Departments of Utilities and Community Development
Reference: Lutz Reservoir Update and Comprehensive Funding Agreement Amendment #4
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez - City Manager
Prepared By: Scott Olsen - Director of Utilities
Date Prepared: June 10, 2024
PURPOSE
To provide an update on the Lutz Reservoir open space, parking lot, trail and non-potable reservoir pump station projects and to provide an overview of the proposed 4th Amendment to the Comprehensive Funding Agreement with Prairie Center.
BACKGROUND / DISCUSSION
The City entered into a Comprehensive Funding Plan, Master Development Agreement, Pre-Annexation Agreement, and Intergovernmental Agreement for Prairie Center in December of 2005. The financing agreement includes a list of public improvements that may be reimbursed through a series of financing, including a credit PIF (1.25%) and an additional PIF (1.00%) and other rebates. The agreement sets a reimbursement cap that has been increased through amendments to the agreement. The goal of the various agreements was to develop Prairie Center as a master planned, mixed-use project financed through metropolitan districts for the construction of public improvements. The agreement and its three approved amendments contain a complex mechanism of funding, repayment, and development requirements. Finance Director, Catrina Asher, provided an overview of the financial implications of the agreements at the September 26, 2023, City Council study session.
As part of the Agreement, open space and a trail connection by Lutz Reservoir was planned. Originally, Lutz Reservoir was intended to only serve the Prairie Center metropolitan districts and would not transfer ownership to the City. The City has been negotiating for transfer of Lutz Reservoir to the City for non-potable irrigation use in an expanded service area. This transfer will occur with the Fourth Amendment to the Comprehensive Funding Agreemen...
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