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Title
Amendment to Grand Prairie Metropolitan Utility Reclamation District (GPMURD) agreement for $165,000 per year for a Payment In Lieu of Taxas for reclamation of land from the flood plain through a series of levees, lakes and pump system for one year with four additional one year options; Authorize City Manager to execute any renewal options in his discretion, with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original agreed upon amount so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Gabe Johnson, Director of Public Works
Recommended Action
Approve
Analysis
The Grand Prairie Metropolitan Utility Reclamation District (GPMURD) was created in 1985 by the state legislature to reclaim land from the flood plain through a series of levees, lakes and pump system. The district issued debt in 1985 and 1986 to build the levee system and roadways.
In the late 1980’s the district experienced financial problems due to the real estate collapse. The Crow Family interest took control of the district in the early 1990’s in an effort to revitalize the district.
In 1995 the delinquent principal, interest and property taxes were brought up to date with the financing for Lone Star Park. Lone Star agreed to a Payment in lieu of Taxes (PILOT) agreement with the district and side agreements with Pollock Paper and Lone Star Race Park Ltd. which provided the district with funds to make debt service payments. This allowed the district to keep the overall tax rate lower than what would be required for M&O and debt service payments. The PILOT agreement with Lone Star along with side agreements with Pollock and Lone Star Race Park Ltd. expired in April 2012 when the final debt service payment was made by the district.
The district has approached the city about either dissolving the district and taking over operations or providing financial assistance to help fund the district's operations. The district will be under considerable financial stress starting this year as most of the development in the district is tax exempt property owned by the City combined with the expired PILOT agreement with Lone Star.
On August 21, 2012 the City of Grand Prairie City Council (12-1934) approved payments in lieu of taxes agreement with the Grand Prairie Metropolitan Utility Reclamation District. The Council passed the following:
GPMURD would continue to operate as it does now. They would levy a $0.60/$100 assessed valuation to operate the district. This would generate approximately $107,000. The City would enter into a Payment in Lieu of Taxes (PILOT) Agreement with the payment funded in the City's Storm Water Utility budget. The PILOT amount would be subject to change each year depending on the GPMURD budget.
The City Council at the briefing session supported a recommendation whereby the City would enter into a PILOT agreement with the district. The agreed upon amount is $165,000 for one year with annual renewals for four years.
Staff is requesting the Council to authorize the City Manager to execute a one year renewal with four additional one year options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original agreed upon amount so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms.
Financial Consideration
Funding will be available in future year's budget of Storm Water Utility Drainage (257010) GPMURD-Metro Utility Reclation Dist Maintenance (63201)