HomeMy WebLinkAboutIR 26-0077 - 2026-06-23 - Informal Report
1 of 4 1.3.2 PROPOSED RIO CLARO CAPITAL PUBLIC IMPROVEMENT DISTRICT IN COUNCIL DISTRICT 7 - BRADY KIRK, FWLAB ASSISTANT FINANCE DIRECTOR
INFORMAL REPORT TO CITY COUNCIL MEMBERS
SUBJECT: PROPOSED RIO CLARO CAPITAL PUBLIC IMPROVEMENT DISTRICT IN COUNCIL
DISTRICT 7 - BRADY KIRK, FWLAB ASSISTANT FINANCE DIRECTOR
DATE: 06/23/26 NUMBER: IR 26-0077
TO THE MAYOR AND MEMBERS OF THE CITY COUNCIL
The purpose of this Informal Report is to provide an overview of the proposed Rio Claro Capital
Public Improvement District (the “District”) in Far Northwest Fort Worth and the proposed
capital improvements to be funded by its accompanying assessment.
The Rio Claro development is an approximately 630-acre master planned community
consisting of single-family uses including open spaces and other public and private amenities
in the city limits. On June 24, 2025, the City Council authorized a development agreement,
executed on August 15, 2025, which included the developer’s intent to create a capital public
improvement district for funding infrastructure and other improvements.
Capital Public Improvement District Policy
Capital public improvement districts (CPIDs) are a tool used to fund capital improvements,
generally via assessments charged to property owners after the sale of lots in planned
developments. The City’s CPID Policy allows for the establishment of CPIDs to fund major capital
improvements when petitioners demonstrate an extraordinary public benefit. Major
improvements include arterial streets, bridges, and large water and sewer mains. The City
currently has three capital public improvement districts in Walsh Ranch, Rock Creek Ranch,
and Veale Ranch.
Rio Claro Capital Public Improvement District Petition
The proposed District petition was received June 11, 2026 and evaluated by staff pursuant to
Chapter 372 of the Texas Local Government Code. Preliminary parcel data suggests that the
petition meets the statutory requirements for both appraised value and land area and will be
confirmed prior to City Council action on PID establishment.
2 of 4 The proposed capital improvements complement the goals of Rio Claro’s development and
satisfy Chapter 372. The supporting materials include:
• A high-level description of proposed improvements and services
• Preliminary cost estimates and a structure for anticipated funding through
assessments and potential public/private contributions
• A proposed service plan framework identifying categories of eligible expenses
• A boundary map and supporting ownership analysis prepared in coordination with
staff
This petition proposes limiting the assessment rate that may be adopted by the City Council
based on the maximum amount of the estimated capital costs of $165,000,000. The
development agreement provides that the maximum tax rate equivalent, in combination with
the other taxing jurisdictions, is not to exceed $3.09 per $100 in assessed value.
Improvements authorized for the Rio Claro CPID, pursuant to City policy and the development
agreement, include:
1. Major improvements as outlined in the City’s CPID policy
2. Three collector roads: Round Ridge Road, Dosier Creek Parkway, and Eagle Quill Road,
along with associated utilities and improvements located within them
3. Additional authorized improvements in an amount of $15 million as provided in the
development agreement
Recommended Policy Waivers
Given the specific circumstances of the Rio Claro development, staff recommends several
waivers of the CPID Policy be approved when the CPID is formally created:
• Waive the requirement that a proposed CPID must consist of at least 1,500 acres in
total developable land area, as the development is roughly 630 acres. The Rio Claro
developer also owns 836 acres in the adjacent Tarrant County Capital PID, north of
Bonds Ranch Road, which relies in part on planned Rio Claro capital improvements.
• Waive the limitation that CPID-funded improvements will be restricted to Major
Infrastructure; CPID-funded improvements in the Rio Claro development will also
include collector roads, (specifically, Round Ridge Road, Dosier Creek Parkway, and
Eagle Quill Road) along with associated expenses, and other authorized
improvements in an amount of $15M.
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• Waive the requirement that developers requesting establishment of a C-PID with
the intent to issue bonds must identify land to be donated to the respective and
appropriate Independent School District(s).
• Waive the limitation that CPID assessments shall only be allowed to be levied for a
period of 20 years, allowing the assessment of levies for 30 years.
• Waive the limitation that debt obligations secured by and payable from C-PID
assessments used to reimburse for Major Infrastructure in the CPID shall be limited
to a single issuance or tranche, and no more than one year of interest may be
capitalized, allowing instead that capitalized interest funded by CPID bonds for the
Rio Claro development may be up to two years and the development may have
multiple bond issuances corresponding to separate improvement areas.
• Waive the requirement that the estimated appraised value to lien ratio with
proposed capital improvements shall be no less than 3:1 on a parcel by parcel
basis, allowing a value to lien ratio of 2:1.
• Waive the limitation that not more than 80% of the total cost of capital
improvements may be included in any debt issuance and at least 50% of the direct
transactional costs of debt issuance shall be paid by the applicant without
remuneration or inclusion in the debt financing, allowing instead that 100% of
capital improvement costs and direct transaction costs be funded through
assessments and/or bonds.
• Waive the requirement that bond financing will only be considered for CPIDs with a
qualified project of $10M or more, with the expectation that individual bond
issuances will be less than $10M but the sum of all issuances will exceed that
amount,
• Waive the requirement that all debt issuances and bond sales for C-PIDs shall
coincide with the City’s annual debt financing plan.
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Recommendation
Assuming the petition meets the minimum statutory requirements following final verification,
and acknowledging that proposed PID improvements support the City’s long-term
development goals, staff recommends the City Council hold a public hearing, make the
required findings under Chapter 372, and consider a resolution creating the District,
tentatively scheduled for September 15, 2026. City staff will bring forward a resolution to call
the public hearing in August.
If you have any questions concerning this information, please contact Brady Kirk, FWLab
Assistant Finance Director at 817-392-8712 or Brady.Kirk@fortworthtexas.gov.
Jesus “Jay” Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS