81R7826 GCB-F
By: Hinojosa S.B. No. 2550
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Padre Island Gateway Municipal
Management District; providing authority to impose a tax and issue
bonds.
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 3869 to read as follows:
CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3869.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Corpus Christi.
(3) "District" means the Padre Island Gateway
Municipal Management District.
(4) "Improvement project" means any program or project
authorized by Section 3869.102, inside or outside the district.
Sec. 3869.002. NATURE OF DISTRICT. The district is a
special district created under Section 59, Article XVI, Texas
Constitution.
Sec. 3869.003. PURPOSE; LEGISLATIVE FINDINGS. (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. 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.
(b) The creation of the district is necessary to promote,
develop, and protect the environment and the other natural
resources of this state, and to encourage and maintain employment,
commerce, transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) The district is created to supplement and not to
supplant services provided by the city in the district. 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.
Sec. 3869.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) 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.
(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 this
state;
(2) eliminating unemployment and underemployment;
(3) providing quality residential housing;
(4) developing or expanding transportation and
commerce; and
(5) improving and enhancing the environment in and
around the district and in the city.
(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 residential community and business
center;
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways throughout the district,
including public beaches along the Gulf of Mexico; and
(4) landscape and develop areas in the district that
are necessary for the restoration, preservation, and enhancement of
scenic beauty and enhancing and improving the environment as an
essential natural resource of this state.
(e) Pedestrian ways along or across a street or a beach,
whether at grade or above or below the surface, and street lighting,
street landscaping, vehicle parking, and street art objects are
parts of and necessary components of a street and a beach and are
considered to be an improvement project that includes a street,
road, or beach 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. 3869.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under
Section 3869.107 or 3869.202 or other law.
(b) A mistake in the field notes of the district contained
in Section 2 of the Act enacting this chapter or in copying the
field notes in the legislative process does not in any way affect:
(1) the district's organization, existence, or
validity;
(2) the district's right to contract, including the
right to issue any type of bond or other obligation for a purpose
for which the district is created;
(3) the district's right to impose or collect an
assessment, tax, or any other revenue; or
(4) the legality or operation of the board.
Sec. 3869.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
(a) All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the
city under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
city under Chapter 312, Tax Code; or
(3) an enterprise zone created by the city under
Chapter 2303, Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the district may accept and use money
deposited in the tax increment fund, in accordance with a contract
between the city and the district, for a purpose Section
380.002(b), Local Government Code, authorizes for a corporation.
The district may pledge the money granted as security for bonds
issued by the district for an improvement project.
[Sections 3869.007-3869.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3869.051. GOVERNING BODY; TERMS. The district is
governed by a board of five voting directors appointed under
Section 3869.052 and three nonvoting directors serving ex officio
as provided by Section 3869.054. The five voting directors serve
staggered terms of four years.
Sec. 3869.052. APPOINTED DIRECTORS. The governing body of
the city shall appoint the voting directors and shall appoint a
director to fill each vacancy that occurs on the board, with the
appointee to serve for the unexpired term of the former director.
Sec. 3869.053. ELIGIBILITY OF APPOINTED DIRECTORS. (a) To
be qualified to serve as a voting director appointed under Section
3869.052, a person must be at least 18 years old and:
(1) a resident of the district who is also a registered
voter of the district;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that
owns property in the district; or
(5) an agent, employee, or tenant of a person
described by Subdivision (2), (3), or (4).
(b) Section 49.052, Water Code, does not apply to the
district.
Sec. 3869.054. EX OFFICIO DIRECTORS. (a) The following
persons serve ex officio as nonvoting directors:
(1) an assistant city manager of the city appointed by
the city manager of the city;
(2) the chief financial officer of the city; and
(3) the economic development director of the city.
(b) If an office described in Subsection (a) is renamed,
changed, or abolished, the governing body of the city may appoint
another officer or employee of the city who performs duties
comparable to those performed by the officer described by
Subsection (a).
Sec. 3869.055. FILING OATH OR AFFIRMATION. An initial and
an appointed director's oath or affirmation of office shall be
filed with the district and the district shall retain the oath or
affirmation in the district records.
Sec. 3869.056. OFFICERS. The board shall elect from among
the initial and appointed directors a presiding officer, an
assistant presiding officer, and a secretary.
Sec. 3869.057. COMPENSATION; EXPENSES, LIABILITY INSURANCE
FOR DIRECTORS. (a) The district may compensate each initial and
each appointed director in an amount not to exceed $50 for each
board meeting. The total amount of compensation per appointed
director per year may not exceed $2,000.
(b) An initial or appointed director or a director ex
officio is entitled to reimbursement for necessary and reasonable
expenses incurred in carrying out the duties and responsibilities
of a director.
(c) The district may obtain and pay for comprehensive
general liability insurance coverage from commercial insurance
companies or other sources that protect and insure the directors
against personal liability and from any and all claims for actions
taken as directors or actions and activities taken by the district
or by others acting on its behalf.
Sec. 3869.058. CONFLICTS OF INTEREST. (a) An initial or
appointed director may participate in a board discussion or vote
only if the director complies with Subsection (b).
(b) A director who has a substantial interest in a business
or charitable entity that will receive a pecuniary benefit from a
board action shall file an affidavit with the board secretary
declaring the interest. Another affidavit is not required if the
director's interest changes.
(c) After the affidavit is filed, the director may
participate in a discussion or vote if:
(1) a majority of the appointed directors have a
similar interest in the same entity;
(2) all other similar businesses or charitable
entities in the district will receive a similar pecuniary benefit;
or
(3) the appointed director is a property owner in the
district.
(d) Section 171.004, Local Government Code, does not apply
to the district.
Sec. 3869.059. INITIAL DIRECTORS. (a) The initial board
consists of the three ex officio directors described by Section
3869.054 and the following five voting directors:
Place No. Name of Initial Director
Place 1 Stacy Costello
Place 2 Toni Duclottni
Place 3 Mark Patterson
Place 4 Kevin Mutschler
Place 5 Ronald Batts
(b) The terms of the initial directors of Places 1 and 2
expire on July 1, 2011, and the terms of the initial directors of
Places 3, 4, and 5 expire on July 1, 2013.
(c) Subsequent voting directors are appointed for four-year
terms by the governing body of the city under Section 3869.052.
(d) This section expires September 1, 2013.
[Sections 3869.060-3869.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3869.101. GENERAL POWERS AND DUTIES. (a) The district
has the duties imposed and the powers granted by this chapter and
the powers provided by:
(1) the general laws relating to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code;
(2) the general laws relating to road districts and
road utility districts created under Section 52, Article III, Texas
Constitution;
(3) Subchapter A, Chapter 372, Local Government Code,
to a municipality or county;
(4) Chapter 375, Local Government Code;
(5) Chapter 505, Local Government Code, to a
corporation created under that chapter; and
(6) Chapter 1371, Government Code, to an issuer, as
defined by that chapter.
(b) It is expressly provided that the district's bonds and
other securities, and the activities and appointment of the board
of the district, are not subject to the jurisdiction or supervision
of the Texas Commission on Environmental Quality under Chapter 49,
Water Code, under Chapter 375, Local Government Code, or under any
other law.
Sec. 3869.102. IMPROVEMENT PROJECTS. (a) The district may
provide, or enter into contracts with a governmental or private
entity to provide, the following types of improvement projects or
activities in support of or incidental to those projects:
(1) a supply and distribution facility or system to
provide potable and nonpotable water to the residents and
businesses of the district, including a wastewater collection
facility;
(2) a paved, macadamized, or graveled road, street, or
turnpike, inside and outside the district, to the full extent
authorized by Section 52, Article III, Texas Constitution;
(3) the planning, design, construction, improvement,
and maintenance of:
(A) landscaping;
(B) highway right-of-way or transit corridor
beautification and improvement;
(C) lighting, banners, and signs;
(D) a street or sidewalk;
(E) a hiking and cycling path or trail;
(F) a pedestrian walkway, skywalk, crosswalk, or
tunnel;
(G) a public beach, park, lake, garden,
recreational facility, community activities center, dock, wharf,
sports facility, open space, scenic area, or related exhibit or
preserve;
(H) a fountain, plaza, or pedestrian mall; or
(I) a drainage or storm water detention
improvement;
(4) protection and improvement of the quality of storm
water that flows through the district;
(5) the planning, design, construction, improvement,
maintenance, and operation of:
(A) a water or sewer facility; or
(B) an off-street parking facility or heliport;
(6) the planning and acquisition of:
(A) public art and sculpture and related exhibits
and facilities; or
(B) an educational facility and a cultural
exhibit or facility;
(7) the planning, design, construction, acquisition,
lease, rental, improvement, maintenance, installation, and
management of and provision of furnishings for a facility for:
(A) a conference, convention, or exhibition;
(B) a manufacturer, consumer, or trade show;
(C) a civic, community, or institutional event;
or
(D) an exhibit, display, attraction, special
event, or seasonal or cultural celebration or holiday;
(8) the removal, razing, demolition, or clearing of
land or improvements in connection with an improvement project;
(9) the acquisition and improvement of land or other
property for the mitigation of the environmental effects of an
improvement project;
(10) the acquisition of property or an interest in
property in connection with an authorized improvement project,
including any project authorized by Subchapter A, Chapter 372,
Local Government Code;
(11) a special or supplemental service for the
improvement and promotion of the district or an area adjacent to the
district or for the protection of public health and safety or the
environment in or adjacent to the district, including:
(A) advertising;
(B) promotion;
(C) tourism;
(D) health and sanitation;
(E) public safety;
(F) security;
(G) fire protection or emergency medical
services;
(H) business recruitment;
(I) development;
(J) the reduction of automobile traffic volume
and congestion, including the provision, construction, and
operation of light rail or streetcar systems and services; and
(K) recreational, educational, or cultural
improvements, enhancements, and services; or
(12) any similar public improvement, facility, or
service.
(b) The district may not undertake a project under this
section unless the board determines the project to be necessary to
accomplish a public purpose of the district.
(c) An improvement project must comply with any applicable
codes and ordinances of the city.
(d) The district may not provide, conduct, or authorize any
improvement project on streets, highways, rights-of-way, or
easements of the city without the consent of the governing body of
the city.
(e) At the request of the city, the district shall transfer
to the city title to all or any portion of an improvement project.
(f) If authorized by the city, the district may own,
encumber, maintain, and operate an improvement project, subject to
the right of the city to order a conveyance of the project to the
city on a date determined by the city.
(g) The district shall immediately comply with an
ordinance, order, or resolution the city adopts to require the
district to transfer title to an improvement project to the city.
(h) For the purposes of this section, planning, design,
construction, improvement, and maintenance of a body of water
includes work done for drainage, reclamation, or recreation.
Sec. 3869.103. GENERAL POWERS REGARDING CONTRACTS. (a)
The district may:
(1) contract with any person to accomplish any
district purpose, including a contract for:
(A) the payment, repayment, or reimbursement of
costs incurred by that person on behalf of the district, including
all or part of the costs of an improvement project and interest on
the reimbursed cost; or
(B) the use, occupancy, lease, rental,
operation, maintenance, or management of all or part of a proposed
or existing improvement project; and
(2) apply for and contract with any person to receive,
administer, and perform a duty or obligation of the district under a
federal, state, local, or private gift, grant, loan, conveyance,
transfer, bequest, or other financial assistance arrangement
relating to the investigation, planning, analysis, study, design,
acquisition, construction, improvement, completion,
implementation, or operation by the district or others of a
proposed or existing improvement project.
(b) A contract the district enters into to carry out a
purpose of this chapter may be on any terms and for any period the
board determines, including a negotiable or nonnegotiable note or
warrant payable to the city, Nueces County, or any other person.
(c) Any person, including the city, may contract with the
district to carry out the purposes of this chapter without further
statutory or other authorization.
Sec. 3869.104. RULES; ENFORCEMENT. (a) The district may
adopt rules:
(1) to administer or operate the district;
(2) for the use, enjoyment, availability, protection,
security, and maintenance of the district's property and
facilities; or
(3) to provide for public safety and security in the
district, including the regulation or prohibition of automobiles
and other motor vehicles from using, entering, or traveling on the
public beaches within the district, except for safety and emergency
purposes.
(b) The district may enforce its rules by injunctive relief.
(c) To the extent a district rule conflicts with a rule,
order, ordinance, or regulation of the city, the rule, order,
ordinance, or regulation controls.
Sec. 3869.105. NAME CHANGE. The board by resolution may
change the district's name. The board shall give written notice of
the change to the city.
Sec. 3869.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF
DISTRICT. (a) The board by rule may regulate the private use of a
public roadway, open space, park, sidewalk, or similar public area
in the district. To the extent the district rules conflict with a
rule, order, ordinance, or regulation of the city, the rule, order,
ordinance, or regulation of the city controls. A rule may provide
for the safe and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas or facilities.
(b) The board may require a permit for a parade,
demonstration, celebration, entertainment event, or similar
nongovernmental activity in or on a public roadway, open space,
park, sidewalk, beach, or similar public area or facility owned by
the district. The board may charge a fee for the permit application
or for public safety or security services for those facilities in an
amount the board considers necessary.
(c) The board may require a permit or franchise agreement
with a vendor, concessionaire, exhibitor, or similar private or
commercial person or organization for the limited use of the area or
facility owned by the district on terms and on payment of a permit
or franchise fee the board may impose.
Sec. 3869.107. ADDING OR REMOVING TERRITORY. As provided
by Subchapter J, Chapter 49, Water Code, the board may add territory
to the district, subject to Section 54.016, Water Code, or remove
territory from the district, except that:
(1) the addition or removal of the territory must be
approved by:
(A) the governing body of the city; and
(B) the owners of the territory being added or
removed;
(2) a reference to a tax in Subchapter J, Chapter 49,
or Section 54.016, Water Code, means an ad valorem tax; and
(3) territory may not be removed from the district if
bonds or other obligations of the district payable wholly or partly
from ad valorem taxes or assessments levied or assessed on the
territory are outstanding.
Sec. 3869.108. ECONOMIC DEVELOPMENT. (a) The district may
create an economic development program authorized by Section 52-a,
Article III, Texas Constitution, and may impose an ad valorem tax in
support of the program if the tax is approved by the district's
voters.
(b) The district may exercise the economic development
powers that:
(1) Chapter 380, Local Government Code, provides to a
municipality with a population of more than 100,000; and
(2) Chapter 1509, Government Code, provides to a
municipality.
Sec. 3869.109. TERMS OF EMPLOYMENT; COMPENSATION. The
board may employ and establish the terms of employment and
compensation of an executive director or general manager and any
other district employees the board considers necessary.
Sec. 3869.110. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
[Sections 3869.111-3869.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3869.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.
Except as provided by Section 3869.160, the district may:
(1) impose an ad valorem tax on all taxable property in
the district, including industrial, commercial, and residential
property, to pay for an improvement project of a type authorized by
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, or to secure payment of bonds issued to pay for those
projects;
(2) impose an assessment on property in the district
to pay the cost of maintenance of any authorized district
improvement in the manner provided for:
(A) a district under Subchapters A, E, and F,
Chapter 375, Local Government Code; or
(B) a municipality or county under Subchapter A,
Chapter 372, Local Government Code;
(3) provide or secure the payment or repayment of any
bond, note, other temporary or permanent obligation,
reimbursement, or other contract with any person; or
(4) provide or secure the payment or repayment of the
costs and expenses of the establishment, administration, and
operation of the district and the district's costs or share of the
costs or revenue of an improvement project or district contractual
obligation or indebtedness by or through:
(A) the imposition of an ad valorem tax, or an
assessment, user fee, concession fee, or rental charge; or
(B) any other revenue or resources of the
district, or other revenues authorized by the city, including
revenues from a tax increment reinvestment zone created by the
city;
(5) establish user charges related to the operation of
storm water facilities, including the regulation of storm water for
the protection of water quality in the district;
(6) establish user charges for the use of nonpotable
water for irrigation purposes, subject to the approval of the
governing body of the city;
(7) undertake separately or jointly with other
persons, including the city or Nueces County, all or part of the
cost of an improvement project, including an improvement project:
(A) for improving, enhancing, and supporting
public safety and security, fire protection and emergency medical
services, and law enforcement in and adjacent to the district; or
(B) that confers a general benefit on the entire
district or a special benefit on a definable part of the district;
and
(8) enter into a tax abatement agreement in accordance
with the general laws of this state authorizing and applicable to
tax abatement agreements by municipalities.
Sec. 3869.152. BORROWING MONEY. The district may borrow
money for a district purpose by issuing or executing bonds, notes,
credit agreements, or other obligations of any kind found by the
board to be necessary or appropriate for the district purpose. The
bond, note, credit agreement, or other obligation must be secured
by and payable from ad valorem taxes, assessments, or any
combination thereof or from other district revenue.
Sec. 3869.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a)
The district may impose an impact fee or assessment on property in
the district, including an impact fee or assessment on residential
or commercial property, only in the manner provided by Subchapter
A, Chapter 372, or by Subchapter F, Chapter 375, Local Government
Code, for a municipality, county, or district, according to the
benefit received by the property.
(b) An impact fee for residential property must be for the
limited purpose of providing capital funding for:
(1) public water and wastewater facilities;
(2) drainage and storm water facilities; and
(3) streets and alleys.
(c) 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 are:
(1) a first and prior lien against the property
assessed; and
(2) superior to any other lien or claim other than a
lien or claim for county, school district, or municipal ad valorem
taxes.
(d) The lien of an assessment against property runs with the
land. That portion of an assessment payment obligation that has not
yet come due is not eliminated by the foreclosure of an ad valorem
tax lien, and any purchaser of property in a foreclosure of an ad
valorem tax lien takes the property subject to the assessment
payment obligations that have not yet come due and to the lien and
terms of payment under the assessment ordinance or order.
(e) 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.
(f) The district may not impose an impact fee on the
property, including equipment and facilities, of a public utility
provider in the district.
Sec. 3869.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.
Section 375.161, Local Government Code, does not apply to the
district.
Sec. 3869.155. MAINTENANCE AND OPERATION TAX; ELECTION.
(a) Except as provided by Section 3869.160, the district may impose
a tax for maintenance and operation purposes, including for:
(1) planning, constructing, acquiring, maintaining,
repairing, and operating all improvement projects, including land,
plants, works, facilities, improvements, appliances, and equipment
of the district; and
(2) paying costs of services, engineering and legal
fees, and organization and administrative expenses.
(b) The district may not impose a maintenance and operation
tax unless the maintenance and operation tax is approved by a
majority of the district voters voting at an election held for that
purpose. The proposition in a maintenance and operation tax
election may be for a specific maximum rate or for an unlimited
rate. If a maximum tax rate is approved, the board may impose the
tax at any rate that does not exceed the approved rate.
(c) A maintenance and operation tax election may be held at
the same time and in conjunction with any other district election.
The election may be called by a separate election order or as part
of any other election order.
Sec. 3869.156. USE OF SURPLUS MAINTENANCE AND OPERATION
MONEY. If the district has surplus maintenance and operation tax
money that is not needed for the purposes for which it was
collected, the money may be used for any authorized purpose.
Sec. 3869.157. BONDS AND OTHER OBLIGATIONS; MUNICIPAL
APPROVAL. (a) Except as provided by Sections 3869.159 and
3869.160, the district may issue by competitive bid or negotiated
sale bonds, notes, or other obligations payable wholly or partly
from ad valorem taxes, or by assessments in the manner provided by
Subchapter A, Chapter 372, or by Subchapter J, Chapter 375, Local
Government Code.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
any other type of obligation.
(c) In addition to the sources of money described by
Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
Government Code, district bonds may be secured and made payable,
wholly or partly, by a pledge of any part of the money the district
receives from system or improvement revenues or from any other
source.
Sec. 3869.158. BOND MATURITY. Bonds may mature not more
than 40 years from their date of issue.
Sec. 3869.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. (a)
At the time bonds or other obligations payable wholly or partly from
ad valorem taxes are issued:
(1) the board shall impose 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; and
(2) the district annually shall impose an ad valorem
tax on all taxable property in the district in an amount sufficient
to:
(A) pay the interest on the bonds or other
obligations as the interest becomes due;
(B) create a sinking fund for the payment of the
principal of the bonds or other obligations when due or the
redemption price at any earlier required redemption date; and
(C) pay the expenses of imposing the taxes.
(b) Bonds or other obligations that are secured by and
payable from ad valorem taxes may not be issued unless the bonds and
the imposition of the taxes are approved by a majority of the
district voters voting at an election held for that purpose.
(c) The district shall hold an election required by this
section in the manner provided by Chapter 54, Water Code.
Sec. 3869.160. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district
may issue bonds, impose taxes, or borrow money, the district and the
city must negotiate and execute a mutually approved and accepted
project development agreement regarding the development plans and
rules for:
(1) the development and operation of the district; and
(2) the financing of improvement projects.
[Sections 3869.161-3869.200 reserved for expansion]
SUBCHAPTER E. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3869.201. DIVISION OF DISTRICT; REQUIREMENTS. (a) At
any time before the district issues indebtedness secured by ad
valorem taxes, the district may be divided into two or more new
districts.
(b) A new district created by division of the district must
be at least 50 acres.
(c) Any new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act enacting this
chapter.
(d) The board may consider a proposal to divide the district
on:
(1) a petition of a landowner in the district; or
(2) a motion by the board.
(e) The board may not divide the district unless the
division is approved by the governing body of the city by
resolution. The resolution may establish conditions for the
division under Subsection (f).
(f) If the board decides to divide the district, the board,
subject to the resolution adopted under Subsection (e), shall:
(1) provide the conditions of the division, including
names for the new districts and a plan for the payment or
performance of any outstanding district obligations; and
(2) prepare a metes and bounds description for each
proposed district.
Sec. 3869.202. ELECTION FOR DIVISION OF DISTRICT. (a)
After the board has complied with Section 3869.201, the board shall
hold an election in the district to determine whether the district
should be divided as proposed.
(b) The board shall give notice of the election not later
than the 35th day before the date of the election. The notice must
state:
(1) the date and location of the election; and
(2) the proposition to be voted on.
(c) If a majority of the votes cast are in favor of the
division:
(1) the district is divided; and
(2) not later than the 30th day after the date of the
election, the district shall provide written notice of the division
to the city.
(d) If a majority of the votes cast are not in favor of the
division, the district is not divided.
Sec. 3869.203. APPOINTMENT OF DIRECTORS OF NEW DISTRICTS.
(a) Not later than the 90th day after the date of an election in
favor of the division of the district:
(1) the board shall designate itself as the board of
one of the new districts; and
(2) the governing body of the city shall appoint five
directors having the qualifications established in Section
3869.053 for each of the other new districts.
(b) The directors serving under Subsection (a)(1) serve the
staggered terms for which they were elected in the original
district. Two directors appointed under Subsection (a)(2) serve
for two years and three directors serve for four years and until the
appointment of succeeding directors under Subsection (c).
(c) Succeeding directors of all districts shall be
appointed by the governing body of the city according to the
procedures set forth in Section 3869.052.
Sec. 3869.204. CONTINUING POWERS AND OBLIGATIONS OF NEW
DISTRICTS. (a) Each new district may incur and pay debts and has
all powers of the original district created by this chapter.
(b) Each new district has the same limitations or other
provisions concerning the city that apply to the original district.
(c) If the district is divided as provided by this
subchapter, the current obligations and any bond authorizations of
the district are not impaired. District debts shall be paid by
revenue or by taxes or assessments imposed on real property in the
district as if the district had not been divided or by contributions
from each new district as stated in the conditions established by
the board under Section 3869.201(f).
(d) Any other district obligation is divided pro rata among
the new districts on an acreage basis or on other terms that are
satisfactory to the new districts.
Sec. 3869.205. CONTRACT AUTHORITY OF NEW DISTRICTS. The
new districts may contract with each other for any matter the boards
of the districts consider appropriate.
[Sections 3869.206-3869.250 reserved for expansion]
SUBCHAPTER F. DISSOLUTION
Sec. 3869.251. DISSOLUTION BY ORDINANCE. (a) The city by
ordinance may dissolve the district and any additional districts
created under Subchapter E.
(b) The city may not dissolve a district until that
district's outstanding indebtedness or contractual obligations
that are payable from ad valorem taxes have been repaid or
discharged.
(c) The city may not dissolve a district until the agreement
under Section 3869.160 has been executed and the district's
performance under the agreement has been fulfilled, including any
right or obligation the district has to reimburse a developer or
owner for the costs of improvement projects.
Sec. 3869.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
(a) If the dissolved district has bonds or other obligations
outstanding secured by and payable from assessments or other
revenue, other than ad valorem taxes, the city shall succeed to the
rights and obligations of the district regarding enforcement and
collection of the assessments or other revenue.
(b) The city has and shall exercise all district powers to
enforce and collect the assessments or other revenue to pay:
(1) the bonds or other obligations when due and
payable according to their terms; or
(2) special revenue or assessment bonds or other
obligations issued by the city to refund the outstanding bonds or
obligations.
Sec. 3869.253. ASSUMPTION OF ASSETS AND LIABILITIES. After
the city dissolves the district, the city assumes, subject to the
appropriation and availability of funds, the obligations of the
district, including any bonds or other revenue.
SECTION 2. The district shall include the 45.856 acre tract
of land out of Blocks 1 and 2, Padre Island - Corpus Christi Section
18, a map of which is recorded in Volume 38, Pages 69 and 70, Map
Records of Nueces County, Texas; said 45.586 acre tract being more
fully described by metes and bounds as follows:
Beginning at a corner of Padre Island Nueces County Park No.
2, for the northwest corner of Lot I, Block 4, Padre Island Section
18, a map of which is recorded in Volume 57, Page 105, Map Records of
Nueces County, Texas, same being the southeast corner of this
tract, from which corner the north boundary of South Padre Island
Drive, a public roadway, for the southwest corner of said Lot 1
bears South 3912'40" West 399.98 feet;
Thence, along the south boundary of this tract as follows:
North 3912'40" East 50.62 feet;
North 5901'18" West 58.15 feet;
North 2449'46" West, 65.47 feet;
North 3928'15" West, 52.76 feet;
North 8220'42" West, 55.35 feet;
North 6756'24" West, 39.39 feet;
North 3145'02" West, 111.21 feet;
South 8302'11" West, 42.36 feet;
North 6908'53" West, 50.34 feet;
North 3259'21" East, 44.81 feet;
North 3417' 14" East, 32.65 feet;
South 8137'02" West, 33.57 feet;
South 3822'00" West, 35.15 feet;
North 8142'50" West, 20.77 feet;
South 5530'57" West, 90.72 feet;
South 8748'14" West, 33.48 feet;
South 13'11"52" West, 24.55 feet;
North 5956'59" West, 8.13 feet;
North 0041'45" East, 40.61 feet;
North 0144'23" West, 145.17 feet;
North 1201'38" West, 16.72 feet;
South 8632'51" West, 156.63 feet;
South 0546'00" East, 11.04 feet;
South 2236'18" West, 94.42 feet;
South 3235'45" West, 119.26 feet;
South 6102'05" West, 62.66 feet;
South 1612'44" West, 22.95 feet;
South 2834'51" West, 30.73 feet;
South 4406'14" West, 22.87 feet;
North 7302'08" West, 9.22 feet;
North 0410'31" West, 24.32 feet;
North 2714'31" East, 21.05 feet;
North 2253'30" East, 7.43 feet;
North 8859'13" West, 51.70 feet;
North 7932'56" West, 88.00 feet;
North 5819'46" West, 75.33 feet;
North 7116' 35" West, 43.42 feet for the southwest corner of
this tract;
Thence, along the west boundary of this tract, same being the
southerly shoreline of Packery channel as accepted by Texas General
Land Office per letter dated April 30, 1998, as follows:
North 5513'55" East, 28.37 feet;
South 6551'29" East, 41.25 feet;
South 6419'51" East, 64.68 feet;
North 5513'55" East, 340.15 feet;
North 3153' 53" East, 30.54 feet;
North 4456'59" East, 29.80 feet;
North 5127'13" East, 36.11 feet;
North 6550'19" East, 55.92 feet;
North 5535'00" East, 42.51 feet;
North 3331'45" East, 51.92 feet;
North 3831'45" East, 17.85 feet;
North 2025'53" East, 102.95 feet;
North 8159'03" East, 65.59 feet;
North 7234'53" East, 67.69 feet;
North 7149'28" East, 59.60 feet;
North 0151'03" East, 48.09 feet;
North 1745'00" East, 64.91 feet;
North 7804'21" West, 66.41 feet;
South 8715'19" West, 100.76 feet;
South 4935'03" West, 65.86 feet;
South 4910'34" West, 38.32 feet;
North 0043'54" East, 49.68 feet;
North 3724'35" East, 144.97 feet;
North 3746'47" East, 112.88 feet;
North 2005'37" East, 76.29 feet;
North 3242'34" East, 310.32 feet;
North 4030'15" East, 113.40 feet;
North 44~0'29" East, 95.30 feet for the northwest corner of
this tract;
Thence, along the north boundary of this tract as follows:
North 7259'05" East, 96.30 feet;
South 8810'08" East, 103.26 feet;
North 8903'23" East, 166.00 feet;
South 8418'24" East, 125.72 feet;
South 6940'03" East, 110.24 feet;
South 7156'18" East, 51.70 feet;
South 5305'14" East, 121.61 feet;
South 2754'36" East, 77.28 feet;
South 6035'14" East, 107.60 feet;
South 4953'53" East, 57.14 feet;
South 3733'52" East, 126.22 feet;
South 3753'45" East, 108.63 feet;
South 2007'15" East, 69.56 feet;
North 8007'23" East, 38.18 feet;
South 5527'21" East, 94.45 feet;
South 5143'16" East, 112.40 feet;
South 0900'57" West, 65.74 feet;
South 3739'14" East, 146.26 feet;
South 4543'19" East, 131.51 feet;
South 4140'27" East, 76.82 feet for the northeast corner of
this tract;
Thence, South 6811' 13" West, along the east boundary of said
Block 2 and of this tract, same being the west boundary of said
Padre Island Nueces County Park No. 2, a distance of 1592.69 feet to
the Point of Beginning and containing 45.856 acres 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, the
lieutenant governor, and the 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 are 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, 2009.