City Council

Council Chambers 200 West Walker Street

Agenda — 17 items

1. 1 The City Council of the City of League City, Texas, met in a work session in Council Chambers at 200 West Walker Street on the above date at 5:00 p.m.
2. 1. CALL TO ORDER AND ROLL CALL OF MEMBERS
3. 2 Mayor: Nick Long City Council Members: Andy Mann Tommy Cones Tom Crews Courtney Chadwell Scott Higginbotham Chad Tressler Sean Saunders City Manager: John Baumgartner Assistant City Manager: Rick Davis Assistant City Manger-CFO: Angie Steelman Interim City Attorney: Michelle Villarreal City Secretary: Diana M. Stapp Chief of Police: Cliff Woitena Executive Director of Capital Projects Ron Bavarian Executive Director of Development Services: Christopher Sims Director of Finance: Kimberly Corell Director of Human Resources/Civil Service: James Brumm Director of Parks & Cultural Services: Chien Wei Director of Public Works: Jody Hooks
4. 2. PUBLIC COMMENTS
5. 3. PRESENTATION AND DISCUSSION REGARDING INCLUSION OF THE MIDLINE DEVELOPMENT IN THE BAYBROOK MUNICIPAL UTILITY DISTRICT
6. 4 Mayor Long called the meeting to order at 5:00 p.m. and called the roll. All members of Council were present. Andy Mann arrived at 5:08 p.m.
7. 4. ADJOURNMENT
8. 6 _______________________ NICK LONG MAYOR
9. 7 CERTIFICATE OF NOTICE
10. 7 Michelle Villarreal, City Attorney, gave introductory remarks and introduced Angie Lutz, attorney with Allen Boone Humprhies Robinson, LLP, who gave a presentation. MidlineDevelopment: Three-Part Approval Framework 1. Utility Agreement –Establishes who builds, pays for, and maintains infrastructure. 2. Tri-Party Agreement –Secures necessary consent from Houston and sets jurisdictional terms. 3. Planned Unit Development (PUD) –Defines land use, layout, and development standards; requires P&Z and Council approval. • All three parts are interdependent and must align for full project approval. Utility Agreement –League City, Baybrook MUD & Developer • Parties: Baybrook MUD No. 1, BC-SB Baybrook JV, LLC, City of League City • Purpose: Provide utilities to ~450-acre Clearfield Tract within League City • Developer constructs infrastructure; MUD finances via bonds • City consents to annexation into MUD • City inspects and accepts completed infrastructure (excluding parks/detention unless agreed) • City owns/maintains accepted infrastructure; Developer pays capped CRFs (max 5% increase) Utility Agreement - Financial & Governance Framework • MUD issues bonds; Developer fronts costs (City not liable) • Tax cap: $1.00 per $100 valuation; No new bonds after 2060 • Includes residential, commercial, and parkland (10 acres park + 10% commercial) • Mandatory Disannexation: League City portion removed from MUD by bond payoff or Dec. 31, 2060 • City assumes full jurisdiction after disannexation
11. 8 This is to certify that the above Notice of Meeting was posted on the bulletin board of City Hall of the City of League City, Texas, on or before the 23rd day of May, 2025 prior to 12:30 p.m. as well as the City's public internet webpage, www.leaguecitytx.gov and was posted in accordance with the Texas Open Meetings Act, Chapter 551, Government Code.
12. 8 Tri-Party Agreement Overview • Parties: City of Houston, Baybrook MUD No. 1, City of League City • Purpose: Enable Baybrook MUD to annex ~450-acre Clearfield Tract • District provides infrastructure (water, sewer, drainage, roads, parks) • League City takes over services after bonds are paid or by Dec. 31, 2060 • All infrastructure must meet League City and Houston standards Tri-Party Agreement - Key Legal & Financial Provisions • Houston’s consent required due to historic ETJ authority over the MUD • MUD tax rate capped at $1.00 per $100 valuation in League City • Bonds issued to fund improvements; no new bonds post-2060 • Mandatory disannexation of Clearfield Tract once debt is retired or by 2060 • League City assumes full jurisdiction and service responsibility at that point PUD Summary –Midline Project • Total Development: ±466.5 Acres • Residential: 1,337 proposed single-family lots • Commercial: 48.1 acres designated • Fire Station: 4-acre tract dedicated for public safety use • City Park: 15 acres dedicated to League City • Private Parks: 18.2 acres reserved for residents’ recreation • Must be reviewed by P&Z and then Council • Council approval of the PUD is contingent on approval of UA and Tri-Party. Why not create a new MUD? • Baybrook has no single-family residents and is a fully commercial MUD that has o A Strong Operating Balance o An Investment-Grade Credit Rating o Sufficient bonding authorization for build out of Midline • Established MUD to accelerate value creation and infrastructure funding • Reverse Model o Typically, a community will start its development with residential, hoping to achieve the rooftops that draw commercial. This is the reverse. This MUD starts with a very strong commercial base and residential will follow. Advantages for City Taxpayers • Houston rebates sales and use tax to BMUD that fund both operating and road construction • No start up costs and lower borrowing rates • Due to commercial, high probability of a future BMUD homestead exemption (vs. zero chance in a new start up MUD) • No need for start up capital (developer advances), avoiding additional debt that burdens future taxpayers • Ability to issue bonds quicker and with lower borrowing rates • Beamer Road Project completion leads to overall mobility for LC residents Disadvantages for City Taxpayers • With LC oversight and financial benefit of BMUD, we see no disadvantages from annexing into BMUD vs. a start up MUD • The developer has accelerated reimbursement allowing for more dollars spent on amenity and beautification projects Benefits to the Developer • Reduced upfront capital requirements • Acceleration of spend for beautification and amenity projects • Faster Development timeline • A rapidly declining tax rate makes homes in Midline more affordable and increases demand • Infrastructure certainty attracts builders and commercial anchors How do we ensure LC taxpayers aren’t subsidizing others? • Midline residents pay LC water/sewer rates • BMUD residents pay Houston (or higher) water/sewer rates • BMUD O&M tax rate will become minimal with the majority of the tax rate servicing infrastructure debt • Houston sales and use rebate subsidizes the operating account, which benefits all BMUD residents Fiscal Safeguards: Caps and Dissolution • Hard Tax Cap Rate of $1.00 when BMUD issues Midline debt • Automatic deannexationof LC from BMUD once the debt is paid or December 31, 2060 Average Price in Midline • Homes are expected to average $500,000 with price points ranging from $400,000 to $700,000 • Initial offerings will produce product for 40’, 45’, 50’, 55’, 60’ and 70’ lots • The target market includes move-up buyers and executive-level families Final Thoughts • Midline will be the new “front door” to League City and transformative to the region • This structure helps finance its infrastructure in the most efficient and cost-effective manner • Deliver development faster because of the jump start and accelerated growth of BMUD • We request your support for the annexation, coupled with the approval of the Utility Agreement and Tri-Party Agreement to help create Midline in League City
13. 9 The City Council of the City of League City, Texas reserves the right to meet in closed session on any of the items listed above should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551 of the Texas Government Code: 551.071 Consultations with Attorney, 551.072 Deliberations about Real Property, 551.073 Deliberations about Gifts and Donations, 551.074 Personnel Matters, 551.076 Deliberations about Security Devices, and 551.087 Deliberations Regarding Economic Development Negotiations.
14. 10 ________________________ DIANA M. STAPP CITY SECRETARY (SEAL) MINUTES APPROVED: June 10, 2025
15. 10 At 5:53 p.m. Mayor Long said, there being no further business this meeting is adjourned.
16. 11 _________________________________________________________________________ NOTE: In compliance with the Americans with Disabilities Act, this facility is wheelchair accessible and accessible parking spaces are available. Requests for special accommodations or interpretive services must be made at least 48 hours prior to this meeting. Please contact the City Secretary's Office at 281-554-1030 or by FAX 281-554-1020. _________________________________________________________________________
17. 12 Any invocation that may be offered during the ceremonial portion of the City Council meeting shall be the voluntary offering of a private citizen, to and for the benefit of the Council. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council and do not necessarily represent the religious beliefs or views of the Council in part or as a whole. No member of the community is required to attend or participate in the invocation and such decision will have no impact on their right to actively participate in the business of the Council.