Relating to the creation of La Cima Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.

Contracts

• Purchase and Sale Agreements (PSAs): You must amend PSAs to include the statutory "Notice to Purchaser" required by the Texas Water Code. Failure to provide this notice at or before closing grants the buyer the right to terminate the contract.
• Commercial Leases: Review and amend Triple Net (NNN) lease templates. Ensure the definition of "Operating Expenses" or "Taxes" explicitly includes "special assessments" and "district administration fees." Standard "ad valorem tax" clauses may not cover infrastructure assessments, leaving the landlord liable for these costs.
• Vendor Contracts: Contracts with the District for construction or services are subject to government procurement laws, including Form 1295 disclosures, prevailing wage requirements (Chapter 2258, Government Code), and payment bond requirements (Chapter 2253, Government Code).

Hiring/Training

• Sales & Closing Teams: Train staff on the mandatory disclosure requirements. They must understand that the District is a separate taxing entity from the City of San Marcos and Hays County.
• Accounts Payable: Instruct finance teams to treat District assessments as priority payments. Non-payment results in foreclosure proceedings identical to standard property tax foreclosures.

Reporting & Record-Keeping

• Lien Tracking: Assessments create a first and prior lien superior to commercial mortgages. You must track Board resolutions imposing these assessments to avoid technical default on lending covenants regarding "permitted encumbrances."
• Division Orders: If the District exercises its authority to divide into multiple districts (Sec. 4012.0310), you must record which specific new district holds jurisdiction over your assets, as tax rates and debt obligations may diverge.

Fees & Costs

• Ad Valorem Taxes: A new tax layer will be applied to real property, subject to voter approval and caps set by the Board.
• Infrastructure Assessments: The Board may impose assessments for improvements. These are personal liabilities of the owner (Sec. 4012.0402(b)(3)), not just in rem liens.
• Petition Costs: Financing often requires a petition from owners of a majority of the assessed value. If you sign a petition, you are effectively authorizing a tax on your own holdings.