PARIS, Texas — The Paris City Council on Oct. 14 voted unanimously to create Forest Brook Public Improvement District No. 1, approve a development agreement with Lone Star Plan Development LLC and adopt an escrow (dissolution) agreement that sets a 24‑month inactivity trigger for the district.

The measures establish the PID as a legal “shell” to allow the developer to proceed with horizontal infrastructure — streets, sewer, water and related public improvements — and outline how future assessments and bonds would be handled. "It creates the PID, and it does not obligate the city to do anything more," said Chris Settle of Miles Per Hour Legal, the council's consultant on the legal steps.

The development covers roughly 59 acres inside the city and is planned in three phases of finished lots. Developer Nathan Spaulding of Lone Star Plan Development told the council construction has begun on the first section along Jefferson Road and said the initial phase includes about 87 lots the team expects to have ready in the first quarter of 2025. The second and third phases are each described as about 102 lots; the developer said the total for the site is about 291 lots after a small area was set aside for a pocket park.

Why it matters: The PID framework allows infrastructure costs to be paid by assessments on properties inside the PID rather than by general city funds. Council members emphasized the city will not use municipal money for PID improvements; any assessment levied would be tied to the properties inside the PID boundary and would appear with the property tax bill for owners within that boundary.

How it works: The council adopted a creation ordinance that, according to consultants, immediately establishes the PID in the real property records once filed. The development agreement sets responsibilities for the city and the developer and lists infrastructure items the developer will deliver, including concrete streets and a pocket park. The escrow/dissolution agreement names an escrow agent to hold a petition for dissolution and allows the city to dissolve the PID if, among other conditions set in that agreement, no assessments are levied within 24 months.

Consultant Jamie Schulte of P3 Works and others explained that assessments themselves are not levied by this step; assessments — the yearly charges tied to individual properties — would require a future service and assessment plan (SAP), an adoption of an assessment ordinance and likely the issuance of PID bonds. Once assessments are levied and bonds are outstanding, consultants said, dissolution becomes unlikely because the PID secures bondholders.

Developer plans and timing: Spaulding described the developer as a horizontal developer that will install infrastructure and sell finished lots to home builders. He told council the first phase of about 87 lots aims for lot completion around January 2025 and builders then would construct houses. The developer named regional builders expected to participate in the project, including Wildwood Homes (Sherman) and a builder identified in the record as "Doctor Horton." Spaulding said typical lot dimensions are approximately 55 by 115 feet and typical foundation slabs are about 40 by 70 feet; builders may offer single‑ and two‑story plans with a range of home sizes.

Traffic and disclosures: The council heard that a traffic impact analysis performed as a condition of the 2022 planned‑development zoning concluded the development can rely on Jefferson Road; the city approved that study. Council members asked that the city receive regular updates on sales and construction progress. Consultants and staff confirmed that state law requires a homebuyer disclosure notice for property sold within a PID; the Texas Property Code homebuyer disclosure will be provided to lot purchasers.

Financial safeguards and homeowner impact: Consultants repeatedly told council that no city general fund dollars are pledged to the PID. The assessments to repay bonds would be levied only on property owners inside the PID boundaries — initially the developer, later the builders and ultimately the lot buyers — and the assessment amount would be tied to a benefit analysis in the SAP. City staff said the PID structure typically encourages timely sale and build‑out of lots because owners will not want to carry assessment costs.

Council action: Council voted 5–0 to adopt the ordinance creating Forest Brook PID No. 1, to approve the development agreement with Lone Star Plan Development LLC, and to approve the escrow/dissolution agreement (naming the city attorney as escrow agent as discussed during the meeting). No member voted against the measures.

What’s next: If the developer pursues bond financing and the city adopts an assessment ordinance, a service and assessment plan will be prepared and the city will consider levying assessments and issuing bonds to fund construction of PID infrastructure. Council members requested periodic updates from the developer and staff as phases progress.

(Quotes and facts in this article are attributable to participants during the Oct. 14, 2024 Paris City Council meeting.)