Annex plans proceed
Commissioners consider up to $5 million in certificates of obligation
By DAVID LOWE Staff Writer

The Lampasas County Commissioners Court on Monday unanimously approved a notice of intent to issue a maximum of $5 million in certificates of obligation for expansion of the Lampasas County Office Building, or "annex."

The vote does not authorize the county to issue certificates of obligation yet, although the Commissioners Court on April 7 can set the official amount it will seek.

The waiting period gives citizens time to gather signatures for a petition against the issuance of certificates, if they choose. County Auditor Jack Clark said county officials can use the time to obtain architects' estimates on the cost of expanding the annex building.

If architects estimate the cost to be substantially less than $5 million, the Commissioners Court in April can cap its issuance of certificates of obligation at a lower figure than $5 million, Clark said.

The auditor said depending on architects' advice, he might recommend setting a maximum of about $4.2 million for the expansion, as long as that figure included sufficient contingency funds in case of a dramatic increase in construction materials. Any funds not spent on construction would go into debt service, he said.

Precinct 2 Commissioner Alex Wittenburg and Precinct 3 Commissioner Lowell Ivey initially expressed reservations about voting for a notice of intent related to the annex, saying they consider building a new county jail a higher priority.

County Judge Wayne Boultinghouse and Precinct 1 Commissioner Robert Vincent said they also believe the county needs a new jail soon. With rising construction costs, however, both said voting for a notice of intent about the annex would allow the county to proceed with expanding the Pecan Street building and might save money.

"How much money are we costing our taxpayers by delaying this?" Vincent asked.

The commissioner said he would like another vote on funding for a new jail in November, if not sooner. Vincent and other commissioners agreed, though, that by pursuing annex expansion as soon as possible they would avoid having to pair that funding with jail certificates of obligation, as the county did last fall. Several members of the court said they believed the annex funding stood little chance of passing last November because it was coupled with funds for a proposed new jail.

Boultinghouse and Vincent added that the county needs to proceed with annex expansion because the former Brooks grocery store next to the county building is falling into disrepair and poses a public health hazard.

Ivey said he has received numerous telephone calls from the city code enforcement officer about the building.

County resident Jeff Jackson asked the court to consider the former grocery store's historic status as commissioners plan additions to the annex. Three or four other historic structures downtown are at risk, Jackson said, and he told commissioners that demolition of the Brooks building would remove a historic structure from the National Registry of Historic Places.

"If we lose a number of those structures we'll lose the National Historic Register District," he said.

Jackson added he believes commissioners should build a new jail before expanding the annex. "I'd almost rather see you issuing these certificates to build a jail."

By publishing a notice of intent, the county is giving citizens a chance to organize a petition if they oppose, Vincent said. "We're not doing anything to prevent the people of this county from having a voice," the commissioner said. "We're giving them advanced notice."

After voting on the notice of intent, the court went into executive session to discuss a possible sale of property near Dollar General.

In other business, the court voted 4-1, with Precinct 4 Commissioner Jack B. Cox opposed, to participate with the city of Copperas Cove in a tax increment reinvestment zone designed to promote commercial and residential development in east Lampasas County.

Under the TIRZ, Lampasas County will keep all the property tax revenue it currently receives from a 372-acre property within Copperas Cove's city limits, where a developer hopes to build more than 500 single-family houses and up to 45 acres of retail stores. To reimburse the developer for installing water, sewer and drainage infrastructure, the county will contribute 50 percent of its increased property tax revenue from the development each year until the infrastructure expense has been repaid.

Once Lampasas County and Copperas Cove -- which will contribute all of its increased property tax revenue from the acreage -- reimburse the developer, the TIRZ will terminate, and the entities will keep all taxes generated from the development.

Cox cast a 'no' vote because he did not want to agree to participate until the county knows how much property tax it would be contributing and when the participating entities can terminate the tax zone.

David Hawes, a representative for Hawes Hill Calderon LLP, which is working with Copperas Cove on the development, told the court at its Jan. 28 meeting that TIRZ boards often set a 30-year expiration date. Cox said he was concerned about "pro-rating" taxes for that long.

Copperas Cove City Manager Andrea Gardner said city officials will present the Commissioners Court with a detailed project plan and an interlocal agreement before the two entities officially create a TIRZ. Officials cannot predict exactly how long the TIRZ will continue, though, she said. "There are a lot of variables that come into play when we talk about how soon we can pay this developer back," she said.

Cox also expressed concerns about reimbursing the developer, as the county never has entered into a similar agreement. "For us to exempt or defer taxes for one developer and not to discuss or consider exempting or deferring taxes for another developer is also something we need to discuss," Cox added.

Ray Don Clayton, a Copperas Cove city councilman, said the agreement to pay the developer for installing water is essential to attracting the business development and the tax revenue it could generate.

"This development will not take place if we don't get water into there," Clayton said.

Because of agricultural exemptions, the 372-acre property to which the TIRZ would apply generates about $7,000 annually for the county, Clark said. At the Jan. 28 meeting, however, Hawes estimated the acreage's taxable value might increase to $140 million from its current value of $1.25 million by 2014, when construction tentatively is scheduled to end.

Sales tax revenue from commercial establishments in the zone would allow Lampasas County to decrease its property tax rate, Clark added. "All it does is take commercial property that's going to be developed and speed it up," said the auditor of the TIRZ agreement. "You're not losing any money, because you're not getting anything (much) on it now."