| The City of Horseshoe Bay successfully formed the | | | | 2. No public bidding / prevailing wage requirement; |
| Escondido Public Improvement District ("PID") and | | | | 3. Almost all types of public infrastructure are eligible |
| issued bonds successfully on September 29th, 2008. | | | | for reimbursement; |
| The bonds will fund approximately $5.475 million in | | | | 4. PID bond proceeds greatly reduce the need for |
| public facilities, including streets, water and sewer | | | | equity investors, which significantly reduces borrowing |
| facilities, storm drains, public parks, trails and | | | | costs for the project; |
| landscaping facilities. The PID bonds will allow the | | | | 5. The PID assessment on an individual lot can be |
| developer to recoup eligible infrastructure costs | | | | paid off in a lump sum or be paid off over 30 years. |
| before the first home closes, which will enhance | | | | This flexibility allows the developer to either pass the |
| profitability and greatly improve the internal rate of | | | | debt service burden to the homeowner or pay off |
| return for the project. | | | | the total assessment at home closing, depending on |
| Some additional advantages of PID financing include: | | | | market conditions. |
| | | | What is a PID? |
| 1. No TCEQ approval required; | | | | |