High School No. 2
and Byron Nelson High School.
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. Resolution
2. Petition
138
TOWN OF TROPHY CLUB
RESOLUTION NO. 2007-
A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS
PROVIDING THE WRITTEN CONSENT OF THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB TO THE INCLUSION OF AN
APPROXIMATE 92.655 ACRES OF LAND, T. CALAWAY SURVEY, N-
272, ABSTRACT N. 704 AND THE J-HENRY SURVEY, ABSTRACT N.
529, (BYRON NELSON HIGH SCHOOL SITE) LOCATED WITHIN THE
EXTRATERRITORIAL JURISDICTION OF THE TOWN OF TROPHY
CLUB, TEXAS (“THE PROPERTY”) TO BE ANNEXED INTO AND
THEREAFTER INCLUDED WITHIN THE BOUNDARIES OF TROPHY
CLUB MUNICIPAL UTILITY DISTRICT NO. 2; PROVIDING THE TERMS
OF CONSENT AS AUTHORIZED BY STATE LAW; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, pursuant to Chapter 54 of the Texas Water Code, the owners
(“Landowners”) of approximately 92.655 acres of Medlin Survey, N-272, N-529 and N-
704 (Byron Nelson High School Site) located within the extraterritorial jurisdiction of the
Town of Trophy Club, Texas (the “Town’) wish to be annexed into and have included
within the boundaries of Trophy Club Municipal Utility District No. 2 (“hereinafter
“MUD2” or “District”) the land more particularly described in Exhibit “1 and 2” a copy
of which is attached hereto and incorporated herein for all purposes (the “Property”);
and
WHEREAS, because the Property is located within the Town’s extraterritorial
jurisdiction (hereinafter “ETJ”) Section 42.042 of the Texas Local Government Code and
Section 54.016 of the Texas Water Code require that MUD2 obtain the written consent
of the Town prior to the annexation of the Property into MUD2; and
WHEREAS, the general nature of the work to be done by the District is the
construction and acquisition of a waterworks and sanitary sewer collection and drainage
systems and
WHEREAS, the Town Council of the Town of Trophy Club determines it
appropriate to adopt this Resolution authorizing consent to the inclusion of the Property
into MUD2 as set forth herein and subject to the conditions of consent contained in
Exhibit “3”, a copy of which is attached hereto and incorporated herein for all
purposes.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
139
Section 1. That the matters set forth in the preamble hereof are true and
correct are hereby adopted.
Section 2. That the Town Council of the Town of Trophy Club hereby
specifically gives its .written consent, as required by Section 54.016 of the Texas Water
Code, to the inclusion of the Property, Exhibit “1 and 2”, within MUD2.
Section 3. That the Town Council of the Town of Trophy Club hereby specifically
imposes the conditions set forth in Exhibit “3” attached hereto and made a part hereof
for all purposes.
Section 4. That, this Resolution shall become effective from and after its date of
passage in accordance with law.
Passed and adopted by the Town Council of the Town of Trophy Club, Texas,
this the 12th day of November, 2007.
Mayor, Nick Sanders
Town of Trophy Club, Texas
[SEAL]
ATTEST:
Town Secretary
Town of Trophy Club, Texas
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas
140
141
142
143
144
EXHIBIT “3”
CONSENT CONDITIONS
(a) To the extent authorized by law, no bonds will be issued by the District for
the purpose of purchasing or constructing water, wastewater and/or drainage facilities
or system related to the annexation of the Property without prior written consent of the
Trophy Club Town Council. Any and all orders or resolutions of the District authorizing
the issuance of the District’s bonds shall contain a provision that any pledge of
revenues from the operation of the District’s water, wastewater and/or drainage facilities
or system to the payment of the District’s bonds shall terminate when and if the Town of
Trophy Club, Texas annexes or dissolves the District, takes over the assets of the
District and assumes all of the obligations of the District. No land located within the
extraterritorial jurisdiction of the Town shall be added or annexed to the District until the
Town of Trophy Club has given its written consent by resolution or ordinance of the
Town Council to such addition or annexation.
(b) Before the commencement of any construction within the District, the
District, its directors, officers, or its developers and landowners will submit to the Town
Engineer or his/her designated representative, all plans and specifications for the
construction of public water, wastewater, and drainage facilities to serve such District
and obtain the approval of such plans and specifications. All water wells, water meters,
flushing valves, valves, pipes, and appurtenances thereto, installed or used within the
District shall conform exactly to the specifications of the Town. All water service lines
and sewer service lines, lift stations, sewage treatment facilities, and appurtenances
thereto, installed or used within the District will comply with the Town’s standard plans
and specifications. Prior to the construction of such facilities within the District, the
District or its engineer will give written notice by registered or certified mail to the Town
Engineer, stating the date that such construction will be commenced. The construction
of the District’s water, sanitary sewer, and drainage facilities will be in accordance with
the approved plans and specifications and with applicable standards and specifications
of the Town; and during the progress of the construction and installation of such
facilities, the Town Engineer or his/her designated representative, will make periodic on-
the-ground inspections. In order to determine that the construction and installation is
being done and made in order to conform with the approved plans and specifications
and with applicable standards and specifications of the Town; and, in the event that it is
determined by the representative of the Town that construction and/or installations are
not being performed in conformance with the plans and specifications and with the
applicable standards and specifications of the Town then, upon being so informed by a
duly designated Town representative, the District agrees to discontinue further
construction and installation of all facilities until the cause of the complaint is removed.
The Developer shall pay for all costs of construction and related inspections and
Engineering services and review provided by the Town.
(c) If the District constructs a sewage treatment plant, the District will agree to
engage a sewage plant operator holding a valid certificate of competency issued under
the direction of the Texas Commission on Environmental Quality, or such successor
agency as the legislature may establish (“TCEQ”), as required by Section 26.0301,
145
Texas Water Code, as may be amended and codified from time to time. The District will
agree to make periodic analyses of its discharge pursuant to the Provisions of Order
No. 69-1219-1 of the Texas Water Quality Board (predecessor agency to the TCEQ)
and further to send copies of all such effluent data to the Town Engineer or his/her
designated representative, Town of Trophy Club, Texas, as well as to the TCEQ. The
District shall agree that representatives of the Town of Trophy Club may supervise the
continued operations of the sewage treatment facility by making periodic inspections
thereof.
(d) The District, its board of directors, officers, developers, and/or landowners
will not permit the construction of or commit to any development within the District that
will result in a wastewater flow to the serving treatment facility which exceeds that
facility's legally permitted average daily flow limitations or the District’s allocated
capacity therein.
(e) Prior to the sale of any lot or parcel of land, the owner or the developer of
the land included within the limits of the District shall first obtain the approval of the
Town Council of a plat which will be duly recorded in the Plat Records of Denton or
Tarrant Counties, Texas, as applicable, and otherwise comply with all rules and
regulations and ordinances of the Town of Trophy Club.
(f) The District will not provide water and sewer service to a residential lot
unless the plat covering such lot has been approved by the planning and zoning
commission and the Town Council, if normally required.
146
147
148
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.B.7
Reports. There will be no action taken regarding any individual project
posted under this item and discussion will be limited. If extensive
discussion is required, the item may be placed on a future agenda.
(a) Town Manager's Report to include a semi annually report of fence
violations and the disposition.
(b) Report from Council member Cates on her procurement card review for
the past year and provide direction for the new fiscal year.
Attachments: 1. Issues by Standard Issue Report
149
150
151
152
153
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 11-12-2007
Subject: Agenda Item No.C.1
Adjourn.