Feature Illustration: Conceptual rendering of the entrance to the Madeira master planned community. Courtesy: Madeira Properties Ltd.
Posted: 12-17-2021
by Adolfo Pesquera
Brownsville (Cameron County) — The City Commission approved a development agreement this week that commits the city to contributing $90 million in infrastructure for the 1,330-acre Madeira master planned community.
Earlier this year, the city approved the creation of a TIRZ (Tax Increment Reinvestment Zone #4) and that board subsequently negotiated a draft development agreement with the developer, then recommended it to the City Commission. The city contribution would be in the form reimbursements of 50% of future anticipated tax revenues realized by the development.
VBX previously reported on this project in a June 2, 2021 article when the City Commission acted to annex all of the project site into the city.
Terms of the agreement allow a duration of 30 years. The $90 million portion from the city shall be available for project costs included in the project and finance plan. The cost for infrastructure and public facilities is estimated at more then $174 million and total project costs were estimated at $302,389,705.
The developer, Madeira Properties Ltd., would invest $129,476,266. Cameron County as agreed to contribute $57 million from their maintenance and operations tax rate. That leaves $25 million for which an alternate source has yet to be finalized.
The agreement stipulates that, “prior to the recording of the developer’s first subdivision plat covering a portion of the property, the developer shall file a petition with the city for the creation of a public improvement district … (Madeira PID) to finance costs that will not otherwise be covered by the TIRZ Plan.”
The present value of the land, which is a large agricultural tract northeast of the city, is $732,266. When fully developed, the site will add approximately $1 billion in residential and commercial taxable value.
The master plan calls for the construction of 2,900 single family residential units and 240 acres of mixed-use commercial properties. Housing types include single-family detached, garden homes, townhomes, quadplexes, and garden-style apartments. Madeira Properties Ltd. has identified UR Home Texas of Edinburg and BARSE Construction LLC of Brownsville as two of its homebuilders.
The commercial development includes hotels, medical offices, and office business park, flex retail, grocery and convenience stores.
The city retained the services of TXP Economic Development Inc. to determine the accuracy of the developer’s revenue forecasts and found them to be reasonable. TXP concluded that the development will generate $175,485,096 in ad-valorem tax and $109,431,938 in Cameron County property tax over a 30-year term from 2021-2015.
TIRZ #4, alternatively referred to as the Madeira Espiritu Santo TIRZ, would be the conduit for the expenditure of city funds earmarked for public infrastructure and public amenities. Specifically, the funds would be used for major thoroughfare development, drainage and detention, major trunk lines and conveyance for water and sanitary sewer.
Roadway infrastructure will consist of 32-foot-wide residential streets within a 50-foot-wide right-of-way; primary and secondary four-lane divided arterials within a 100 to 120-foot right-of-way. Medians and parkways will be landscaped.
Parks and open spaces are to include 10-foot-wide hike and bike trails with landscaping utilizing the existing tree canopies. They will also serve as drainage corridors and include shallow drainage swales and trunk storm sewer systems.
Institutional development considerations include the dedication of 10 to 15 acres for schools, and TIRZ #4 assistance in financing police fire and EMS facilities.
Estimate of itemized infrastructure costs for the Madeira master planned community.
