85R29473 JXC-F By: Cortez H.B. No. 4349 A BILL TO BE ENTITLED AN ACT relating to the creation of the Alamo Management District; providing authority to issue bonds; providing authority to impose assessments and fees. 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 3636 to read as follows: CHAPTER 3636. ALAMO MANAGEMENT DISTRICT SUBCHAPTER A. GENERAL PROVISIONS Sec. 3636.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City of San Antonio. (3) "Commissioner" means the commissioner of the General Land Office. (4) "County" means Bexar County. (5) "Director" means a board member. (6) "District" means the Alamo Management District. Sec. 3636.002. CREATION AND NATURE OF DISTRICT. The district is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3636.003. 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, county, 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 protect and preserve the Alamo shrine and the area surrounding the Alamo shrine. (c) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, tourism, recreation, the arts, entertainment, enjoyment of historic and cultural treasures, economic development, safety, health, and the public welfare in the district. (d) This chapter and the creation of the district may not be interpreted to relieve the city or county from providing the level of services provided on November 1, 2016, to the area in the district. The district is created to supplement and not to supplant city and county services provided in the district or city and county zoning or site development ordinances or orders applicable to the territory in the district. Sec. 3636.004. 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 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, employees, visitors, and consumers in the district, and of the public; (2) provide needed funding for the district to protect, preserve, maintain, and enhance the economic health and vitality of the district territory as a community, business, historic, and cultural center; and (3) promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic, cultural, and aesthetic beauty. (e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement. Parking facilities 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. 3636.005. 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 of the district contained in Section 2 of the Act enacting this chapter form a closure. 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 the district's: (1) organization, existence, or validity; (2) right to issue any type of bond or other obligation for a purpose for which the district is created or to pay the principal of and interest on a bond; (3) right to impose or collect an assessment; or (4) legality or operation. Sec. 3636.006. 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; (2) a tax abatement reinvestment zone created under Chapter 312, Tax Code; (3) an enterprise zone created under Chapter 2303, Government Code; or (4) a similar zone created for economic development purposes. Sec. 3636.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3636.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Sec. 3636.009. CONFLICT WITH RIVER AUTHORITY. If any authority or power granted to the district overlaps or conflicts with any authority or power granted to the San Antonio River Authority, the authority or power granted to the San Antonio River Authority shall supersede and control over the authority or power granted to the district, unless the San Antonio River Authority consents to the exercise of the authority or power by the district. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 3636.051. BOARD; TERMS. (a) The district is governed by a board of seven voting directors who serve staggered terms of four years, with three or four directors' terms expiring February 1 of each odd-numbered year. (b) The board by resolution may change the number of voting directors on the board if the board determines that the change is in the best interest of the district. The board may not consist of fewer than 7 or more than 15 voting directors. Sec. 3636.052. APPOINTMENT AND REMOVAL OF DIRECTORS. (a) The commissioner serves as the presiding officer of the board. (b) The commissioner shall appoint the remaining members of the board as follows: (1) a person with knowledge of Texas history; (2) a person with knowledge of preservation or operation of historic sites; (3) a person with knowledge of fund-raising or state funding sources and procedures; (4) a person with knowledge of municipal land use or site development regulation; (5) a person who owns a business in or near the district; and (6) a person qualified to serve as a director under Section 375.063, Local Government Code. (c) If the board increases the number of directors under Section 3636.051 to more than seven, the commissioner shall appoint the additional directors. The additional directors must be qualified to serve as a director under Section 375.063, Local Government Code. (d) If a vacancy occurs on the board, the commissioner shall appoint a director for the remainder of the unexpired term only with the approval of a majority of the remaining directors. (e) Each director serves at the pleasure of the commissioner. The commissioner may remove a director at any time in a manner authorized by law. Sec. 3636.053. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 3636.054. QUORUM; BOARD ACTION. (a) Section 375.071, Local Government Code, does not apply to the board. (b) For purposes of determining the requirements for a quorum of the board, the following are not counted: (1) a board position vacant for any reason, including death, resignation, or disqualification; (2) a director who is abstaining from participation in a vote because of a conflict of interest; or (3) a nonvoting director. (c) A concurrence of a majority of a quorum of directors is required for an official action of the district. (d) Official actions of the district must be made by written resolution. SUBCHAPTER C. POWERS AND DUTIES Sec. 3636.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 3636.102. STANDARDS FOR LAND USE, SITE DEVELOPMENT, ARCHITECTURAL DESIGN. (a) The district may adopt and enforce standards for land use, site development, and architectural design in the district to ensure that land use, site development, and architecture in the district are compatible with land use, site development, and architecture in the Alamo complex. (b) The district may create and adopt a master plan for land use, site development, and architectural design in the district. If the district adopts a master plan, any standards adopted under Subsection (a) must conform with the plan. (c) A standard adopted under this section may not be less strict than a standard adopted by the city that applies to land or architecture in the district. Sec. 3636.103. DEVELOPMENT CORPORATION POWERS. The district, using money available to the district, may exercise the powers given to a development corporation under Chapter 505, Local Government Code, including the power to own, operate, acquire, construct, lease, improve, or maintain a project under that chapter. Sec. 3636.104. 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. 3636.105. AGREEMENTS; GRANTS. (a) As provided by Chapter 375, Local Government Code, the district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. Sec. 3636.106. CONTRACT WITH POLITICAL SUBDIVISION. The county, the city, or another political subdivision of this state, without further authorization, may contract with the district to implement a project of the district or assist the district in providing a service authorized under this chapter. A contract under this section may: (1) be for a period on which the parties agree; (2) include terms on which the parties agree; (3) be payable from any source of revenue that may be available for that project or service; and (4) provide terms under which revenue collected at a district project or from a person using or purchasing a commodity or service at a district project may be paid or rebated to the district. Sec. 3636.107. 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. 3636.108. ANNEXATION. The district may annex territory that is adjacent to the district in the manner provided by Section 49.301, Water Code. Sec. 3636.109. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS Sec. 3636.151. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS. (a) The board may not finance a service or an improvement project under this chapter unless a written petition requesting that service or improvement is filed with the board. (b) The petition 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. 3636.152. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. Sec. 3636.153. AUTHORITY TO IMPOSE ASSESSMENTS, IMPACT FEES, AND OTHER FEES. (a) The district may impose an assessment, impact fee, or other fee as provided by Chapter 375, Local Government Code, to finance: (1) an improvement this chapter authorizes the district to construct or acquire; or (2) a service this chapter authorizes the district to provide. (b) The district may impose an assessment, impact fee, or other fee only on property on which a structure is, on or after the date the district is created: (1) constructed; or (2) renovated in a manner that removes, replaces, or renovates at least 50 percent of the square footage of the structure. Sec. 3636.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this chapter. (b) An assessment or reassessment, including 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 proceeding. (c) The lien is effective from the date of the board's resolution imposing the assessment until the date the assessment is paid. (d) The board may correct, add to, or delete assessments from its assessment rolls after notice and hearing as provided by Subchapter F, Chapter 375, Local Government Code. Sec. 3636.155. ASSESSMENT ABATEMENTS. The district may grant abatements of an assessment on property in the district. Sec. 3636.156. USE OF ELECTRICAL OR OPTICAL LINES. (a) The district may impose an assessment to pay the cost of: (1) burying or removing electrical power lines, telephone lines, cable or fiber-optic lines, or any other type of electrical or optical line; (2) removing poles and any elevated lines using the poles; and (3) reconnecting the lines described by Subdivision (2) to the buildings or other improvements to which the lines were connected. (b) The district may acquire, operate, or charge fees for the use of the district conduits for: (1) another person's: (A) telecommunications network; (B) fiber-optic cable; or (C) electronic transmission line; or (2) any other type of transmission line or supporting facility. (c) The district may not require a person to use a district conduit. (d) The district may not impose an assessment under this section on the property, including the equipment, rights-of-way, facilities, or improvements, of: (1) a telecommunications provider, as defined by Section 51.002, Utilities Code; or (2) a cable service provider or a video service provider, as defined by Section 66.002, Utilities Code. (e) Subsection (d) does not apply to property that is used for an office. Sec. 3636.157. NO AD VALOREM TAX. The district may not impose an ad valorem tax. Sec. 3636.158. BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds, notes, or other obligations payable wholly or partly from assessments or other money available to the district in the manner provided 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 other type of obligation. SUBCHAPTER E. DISSOLUTION BY BOARD Sec. 3636.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT. (a) The board may dissolve the district regardless of whether the district has debt. Section 375.264, Local Government Code, does not apply to the district. (b) If the district has debt when it is dissolved, the district shall remain in existence solely for the purpose of discharging its debts. The dissolution is effective when all debts have been discharged. SUBCHAPTER Z. SPECIAL BOND PROVISIONS Sec. 3636.901. APPLICABILITY. This subchapter applies to bonds payable wholly or partly from revenue derived from assessments on real property in the district. Sec. 3636.902. CONFLICT OF LAWS. In the event of a conflict between this subchapter and any other law, this subchapter prevails. Sec. 3636.903. WRITTEN AGREEMENT REGARDING SPECIAL APPRAISALS. Before issuing bonds, the district and any person to whom the governing body of the district intends that proceeds of the bonds be distributed, including a developer or other owner of land in the district, and any entity acting as a lender to a developer or other owner of land in the district for the purpose of a project relating to the district, must enter into a written agreement that: (1) waives for the term of the agreement the right to a special appraisal with respect to taxation by the district under Subchapters B, C, D, E, F, and H, Chapter 23, Tax Code; and (2) remains in effect for 30 years and is binding on the parties, on entities related to or affiliated with the parties, and on their successors and assignees. Sec. 3636.904. REQUIREMENTS FOR ADVERTISING BOND ISSUE. The district may not advertise for an issuance of bonds until the completion of at least 25 percent of the projected value of the improvements, including houses and other buildings, that are liable for district assessments and necessary to support the district bonds. Sec. 3636.905. REQUIREMENTS FOR BOND ISSUE. The district may not issue bonds until: (1) the district submits to the Texas Commission on Environmental Quality: (A) an engineer's report describing the project for which the bonds will provide funding, including data, profiles, maps, plans, and specifications related to the project; and (B) a cash flow analysis to determine the projected rate of assessment, which includes the following assumptions: (i) each ending balance for debt service in the analysis is not less than 25 percent of the following year's debt service requirement; (ii) interest income is only shown on the ending balance for debt service for the first two years; and (iii) the projected rate of assessment is level or decreasing for the life of the bonds issued by the district; (2) the completion of at least 75 percent of the projected value of the improvements, including houses and other buildings, that are liable for district assessments and necessary to support the district bonds; and (3) the district has obtained an independent market study from a firm recognized in the area of real estate market analysis supporting the development projects for the real property that is liable for district assessments and necessary to support the district bonds. Sec. 3636.906. REQUIREMENTS FOR COLLECTION OF REVENUE TO PAY CERTAIN BONDS. The district may not collect an assessment to be used for the payment of bonds to be issued to finance the construction of underground water, wastewater, and drainage facilities until: (1) the completion of at least 95 percent of the underground water, wastewater, and drainage facilities financed from bond proceeds that are necessary to serve the projected build-out, as certified by the district's engineer; (2) the district or other appropriate party has secured the groundwater, surface water, and water discharge permits that are necessary to secure capacity to support the projected build-out; (3) the completion of at least 95 percent of lift station, water plant, and sewage treatment plant capacity sufficient to serve the connections constructed in the project for a period of not less than 18 months, as certified by the district's engineer; and (4) the completion of at least 95 percent of the streets and roads that are necessary to provide access to the areas served by utilities and to be financed by the proceeds of the bonds, as certified by the district's engineer and constructed in accordance with city or county standards. SECTION 2. The Alamo Management District initially includes all the territory contained in the following area: From the midpoint of the intersection of W Market Street and N Presa Street; Northward along N Presa Street, to the intersection of E Houston Street and N Presa Street; Eastward along E Houston Street to the intersection of E Houston Street and Jefferson; Northward along Jefferson to the intersection of Jefferson and E Travis Street; Eastward along E Travis Street, to the intersection of N Alamo Street and E Travis Street; Northeastward along N Alamo Street to the intersection of 4th Street and N Alamo Street; Southeastward along 4th Street to the intersection of Bonham Street and 4th Street; Northeastward along Bonham Street to the intersection of Elm Street and Bonham Street; Southward along Elm Street to the intersection of E Houston Street and Elm Street; Eastward along E Houston Street to IH-37; Southeastward along the south-bound lanes of IH-37, to the intersection of IH-37 and E Market Street; West-northwestward along E Market Street to the point of origin, the intersection of W Market Street and N Presa Street. 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) The general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with. (e) 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, 2017.