RDAP 2022-07 2022-11-21RESOLUTION NO. RDAP
2022 d'7
A RESOLUTION OF THE DEVELOPMENT AUTHORITY OF PEARLAND
(DAP), TEXAS' AUTHORIZING CERTAIN DEVELOPER REIMBURSEMENTS
AND A REIMBURSEMENT TO THE CITY OF PEARLAND, TEXAS FOR TIRZ
INFRASTRUCTURE IMPROVEMENTS FROM PROCEEDS AVAILABLE FROM
THE SERIES 2022 DAP BOND SALE
BE IT RESOLVED BY DAP BOARD OF DIRECTORS:
Section 1. That the Board of Directors hereby authorizes relrnbursements in the amounts
shown on Exhibit A to KB Home Lone Star, Inc., CCR Reserve Holdings, LLC, 518SCR,
Ltd. and the City of Pearland, Texas for TIRZ infrastructure improvements from bond
proceeds from the DAP Tax Increment Contract Revenue Bonds, Series 2022
PASSED, APPROVED, AND ADOPTED this November 21, 2022.
ATTEST
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Development Authority of Pearland
Chairman
eiegelv
Deve16 rfient Authority Pearland
Secretary
4143-3148-0130.2
44198-13
Exhibit A
Reimbursements from DAP 2022 Bond Proceeds for TIRZ Infrastructure Improvements
Amount Reimbursed
KB Home Lone Star, Inc. $172,504
CCR Reserve Holdings, LLC $2,667,448
518 SCR, Ltd. $622,704
City of Pearland, Texas $10,088,344
4143-3148-0130.2
44198-13
DEVELOPMENT AUTHORITY OF PEARLAND
City Of Pearland, Texas
November 21, 2022
McGrath & Co., PLLC
2900 North Loop West, Suite 880
Houston, Texas 77092
In connection with your engagement to apply agreed-upon procedures on amounts
reimbursable to KB Home Lone Star, Inc., CCAC Reserve Holdings, LLC, and 518 SCR, Ltd., (the
"Developers") and the City of Pearland (the "City") from the Authority's $13,735,000 Tax
Increment Contract Revenue Bonds, Series 2022, we confirm, to the best of our knowledge and
belief, the following representations made to you during your engagement.
1) We acknowledge that we are responsible for amounts reimbursable to the Developers.
2) We have provided you with all relevant information and access under the terms of our
agreement.
3) We have disclosed to you any known matters contradicting amounts reimbursable to the
Developers.
4) We have disclosed to you any communications from regulatory agencies, other
independent practitioners or consultants, and others affecting the amounts reimbursable to
the Developers, including communications received as of the date of your report,
November 21, 2022.
5) We are not aware of any material misstatements in the amounts reimbursable to the
Developers.
Signature
c
C airman, Board of Directors
DEVELOPMENT AUTHORITY OF PEARLAND
City Of Pearland, Texas
Independent Accountant's Report on Application of
Agreed -Upon Procedures of Costs Reimbursable to
KB Home Lone Star, Inc.,
CCAC Reserve Holdings, LLC,
518 SCR, Ltd., and
City of Pearland, Texas from
$13,735,000 Tax Increment Contract Revenue Bonds, Series 2022
As of December 20, 2022
Draft
McGrath & Co., PLLC
Certified Public Accountants
2900 North Loop West, Suite 880
Houston, Texas 77092
713-493-2620
Independent Accountant's Report on Applying Agreed -Upon Procedures
Board of Directors
Development Authority of Pearland
City of Pearland, Texas
We have performed the procedures enumerated below on amounts reimbursable to KB Home Lone Star,
Inc., CCAC Reserve Holdings, LLC, and 518 SCR, Ltd., (the "Developers") and the City of Pearland (the
"City") from the Authority's $13,735,000 Tax Increment Contract Revenue Bonds, Series 2022. The
Development Authority of Pearland (the "Authority") is responsible for amounts reimbursable to the
Developers and the City.
The Board of Directors of the Authority has agreed to and acknowledged that the procedures performed
are appropriate to meet the intended purpose of providing users with information on the distribution of
bond proceeds to the Developers and the City for costs incurred on behalf of Tax Increment Zone No. 2
(the 'TIRZ"). This report may not be suitable for any other purpose. The procedures performed may not
address all the items of interest to a user of this report and may not meet the needs of all users of this
report and, as such, users are responsible for determining whether the procedures performed are
appropriate for their purposes.
The procedures and any associated findings are as follows:
1. We allocated principal and interest available to be reimbursed to unreimbursed letter financing
agreements of the TIRZ based on the relevant letter financing agreements. The projects and
amount to be reimbursed have been selected by the Authority.
The current reimbursement of $13,551,000 available from the Authority's $13,735,000 Tax
Increment Contract Revenue Bonds, Series 2022 has been allocated as follows:
Current Accrued Current
Entity LFA Principal Interest Reimbursement
KB Home Lone Star, Inc. LFA 14-06-002 $ 136,337 $ 36,167 $ 172,504
CCAC Reserve Holdings, LLC LFA 16-08-001 2,203,751 463,697 2,667,448
518 SCR, Ltd. LFA 17-10-001 520,661 102,043 622,704
City of Pearland, Texas LFA 19-10-001 8,347,832 1,740,512 10,088,344
$ 11,208,581 $ 2,342,419 $ 13,551,000
2. Documentation supporting items, amounts, and proof of payments for which reimbursement has
been requested has been inspected.
No exceptions were found as a result of this procedure.
1
Draft
Board of Directors
Development Authority of Pearland
City of Pearland, Texas
3. We recalculated interest on amounts reimbursable in accordance with the reimbursement
agreements and letter financing agreements.
Interest payable is presented in the attached Schedule A
4. A draft of this report with the attached schedule was provided to the Authority's personnel,
consultants, the Developers, and the City, review prior to issuing a final report.
5. The attached Schedule A summarizes amounts reimbursable to the Developers and the City for
the current period, previous reimbursements made, and remaining unreimbursed letter financing
agreements.
We were engaged by the Authority to perform this agreed -upon procedures engagement and conducted
our engagement in accordance with attestation standards established by the American Institute of
Certified Public Accountants. We were not engaged to and did not conduct an examination or review
engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on
amounts reimbursable to the Developers and the City. Accordingly, we do not express such an opinion or
conclusion. Had we performed additional procedures, other matters might have come to our attention
that would have been reported to you.
We are required to be independent of the Authority and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements related to our agreed -upon procedures engagement.
This report is intended solely for the information and use of the Authority, the TIRZ, the Developers, and
the City, and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
Houston, Texas
November 21, 2022
2
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SCHEDULE A
TAX INCREMENT REINVESTMENT ZONE NO. 2 / DEVELOPMENT AUTHORITY OF PEARLAND
CITY OF PEARLAND, TEXAS
RECAPITULATION OF AMOUNTS DUE TO DEVELOPERS AND THE CITY OF PEARLAND
As of December 20, 2022
Original
LFA LFA Interest Interest Actual Computed PREVIOUSLY REIMBURSED
LFA Entity Date Amount Rate Cap Cost Interest Total Cost Interest Total
Creation Costs
Shadow Creek Ranch Development Company. L.F 6/19/2000 $ 900,000 6.50% None $ 882,434 $ 352,974 $ 1,235,408 $ 882,434 $ 352,974 $ 1,235,408 $
LFA 99-11-001 (Entry)
Shadow Creek Ranch Development Company. L.F 11/8/1999 919,150 * 6.50% None 919,150 301,131 1,220,281 919,150 301,131 1,220,281
LFA 01-001 (V1P1A)
Shadow Creek Ranch Development Company. L.F 2/21/2000 6,524,629 6.50% None 4,160,628 1,082,901 5,243,529 4,160,628 1,082,901 5,243,529
LFA 00-10-002 (V1P1B)
Shadow Creek Ranch Development Company. L.F 10/9/2000 10,318,290 6.50% None 8,414,398 2,178,892 10,593,290 8,414,398 2,178,892 10,593,290
LFA 01-04-001 (V1P1B)
Shadow Creek Ranch Development Company. L.F 8/23/2001 1,967,061 6.50% None 630,249 175,635 805,884 630,249 175,635 805,884
LFA 03-10-004 (Kingsley Drive, Phase 3)
Shadow Creek Ranch Development Company. L.F 10/7/2003 3,529,173 6.50% None 2,429,087 257,838 2,686,925 2,429,087 362,790 2,791,877
LFA 04-07-006 (Traffic Signal Shadow Creek PKWY/Kingsley)
Shadow Creek Ranch Development Company. L.F 7/13/2004 287,788 6.50% None 263,470 10,936 274,406 263,470 30,108 293,578
LFA 04-07-007 (Parks and Trails Grading and Infrastructure)
Shadow Creek Ranch Development Company. L.F 7/13/2004 1,007,256 6.50% None 777,066 45,664 822,730 777,066 100,135 877,201
LFA 03-10-001 (Remaining Village 2, Phase 2 Improvements)
Shadow Creek Ranch Development Company. L.F 10/7/2003 7,554,654 6.50% None 7,306,587 793,059 8,099,646 7,306,587 1,186,453 8,493,040
LFA 04-07-002 (Fire/Police Station Land Cost)
Shadow Creek Ranch Development Company. L.F 7/13/2004 408,668 6.50% None 408,688 104,763 513,451 408,688 147,266 555,954
LFA 02-08-001 (Village 1 and Village 2 Phase 2 Improvements)
Shadow Creek Ranch Development Company. L.F 8/6/2002 4,727,516 6.50% None 4,714,681 889,173 5,603,854 4,714,681 1,314,851 6,029,532
LFA 01-11-002 (Additional Village 1 and Village 2 Improvements)
Shadow Creek Ranch Development Company. L.F 11/12/2001 24,509,430 6.50% None 24,444,754 4,215,469 28,660,223 24,444,754 8,610,822 33,055,576
LFA 03-10-002 (Village 3, Phase 1 and 2 Improvements)
Shadow Creek Ranch Development Company. L.F 10/7/2003 7,809,950 6.50% None 7,806,658 999,791 8,806,449 7,806,658 3,927,711 11,734,369
LFA 06-03-001 (Elementary School #2 Site)
Shadow Creek Ranch Development Company. L.F 3/27/2006 1,687,801 6.50% None 1,322,037 43,555 1,365,592 1,322,037 564,564 1,886,601
LFA 06-08-002 (Library Site)
Shadow Creek Ranch Development Company. L.F 8/28/2006 481,569 6.50% None 377,208 31,236 408,444 377,208 179,892 557,100
LFA 04-07-003 (Regional Nature Park)
Shadow Creek Ranch Development Company. L.F 7/13/2004 760,988 6.50% None 736,694 309,359 846,053 736,694 431,618 1,168,312
LFA 03-10-005 (Kingsley Drive Phase 4 Improvements)
Shadow Creek Ranch Development Company. L.F 10/7/2003 4,486,342 6.50% None 4,469,032 430,112 4,899,144 4,469,032 2,341,973 6,811,005
LFA 03-10-006 (Village 5 Improvements)
Shadow Creek Ranch Development Company. L.F 10/7/2003 7,055,177 6.50% None 7,027,411 1,080,140 8,107,551 7,027,411 4,246,723 11,274,134
LFA 04-07-005 (Village 4, Phase 1 and Reflection Bay North Improvements)
Shadow Creek Ranch Development Company. L.F 4/7/2005 3,354,452 6.50% None 3,312,322 265,453 3,577,775 3,312,322 1,911,464 5,223,786
LFA 03-10-003 (Village 3, Phase 3 Improvements)
Shadow Creek Ranch Development Company. L.F 10/7/2003 7,711,582 6.50% None 7,429,145 1,564,833 8,993,978 7,429,145 5,382,022 12,811,167
LFA 04-07-004 (Village 4, Phase 4 Improvements)
Shadow Creek Ranch Development Company. L.F 7/13/2004 8,204,999 6.50% None 8,101,288 1,095,913 9,197,201 8,101,288 5,523,544 13,624,832
LFA 06-01-001 (Kingsley Drive North)
Shadow Creek Ranch Development Company. L.F 1/30/2006 6,417,644 6.50% None 6,011,844 959,134 6,970,978 6,011,844 4,317,604 10,329,448
Unpaid
CURRENT REIMBURSEMENT Balance Interest as of
Cost Interest Total Remaining 12/20/2022
Draft
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SCHEDULE A (continued)
TAX INCREMENT REINVESTMENT ZONE NO. 2 / DEVELOPMENT AUTHORITY OF PEARLAND
CITY OF PEARLAND, TEXAS
RECAPITULATION OF AMOUNTS DUE TO DEVELOPERS AND THE CITY OF PEARLAND
As of December 20, 2022
Original
LFA LFA Interest Interest Actual Computed
LFA Entity Date Amount Rate Cap Cost Interest
Total
Unpaid
PREVIOUSLY REIMBURSED CURRENT REIMBURSEMENT Balance Interest as of
Cost Interest Total Cost Interest Total Remaining 12/20/2022
LFA 06-01-002 (Additional Village 4 Improvements)
Shadow Creek Ranch Development Company. L.F 1/30/2006 $ 9,392,437 6.50% None $ 8,344,671 $ 1,294,925 $ 9,639,596 $ 8,344,671 $ 6,263,330 $ 14,608,001 $
LFA 06-08-001 (Additional Sidewalks)
Shadow Creek Ranch Development Company. L.F 8/28/2006 2,356,305 6.50% None 1,561,888 277,247 1,839,135 1,561,888 1,271,891 2,833,779
LFA 06-01-003 (Remaining Village 4 Improvements)
Shadow Creek Ranch Development Company. L.F 1/30/2006 7,120,532 6.50% None 4,923,656 566,284 5,489,940 4,923,656 3,724,036 8,647,692
LFA 06-08-003 (SH 288 Frontage Road)
Shadow Creek Ranch Development Company. L.F 8/28/2006 1,276,667 6.50% None 1,000,000 52,016 1,052,016 1,000,000 661,265 1,661,265
LFA 07-03-001 (Village 7, Phase 1 Broadway Improvements)
Shadow Creek Ranch Development Company. L.F 3/12/2007 1,271,499 6.50% None 1,085,783 194,578 1,280,361 1,085,783 725,348 1,811,131
LFA 08-05-001 (Broadway to FM 521)
Shadow Creek Ranch Development Company. L.F 5/5/2008 9,482,989 6.50% None 5,422,198 413,978 5,836,176 5,422,198 3,301,688 8,723,886
LFA 08-05-002 (Broadway Landscape - North Side)
Shadow Creek Ranch Development Company. L.F 5/5/2008 1,158,218 6.50% None 139,948 5,697 145,645 139,948 82,567 222,515
LFA 06-10-001 Road Infrastructure, Pipeline Relocation and Site Drainage
Shadow Creek Retail, L.P. 10/23/2006 9,949,618 * 6.50% 5 years 9,949,618 1,065,587 11,015,205 9,949,618 4,300,985 14,250,603
LFA 07-03-002 Landscaping, Detention/Drainage, Relocation of Overhead Utilities and Plan Amendment Costs
Shadow Creek Retail, L.P. 3/12/2007 1,851,598 * 6.50% 5 years 1,851,598 113,137 1,964,735 1,851,598 715,236 2,566,834
LFA 08-01-001 (Broadway Improvements)
City of Pearland, Texas 1/15/2008 8,449,086 6.50% 5 years 5,997,980 579,392 6,577,372 5,997,980 2,529,803 8,527,783
LFA 10-06-001 (Discovery Bay Extension SH 288)
Shadow Creek Ranch Development Company. L.F 6/7/2010 912,908 6.50% None 458,209 17,852 476,061 458,209 239,556 697,765
LFA 10-06-002 (SCH-4 Site)
Shadow Creek Ranch Development Company. L.F 6/7/2010 2,530,620 6.50% None 1,753,316 182,969 1,936,285 1,753,316 1,031,310 2,784,626
LFA 10-06-003 (SCH-5 Site)
Shadow Creek Ranch Development Company. L.F 6/7/2010 4,935,370 6.50% None 3,419,425 214,955 3,634,380 3,419,425 1,998,382 5,417,807
LFA 13-06-001 (SCH-3 Site)
Shadow Creek Ranch Development Company. L.F 6/24/2013 2,382,379 6.50% None 1,514,705 90,364 1,605,069 1,514,705 708,106 2,222,811
LFA 12-06-001 (Village 7, Phase 1)
518 SCR, Ltd. 6/11/2012 10,571,086 6.50% 5 years 3,767,156 544,659 4,311,815 3,767,156 1,768,985 5,536,141
LFA 13-06-002 (Southlake Phase 2)
518 SCR, Ltd. 6/24/2013 9,102,286 6.50% 5 years 3,077,854 852,857 3,930,711 3,077,854 1,725,998 4,803,852
LFA 14-06-001 (Southlake Phase 3)
518 SCR, Ltd. 6/23/2014 3,548,252 6.50% 5 years 1,082,895 232,230 1,315,125 1,082,895 538,729 1,621,624
LFA 14-06-002 (Shadow Grove Phase 1)
KB Home Lone Star, Inc. 6/23/2014 7,448,692 6.50% 5 years 2,360,924 694,156 3,055,080 2,224,587 980,912 3,205,499 136,337 36,167 172,504
LFA 16-08-001 (Road to Serve Reserve at Shadow Creek)
CCAC Reserve Holdings, LLC 8/8/2016 2,075,106 6.50% 5 years 2,203,751 195,262 2,399,013 - - - 2,203,751 463,697 2,667,448
LFA 17-10-001 (CR 59 Improvements)
518 SCR, Ltd. 10/23/2017 1,091,520 6.50% 5 years 520,661 74,875 595,536 - - - 520,661 102,043 622,704 -
LFA 19-10-001 (Fire Station No. 8)
City of Pearland, Texas 10/28/2019 13,825,472 6.50% 5 years 11,832,853 1,668,279 13,501,132 - - - 8,347,832 1,740,512 10,088,344 3,485,021 545,182
19-10-002 (Shadow Creek Ranch Library) **
City of Pearland, Texas 10/28/2019 24,050,284 6.50% 5 years
Draft
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LFA
LFA Entity Date
19-10-003 (Shadow Creek Ranch Nature Trail Connection) **
City of Pearland, Texas 10/28/2019 $
19-10-004 (FM 521 Improvements) **
Fort Bend County, Texas
20-09-001 (Shadow Creek Park Phase II) **
City of Pearland, Texas
21-02-001 (Shadow Creek Sidewalk Extensions) **
City of Pearland, Texas
22-02-001 (Shadow Creek Ranch Trails Phase II) **
City of Pearland, Texas
10/28/2019
9/23/2020
2/4/2021
3/2/2022
22-02-002 (Shadow Creek Parkway Landscaping, Lighting, Sidewalks) **
City of Pearland, Texas 3/2/2022
22-02-003 (Shadow Creek Ranch Intersection Improvements) **
City of Pearland, Texas 3/2/2022
SUMMARY BY ENTITY
Entity
Shadow Creek Ranch Development Company. L.P.
Shadow Creek Retail, L.P.
City of Pearland, Texas
518 SCR, Ltd.
KB Home Lone Star, Inc.
CCAC Reserve Holdings, LLC
Fort Bend County, Texas
LFA TOTALS
LFA
Amount
790,910
2,479,000
10,179,283
1,216,141
1,696,696
8,241,095
9,184,273
$ 279,194,441
LFA
Totals
$ 153,444,043
11,801,216
77,633,240
24,313,144
7,448,692
2,075,106
2,479,000
$ 279,194,441
SCHEDULE A (continued)
TAX INCREMENT REINVESTMENT ZONE NO. 2 / DEVELOPMENT AUTHORITY OF PEARLAND
CITY OF PEARLAND, TEXAS
RECAPITULATION OF AMOUNTS DUE TO DEVELOPERS AND THE CITY OF PEARLAND
As of December 20, 2022
Interest Interest Actual
Rate C� Cost
6.50% 5 years $
6.50% 5 years
6.50% 5 years
6.50% 5 years
6.50% 5 years
6.50% 5 years
6.50% 5 years
Original
Computed
Interest
Total
PREVIOUSLY REIMBURSED
CURRENT REIMBURSEMENT
Cost Interest
Total
Cost
$
$
Interest
Unpaid
Balance Interest as of
Total Remaining 12/20/2022
$ - $
$ 174,213,920 $ 26,319,260 $ 200,533,180 $ 159,520,318 $ 77,239,200 $ 236,759,518 $ 11,208,581 $ 2,342,419 $ 13,551,000 $ 3,485,021 $ 545,182
Original
Actual Computed
Cost Interest Total
$ 131,568,630 $ 20,298,826 $ 151,867,456
11,801, 216 1,178,724 12,979, 940
17,830,833 2,247,671 20,078,504
8,448,566 1,704,621 10,153,187
2,360,924 694,156 3,055,080
2,203,751 195,262 2,399,013
PREVIOUSLY REIMBURSED
CURRENT REIMBURSEMENT
Cost Interest Total
$ 131,568,630 $ 64,678,552 $ 196,247,182 $
11,801,216 5,016,221 16,817,437
5,997,980 2,529,803 8,527,783
7,927,905 4,033,712 11,961,617
2,224,587 980,912 3,205,499
Cost Interest Total
8,347,832
520,661
136,337
2,203,751
Balance
Remaining
Unpaid
Interest as of
12/20/2022
1,740,512
102,043
36,167
463,697
10,088,344 3,485,021 545,182
622,704 - -
172,504 - -
2,667,448 - -
$ 174,213,920 $ 26,319,260 $ 200,533,180 $ 159,520,318 $ 77,239,200 $ 236,759,518 $ 11,208,581 $ 2,342,419 $ 13,551,000 $ 3,485,021 $ 545,182
* Actual costs exceeded the amount of the LFA. Per the governing agreements, reimbursement is limited to the amount of the LFA.
** Project not yet submitted to auditor for preparation of agreed -upon procedures report on behalf of the TIRZ. Actual costs and interest to be determined.
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