87R11804 SMT-F

By: Stucky H.B. No. 4629

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Agora Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3997 to read as follows:

CHAPTER 3997. AGORA MUNICIPAL MANAGEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3997.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Corinth.

(3) "Director" means a board member.

(4) "District" means the Agora Municipal Management District No. 1.

Sec. 3997.0102. NATURE OF DISTRICT. The Agora Municipal Management District No. 1 is a special district created under Section 59, Article XVI, Texas Constitution.

Sec. 3997.0103. PURPOSE; DECLARATION OF INTENT. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter.

(b) By creating the district and in authorizing the city and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution.

(c) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district.

(d) This chapter and the creation of the district may not be interpreted to relieve the city from providing the level of services provided as of the effective date of the Act enacting this chapter to the area in the district. The district is created to supplement and not to supplant city services provided in the district.

Sec. 3997.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter.

(b) The district is created to serve a public use and benefit.

(c) The creation of the district is in the public interest and is essential to further the public purposes of:

(1) developing and diversifying the economy of the state;

(2) eliminating unemployment and underemployment; and

(3) developing or expanding transportation and commerce.

(d) The district will:

(1) promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public;

(2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a community and business center;

(3) promote the health, safety, welfare, and enjoyment of the public by providing parks, open spaces, and pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty; and

(4) provide for water, wastewater, drainage, road, and recreational facilities for the district.

(e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, parking, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement.

(f) The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests as well as the public.

Sec. 3997.0105. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter.

(b) The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

Sec. 3997.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in:

(1) a tax increment reinvestment zone created under Chapter 311, Tax Code; or

(2) a tax abatement reinvestment zone created under Chapter 312, Tax Code.

Sec. 3997.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district.

Sec. 3997.0108. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3997.0201. GOVERNING BODY; TERMS. (a) The district is governed by a board of five directors appointed in the manner provided by Section 3997.0202.

(b) Directors serve staggered terms of four years.

Sec. 3997.0202. APPOINTMENT AND REMOVAL OF DIRECTORS. (a) The governing body of the city shall appoint directors to the board.

(b) The governing body of the city may not appoint a person to serve as a director if after the appointment fewer than three of the directors would reside in the city.

(c) The governing body of the city may remove a director.

Sec. 3997.0203. EX OFFICIO DIRECTORS. (a) The city manager, city director of economic development, and city director of finance serve as nonvoting ex officio directors.

(b) An ex officio director is entitled to speak on any matter before the board.

(c) An ex officio director is entitled to receive the same notices and information as a voting director.

(d) If an office described by Subsection (a) is renamed, changed, or abolished, the governing body of the city may appoint to serve as a nonvoting ex officio director another officer or employee who performs duties comparable to those performed by the officer or employee described by Subsection (a).

(e) The city manager, city director of economic development, or city director of finance may appoint a designee to serve under this section in place of that person.

(f) An ex officio director is not counted as a director for purposes of establishing a quorum.

(g) Section 375.063, Local Government Code, does not apply to an ex officio director.

Sec. 3997.0204. VACANCY. The governing body of the city shall fill a vacancy on the board for the remainder of the unexpired term.

Sec. 3997.0205. DIRECTOR'S OATH OR AFFIRMATION. (a) A director shall file the director's oath or affirmation of office with the district. The district shall retain the oath or affirmation in the district records.

(b) A director shall file a copy of the director's oath or affirmation with the secretary of the city.

Sec. 3997.0206. COMPENSATION; EXPENSES. A director is not entitled to compensation, but is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of the board.

Sec. 3997.0207. INITIAL DIRECTORS. Notwithstanding Section 3997.0201(b), the governing body of the city shall designate three initial directors to serve terms that expire June 1, 2023, and two initial directors to serve terms that expire June 1, 2025.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3997.0301. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created.

Sec. 3997.0302. DEVELOPMENT AGREEMENT. The city, the district, and any other entities the city determines are necessary to the agreement may execute a development agreement if approved by the city and the district.

Sec. 3997.0303. IMPROVEMENT PROJECTS AND SERVICES. (a) The district, using any money available to the district for the purpose, may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service authorized under this chapter or Chapter 372 or 375, Local Government Code, including parks and open spaces.

(b) The district may contract with a governmental or private entity to carry out an action under Subsection (a).

(c) The implementation of a district project or service is a governmental function or service for the purposes of Chapter 791, Government Code.

Sec. 3997.0304. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and

(2) may implement any project and provide any service authorized by this chapter.

(c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code, except that a board member is not required to reside in the district.

Sec. 3997.0305. LAW ENFORCEMENT SERVICES. To protect the public interest the district may contract with a qualified party, including the city, to provide additional law enforcement services in the district for a fee.

Sec. 3997.0306. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance of a district purpose.

Sec. 3997.0307. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district may engage in activities that accomplish the economic development purposes of the district.

(b) The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(c) The district may create economic development programs and exercise the economic development powers provided to municipalities by:

(1) Chapter 380, Local Government Code; and

(2) Subchapter A, Chapter 1509, Government Code.

Sec. 3997.0308. PARKING FACILITIES. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets and related appurtenances.

(b) The district's parking facilities serve the public purposes of the district and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years.

(c) The district's parking facilities are parts of and necessary components of a street and are considered to be a street or road improvement.

(d) The development and operation of the district's parking facilities may be considered an economic development program.

Sec. 3997.0309. ADDING OR EXCLUDING LAND. The district may add or exclude land in the manner provided by Subchapter J, Chapter 49, Water Code, or by Subchapter H, Chapter 54, Water Code.

Sec. 3997.0310. DISBURSEMENTS AND TRANSFERS OF MONEY OR OTHER ASSETS. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of district money or other assets.

Sec. 3997.0311. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to the district.

Sec. 3997.0312. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain.

SUBCHAPTER D. ASSESSMENTS

Sec. 3997.0401. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a service or improvement project with assessments under this chapter unless a written petition requesting that service or improvement has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by the owners of a majority of the assessed value of real property in the district subject to assessment according to the most recent certified tax appraisal roll for the county.

Sec. 3997.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this chapter in all or any part of the district.

(b) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and

(3) are the personal liability of and a charge against the owners of the property even if the owners are not named in the assessment proceedings.

(c) The lien is effective from the date of the board's resolution imposing the assessment until the date the assessment is paid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property.

(d) The board may make a correction to or deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments.

SUBCHAPTER E. TAXES AND BONDS

Sec. 3997.0501. TAX ELECTION REQUIRED. (a) The district must hold an election in the manner provided by Chapter 49, Water Code, or, if applicable, Chapter 375, Local Government Code, to obtain voter approval before the district may impose an ad valorem tax.

(b) Section 375.243, Local Government Code, does not apply to the district.

Sec. 3997.0502. OPERATION AND MAINTENANCE TAX. (a) If authorized by a majority of the district voters voting at an election under Section 3997.0501, the district may impose an operation and maintenance tax on taxable property in the district in the manner provided by Section 49.107, Water Code, for any district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the operation and maintenance tax rate. The rate may not exceed the rate approved at the election.

Sec. 3997.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on terms determined by the board.

(b) The district may issue bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources of money, to pay for any authorized district purpose.

(c) The district may issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from ad valorem taxes or assessments in the manner provided by Subchapter A, Chapter 372, Local Government Code, if the improvements financed by an obligation issued under this section will be conveyed to or operated and maintained by a municipality or other retail utility provider pursuant to an agreement with the district entered into before the issuance of the obligation.

Sec. 3997.0504. BONDS SECURED BY REVENUE OR CONTRACT PAYMENTS. The district may issue, without an election, bonds secured by:

(1) revenue other than ad valorem taxes, including contract revenues; or

(2) contract payments, provided that the requirements of Section 49.108, Water Code, have been met.

Sec. 3997.0505. BONDS SECURED BY AD VALOREM TAXES; ELECTIONS. (a) If authorized at an election under Section 3997.0501, the district may issue bonds payable from ad valorem taxes.

(b) At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part of the bonds are outstanding as required and in the manner provided by Sections 54.601 and 54.602, Water Code.

(c) All or any part of any facilities or improvements that may be acquired by a district by the issuance of its bonds may be submitted as a single proposition or as several propositions to be voted on at the election.

Sec. 3997.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The board may not issue bonds until each municipality in whose corporate limits or extraterritorial jurisdiction the district is located has consented by ordinance or resolution to the creation of the district and to the inclusion of land in the district.

(b) This section applies only to the district's first issuance of bonds payable from ad valorem taxes.

SECTION 2. The Agora Municipal Management District No. 1 initially includes all territory contained in the following area: BEING 10.479 acres of land located in the J. WALTON SURVEY, Abstract No. 1389, City of Corinth, Denton County, Texas, and being the same tract of land conveyed to Anchor City Investments, LLC, by the deed recorded in Instrument No. 2006-90896, of the Deed Records of Denton County, Texas. Said 10.479 acres of land being more particularly described by metes and bounds as follows: BEGINNING at a 1/2" iron rod found at the Northwest corner of Lot 1, Block A, Corinth Medical Center, an addition to the City of Corinth according to the plat recorded in Instrument No. 2013-52, of the Plat Records of Denton County, Texas, and said point lying in the South right-of-way line of Walton Road (a 60 foot wide public right-of-way); THENCE S 13° 19' 57" E 587.40 feet, along the East boundary line of said Anchor City Investments Tract and the West boundary line of said Lot 1, Block A, to a 5/8" iron rod found at the Southeast corner of said Anchor City Investments Tract and the Southwest corner of said Lot 1, Block A, and said point lying in a curve to the left in the North Right-of-way line of Corinth Parkway (a variable width public right-of-way); THENCE along the North right-of-way line of said Corinth Parkway, and the South boundary line of said Anchor City Investments Tract, as follows: 1. SOUTHWESTERLY 55.02 feet, along said curve to the left, having a radius of 2,542.00 feet, a central angle of 01° 14' 24", and a chord bearing S 63° 50' 46" W 55.01 feet, to a 1/2" iron rod marked found, at the end of said curve; 2. S 79° 53' 43" w 152.91 feet, to a 5/8" iron rod marked "Carter & Burgess" found lying at the beginning of another curve to the left; 3. SOUTHWESTERLY 225.31 feet, along said curve to the left, having a radius of 2,590.00 feet, a central angle of 04° 59' 04", and a chord bearing S 57° 31' 42" W 225.24 feet, to an "X" cut in a concrete utility vault, set at the end of said curve, and said point lying in a curve to the right in the East boundary line of a tract of land (formerly the M.K.T. Railway) conveyed to the City of Denton by the deed recorded in Instrument No. 93-0058485 of the Deed Records of Denton County, Texas; THENCE along the West boundary line of said Anchor City Investments Tract and the East boundary line of said City of Denton Tract, as follows: 1. NORTHWESTERLY 302.73 feet, along said curve to the right, having a radius of 1,937.96 feet, a central angle of 08° 57' 01", and a chord bearing N 43° 49' 18" W 302.42 feet, to a 1/2" iron rod found at the end of said curve; 2. N 39° 16' 15" w 675.17 feet, to a 1/2" iron rod found, at the Northwest corner of said Anchor City Investments Tract and said point lying in the South right-of-way line of the aforesaid Walton Road; 3. THENCE N 89° 49' 39" E 891.27 feet, along the North boundary line of said Anchor City Investments Tract and the South right-of-way line of said Walton Road, to the POINT OF BEGINNING containing 10.479 acres (456,953 square feet) of land

SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code.

(b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.

(d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2021.