City of Rockdale Closes on $12 Million in Public Improvement District Bonds
THE CITY OF ROCKDALECLOSES ON $12 MILLION IN PUBLIC IMPROVEMENT DISTRICT BONDS
Bond Proceeds to be Used to Reimburse Developer for New Subdivision
(November 20, 2023) ROCKDALE, Texas – On November 17, 2023, the City of Rockdale closed and received over $12 million in Public Improvement District (PID) bonds in connection with the Cornerstone subdivision. “The City Council and staff have worked very hard to make this happen,” said Rockdale Mayor Brett Boren. “This was an out-of-the-box project for us that will be transformative for the community.”
The City agreed to reimburse Ranch Road Development of Bastrop, Texas, for off-site and on-site development costs, such as water, sewer, drainage, and street infrastructure. “We agreed to do this to try to bring lot costs down so that the homes could be a little more affordable,” explained Rockdale City Manager Barbara Holly.
The newly issued PID bonds provide the up-front cash needed to reimburse the developers per a Performance Agreement signed in 2022.
The City created a Tax Increment Reinvestment Zone (TIRZ) and PID overlay to generate property tax funds from within the new subdivision which will be used to repay the PID bonds. The City will be receiving 30% of the new value which can be used to pay for increased city services.
“These PID bonds will not be repaid by the existing City tax base,” Holly elaborated. “We want the growth from the new subdivision to pay for its own development cost.”
D.R. Horton will purchase lots from Ranch Road and build houses to sell. Growth in the Central Texas market is driving demand for new home construction in Rockdale. “The thousands of jobs created at the Samsung plant in Taylor and the new industrial parks in Rockdale will mean more people will want to live here,” Boren continued. “We want to take advantage of this opportunity and we see room for more deals like this.”
D.R. Horton plans on starting construction of the first houses around December 2023 and the first homes should be ready for sale by May 2024.
