BRENHAM CITY COUNCIL TO CONSIDER MOU FOR MARKET SQUARE DEVELOPMENT
The Brenham City Council will meet Thursday to discuss a memorandum of understanding (MOU) with the developer of a residential and commercial project.
Market Square is a proposed 51-acre mixed use development between Market Street and Highway 290 that will include multi-family residential, commercial, retail, hospitality and restaurant properties.
The MOU is intended to establish the basis for a Chapter 380 agreement between the city and Market Square to reimburse qualified infrastructure costs to the developer.
This is outlined in a proposed policy also coming before the council on Thursday to form guidelines for reimbursement from revenues generated by projects within the city’s Tax Increment Reinvestment Zone (TIRZ). The policy refers to reimbursement for infrastructure costs incurred by private developers for public improvements that enhance the value of taxable property within the zone and are of general benefit to the city.
According to the MOU, Market Square anticipates the total property value of the fully developed project to exceed $133.8 million. The estimated total cost of the infrastructure to support the project, including water, wastewater, roads and drainage, is $7.5 million.
As the estimated appraised value of the fully developed land tract will exceed $100 million, 8 percent of the appraised property value can be reimbursed for qualified infrastructure costs. The maximum qualified infrastructure reimbursement for the project is $10 million. Only tax increment revenues generated by the properties on the land tract can be used to fund reimbursement.
The Chapter 380 agreement will terminate after the city has made its 20th year of reimbursement, once Market Square receives total reimbursement equal to the amount of qualified infrastructure costs, or once Market Square receives compensation equal to the maximum infrastructure reimbursement cap.
Also on Thursday, the council will:
- Act on purchasing $741,440 in equipment for the City of Brenham Street Department using certificates of obligation.
- Consider terminating the 2002 interlocal agreement between the city and Washington County providing for subdivision regulation within the City of Brenham’s extraterritorial jurisdiction (ETJ) and approving a new interlocal agreement between the city and county. The new agreement would establish the city as the authority of subdivision regulation only on property included on the city’s adopted annexation plan. Properties not included on the annexation plan and located in the city’s ETJ will be reviewed and approved through the Washington County Commissioners Court and would not be reviewed by the city’s Development Services Department or the Planning and Zoning Commission. County Commissioners approved the proposed agreement on March 8th.
- Hold a public hearing and potentially approve a request from the Brenham Housing Authority to adjust the zoning for the 1.2 acre property at 1003 Hasskarl Drive that currently serves as the site of the community center at Fairview Terrace. The zoning change from R-2 Mixed Residential Use to B-1 Local Business Mixed Use would allow BHA to expand the allowable uses for possible future development of the community center.
- Consider an amendment to the professional services agreement with Strand Associates, Inc. for Hurricane Harvey mitigation projects. The amendment covers language changes, scope of work modifications and sequence alignment when compared to the final General Land Office contract. No monetary amounts have changed.
- Consider bids for janitorial services for city facilities.
The council will meet Thursday at 1 p.m. at Brenham City Hall.
Click here to read the agenda packet for Thursday's meeting.