Title
Consideration of and action on authorization to use the remaining Series 2021 and Series 2022 Certificates of Obligation proceeds and interest earnings for the design, construction, improvement, and equipment associated with renovations to the Theatre building.
Body
Summary:
On May 1, 2021 the voters in the City of Deer Park approved a proposition continuing the levy and collection of the Type B sales and use tax within the City at the rate of one half of one percent for the promotion and development of the additional purpose of land, buildings, equipment, facilities, and improvements (including the maintenance and operating costs thereof) found by the board of directors of the deer park community development corporation to be required or suitable for use for the following: amateur sports, children’s sports, athletic, entertainment and public park purposes and events, including ball parks, parks and park facilities, and open space improvements (including (i) a community/recreation center complex with indoor pool, gymnasium, and indoor track and (ii) an outdoor pool and/or pool related facilities); related concession and automobile parking facilities; related roads, streets, and water and sewer facilities; and other related improvements that enhance any of the above.
On June 1, 2021 the City Council of the City of Deer Park authorized Resolution 2021-04 Notice of Intent to issue Series 2021 Certificates of Obligation for the following purposes: all or any part of the costs associated with the (i) the design, construction, improvement and equipment of parks and recreational facilities, including: (a) a community and recreation center and (b) youth recreational sports complex improvements, including parking and lighting for such facilities, and (ii) the costs of professional services related thereto.
On August 2, 2022 the City Council of the City of Deer Park authorized Resolution 2022-05 Notice of Intent to issue Series 2022 Certificates of Obligation for the following purposes: for all or any part of the costs associated with the (i) the design, construction, improvement and equipment of parks and recreational facilities, including a community and recreation center and associated pool house, and (ii) the costs of professional services related thereto.
The community and recreation center, referred to as the DAC, was completed and opened to the public on August 2, 2025. City Council accepted completion and release of retainage funds for the DAC to the Construction-Manager-At-Risk, Durotech, on January 6, 2026. This project has formally been closed out in all respects.
The series 2021 and 2022 debt issuances upon completion of the DAC have remaining proceeds and interest earnings available to spend that must be used for a project that fits within the authorized use of proceeds or for another like project. The Capital Improvements Plan adopted by City Council has slated renovations to the Theatre building as a project to begin in FY 2026 with construction carrying through FY 2027. After consulting with our Bond Counsel, Bracewell LLP, staff recommends using the remaining series 2021 and 2022 certificates of obligation proceeds and interest earnings to fund this project as it fits within an authorized project under the DPCDC’s continuation purpose and use of proceeds for the debt issuances as outlined above.
The Parks and Recreation Department has been working with Architect Studio Red to design the renovations. The feasibility study estimated the project to cost approximately $1,748,700.00. Studio Red is currently working on preparing design and construction documents that will provide a better estimate of costs and renderings of the proposed renovations.
Fiscal/Budgetary Impact:
Renovations to be funded by remaining 2021 and 2022 Certificates of Obligation proceeds and interest earnings.
Recommended action
Authorize the use of the remaining Series 2021 and 2022 Certificates of Obligation proceeds and interest earnings to be used for renovations to the Theatre Building.