Client:
- Centurion American Development Group
Location:
- Celina, TX
Since 1990 Centurion American (under the leadership of Mehrdad Moayedi) has developer over 100,000 single-family lots in dozens of communities surrounding North Texas. Centurion has worked with investors, landowners, financial institutions, and vendors to acquire over 50,000 acres of land inventory for a diverse mix of developments in size and scope. Centurion’s communities include amenities such as parks, golf courses, water park themes, and hiking and biking trails.
About the Community
As development continues to expand northward from the Dallas–Fort Worth Metroplex, Celina has emerged as a key area for high-quality residential growth. At the center of this expansion is Legacy Hills, a 3,210-acre mixed-use master-planned community location within the North Parkways Municipal Management District (MMD) and within the City of Celina Texas, designed to accommodate a wide range of housing and commercial opportunities, all anchored by thoughtfully planned infrastructure and recreational amenities.
Of the total acreage with Legacy Hills, approximately 2,193 acres are developable, with plans for approximately 6,870 single-family homes, 4,100 multifamily residential units, and 100 acres of commercial development. The community is also expected to include (1) a future championship golf course with a clubhouse (2), open space, (3) and trail systems. In addition, approximately 27 acres are expected to be dedicated to the City of Celina for the development of a public sports park.
Innovative Public Finance
Legacy Hills represents one of the most innovative and complex public finance structures in Texas to date. The development is governed by the MMD with tax and assessment authority which allows for expanded creative financing structures. The major improvements were financed using an assessment that was levied across all single-family lots in the project while the tax is used to finance the internal pod improvements. The use of the tax also allows for utilization for the Texas Infrastructure Program (TIP) as a mechanism of forward-funding the net proceeds to reimburse for internal improvements.
In addition to the MMD financing, a city-created Public Improvement District (PID) was layered on the Magnolia and Lilybrooke portions of the project to fund internal improvements. Legacy Hills also incorporates a Tax Increment Reinvestment Zone (TIRZ) structured to reimburse the developer for the costs expended on TIRZ projects, and/or provide an economic development grant, as applicable.
2021 – Public Improvement District 1A-1B – $13,300,000
2021 – Major Improvements Series 2021 – $81,175,000
2021 – Legacy Hills Capital Recovery Fee Bonds – $11,375,000
2022 – Legacy Hills Major Improvements Series 2022 – $32,225,000
2024 – Legacy Hills TIP Bonds Series 2024 – $46,145,000
2025 – Legacy Hills TIP Bonds Series 2025 – $85,110,000
First Additional Major Improvement Bond in Texas
In 2021, North Parkway issued its first major infrastructure bond, totaling approximately $81 million. As home values rose significantly and actual infrastructure costs exceeded original estimates, our team led the effort to structure and deliver the first-ever additional Major Improvement Bond of approximately $32 million in 2022. This bond issuance not only addressed rising costs but also captured the increased bonding capacity driven by strong market performance and escalating land values, demonstrating a responsive, scalable financial model for large-scale master-planned communities.
Flexible Pod Structure with Strategic Ownership
Centurion American, the master developer, sold many development tracts within the MMD to pod developers, each of whom completed internal infrastructure on their respective pods under the umbrella of the existing MMD levy. PID bonds for Legacy Hills Phase 1A and Phase 1B of approximately $13 million were issued in coordination with the MMD bonds, ensuring cohesive infrastructure delivery across ownership types.
Additional Revenue Support Through Capital Recovery
To complement the overall financing structure, our team also implemented Capital Recovery Fees (CRFs) across the community. These CRFs were monetized through a Capital Recovery Fee bond issuance, helping to fund additional infrastructure needs while maintaining fee predictability for end users.
A Texas First
First Additional Major Improvement Bond in Texas
In 2021, North Parkway issued its first major infrastructure bond, totaling approximately $81 million. As home values rose significantly and actual infrastructure costs exceeded original estimates, our team led the effort to structure and deliver the first-ever additional Major Improvement Bond of approximately $32 million in 2022. This bond issuance not only addressed rising costs but also captured the increased bonding capacity driven by strong market performance and escalating land values, demonstrating a responsive, scalable financial model for large-scale master-planned communities.
Solution Details
Flexible Pod Structure with Strategic Ownership
Centurion American, the master developer, sold many development tracts within the MMD to pod developers, each of whom completed internal infrastructure on their respective pods under the umbrella of the existing MMD levy. PID bonds for Legacy Hills Phase 1A and Phase 1B of approximately $13 million were issued in coordination with the MMD bonds, ensuring cohesive infrastructure delivery across ownership types.
Additional Revenue
Additional Revenue Support Through Capital Recovery
To complement the overall financing structure, our team also implemented Capital Recovery Fees (CRFs) across the community. These CRFs were monetized through a Capital Recovery Fee bond issuance, helping to fund additional infrastructure needs while maintaining fee predictability for end users.
A Special Thanks
We want to thank council and staff at the City of Celina for their support. Their collaborative spirit continues to shape a community that welcomes new opportunities and allows for development that enhances the quality of life for everyone who calls Celina home.
