February 13, 2024 Hood County Commissioners' Court

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The Hood County Commissioners' Court met on February 13, 2024, to address a substantial docket spanning infrastructure planning, emergency services financing, regulatory policy, and community concerns. Major action items included tabling the Old Granberry Road traffic management project pending finalization of a county-city interlocal agreement, approving a $7.6 million tax note for fire and EMS apparatus purchases, and tabling proposed county tax abatement guidelines following public input. The court also heard extended public comment regarding noise complaints from the Marathon Digital cryptocurrency mining facility at Wolf Hollow, with the judge clarifying that Texas counties lack statutory authority to regulate noise in unincorporated areas. Additional routine approvals included PILOT waivers, event authorizations, personnel actions, and development infrastructure plans.

• Call to order and openingThe meeting was called to order with invocation and pledges.
• Public participation procedures and docket overviewCounty leadership clarified requirements for public comment forms and noted a large docket.
• Item 18 discussion—Old Granberry Road project overviewCommissioners agreed to address item 18 first (the last agenda item) regarding TMP's scope and fee revision for Old Granberry Road project.
• Project context: 377 construction and traffic diversionJudge explained the urgency tied to upcoming US 377 construction that will reduce lanes and force traffic diversion.
• TMP preliminary traffic analysis backgroundRyan Jones (TMP) reviewed preliminary work completed by the city and identified critical needs.
• Preliminary findings and recommendationsTraffic study results indicated improvements are definitely needed to Old Granberry Road.
• Three contract options presentedRyan Jones outlined three structural approaches for moving forward with engineering services.
• Project phases and $50 million construction cost estimateEngineering process typically involves planning, programming funds, and implementation phases.
• County–city contractual relationship clarificationJudge and Ryan Jones clarified that the existing TMP proposal was with city only and would require new interlocal agreement for county participation.
• Commissioner priority and project scope clarificationCommissioner emphasized urgency, noting constituents want action; discussion clarified geographic limits of current planning.
• Financing mechanisms and phasing discussionJudge noted multiple financing vehicles available and emphasized that projects can be phased.
• Discussion of phasing and developer participationCommissioners and engineer discussed cost-sharing with developers and right-of-way dedication.
• 377 construction impact timing questionJudge pressed on when traffic analysis would account for actual 377 construction impacts.
• TxDOT Highway 377 construction impact and funding analysisEngineering analysis addressed potential traffic impacts from Highway 377 construction but lacks specific project timing and funding commitments from TxDOT.
• Planning-level contract structure and phasing approachProject team proposed a phased contract approach with upfront planning study and contingency for later design phases to manage costs and align with funding availability.
• Granberry city partnership and cost-sharing proposalCity of Granberry proposed 60/40 cost split with county based on prior intergovernmental meeting agreement, with city managing project administration and TMP contract.
• Growth trajectory and low tax rate attracting developmentCounty and city leadership emphasized rapid residential and commercial growth driven by competitive property tax rates and multiple development corridors.
• Interlocal agreement and contract administration structureCounty and city coordinated drafting of interlocal agreement to formalize partnership structure, with flexibility on which entity manages TMP contract administration.
• Motion to table for interlocal agreement clarificationCommissioner Eagle moved to table action to next meeting to resolve contract structure, funding scenarios, and interlocal agreement language with both county and city.
• Granbury Housing Authority payment in lieu of taxes waiverAnnual routine waiver of Payment in Lieu of Taxes (PILOT) for Granbury Housing Authority approved without discussion.
• Gazebo use for annual Bible reading MarathonAuthorization granted for use of county gazebo for week-long Bible reading Marathon event from April 26–May 1, 2024.
• Lunch in Black eclipse event at historical CourthouseCity of Granbury event approved for 2024 total eclipse celebration with ticketed attendance limit and parking provisions.
• Dispatch overtime budget supplementation from Emergency Management fundsCounty authorized use of $5,183.93 direct deposit from Emergency Management Assistance Compact (EMAC) plus reallocation of salary savings to increase dispatch overtime budget to $40,000 annually.
• Fire and EMS apparatus purchase plan restructuringJeff Young presented revisions to the fire and EMS vehicle purchase strategy based on legal requirements regarding tax note financing and collateral arrangements.
• Legal authority and tax-exempt bond requirementsBond Council Rudy Sakuro of McCall Parker addressed the legal framework for financing emergency equipment through tax-exempt borrowing and the unique structure required for volunteer fire department funding.
• TEER hearing requirement and proceduresThe court conducted a required TEER (Tax and Equity Fiscal Responsibility) hearing by teleconference for the volunteer fire department and Texas EMS lending arrangements.
• Public comments on equipment ownership and liabilityMark Lowry and Commissioner Andrews offered remarks during the TEER hearing regarding liability insurance, long-term management of fire services, and county fiscal concerns.
• County equipment ownership and insurance frameworkJudge Massingill clarified that the county currently maintains equipment in each fire department under existing ownership and insurance arrangements.
• Resolution approval for fire apparatus financingThe court adopted a resolution approving the financing structure required by TEER and the Internal Revenue Code for fire truck and ambulance purchases.
• Public questions on tax rate impact and debtCitizen Tina Brown sought clarification on whether the tax note resolution would increase the tax rate, raising concerns about mounting county debt.
• Tax note bidding results and financial advisor summaryJim Sabonis presented the competitive bidding results for the $7.6 million tax note issue, showing strong market response and favorable terms from eight bidders.
• Debt structure and three-year note termJudge Massingill and Financial Advisor Sabonis discussed the tax note structure, confirming it is not a bond and the county's current debt-free status except for the Crescent Bypass.
• Motion to adopt tax note issuance orderThe court adopted an order authorizing the issuance and sale of Hood County Texas Tax Note Series 2024 with a maximum principal amount of $7,600,000.
• Marathon Digital cryptocurrency data center discussion itemCommissioner Gail Agee placed on the agenda a discussion of Marathon Digital's cryptocurrency mining data center at Wolf Hollow, including noise mitigation and compliance with 2021 conditional approval requirements.
• November 2021 site plan approval conditionsCommissioner Agee reviewed the November 9, 2021 court discussion regarding conditional approval of the Wolf Hollow data center site plan, highlighting concerns about tax abatement carve-out and emergency power protocols.
• Conditional approval motion and follow-up requirementsCommissioner Cotton moved conditional approval of the Wolf Hollow phase zero data center site plan, with the operator excluded from the Wolf Hollow tax abatement and subject to county attorney review of abatement rights.
• Wolf Hollow Bitcoin Data Center Noise Complaint HistoryCommissioner Annette Samson provided a chronological overview of noise complaints and mitigation efforts regarding the Bitcoin mining facility at Wolf Hollow.
• Public Comment: Bruce Chase on Noise and Property ValuesResident Bruce Chase, a fourth-generation property owner, reported hearing noise over 80 decibels inside his house one mile from the plant and expressed concern about declining property values.
• Public Comment: Marcia Kurts on Frequency Effects and Mitigation RequestsResident Marcia Kurts, living 3.3 miles away as the crow flies, reported that the low-frequency noise causes ears to ring after 20–30 minutes and made suggestions for interim and permanent noise solutions.
• Public Comment: Robert Killian on Noise Comparison and Enclosure SolutionsRetired General Motors worker Robert Killian compared the Bitcoin facility noise to industrial noise and advocated for enclosure as the only viable solution.
• Public Comment: Ron Roberts on Noise Escalation and Enforcement GapsResident Ron Roberts, living 2.5 to 3 miles from the Marathon data center, reported that noise worsened despite a promised fix and questioned why fines do not meaningfully deter the operation.
• Public Comment: John Heath on Health Effects and Legal RemediesResident John Heath discussed low-frequency sound health impacts, cited industry literature on noise control solutions, and asked the county attorney to consider declaring a public health emergency.
• Public Comment: Monica Brown Speaking for Dr. Shannon WolfMonica Brown read a statement from Dr. Shannon Wolf, a psychology doctorate holder and seminary director, characterizing the noise as a humanitarian crisis and health assault on residents.
• Public Comment: Monica Brown on Community Concerns and Fiscal SolutionsResident Monica Brown advocated for innovative, community-based problem-solving rather than reliance on debt and taxes, and criticized the court for inaction on previous community concerns.
• Public Comment: Wes Ramirez on State-Level Advocacy and Inadequate FinesResident Wes Ramirez, living a half mile from the data center, requested the county's assistance in reaching state-level officials and questioned the logic of allowing violations for $500 daily fines.
• Public Comment: Cheryl Shadon on Cumulative Health and Environmental ImpactsResident Cheryl Shadon, living near Wolf Hollow, provided a detailed account of community health effects, property impacts, and the lack of environmental impact studies prior to the facility's operation.
• County Judge on State Law Limitations and Local AuthorityCounty Judge explained that Texas counties lack statutory authority to regulate noise in unincorporated areas, distinguishing this from cities' noise ordinance powers.
• Question on City Annexation as AlternativeA resident asked whether a city close enough could incorporate the property quicker than the legislature might pass a law; the judge and city representative explained voluntary petition requirements and the 2019 prohibition on involuntary annexation.
• County Judge on Legislative EngagementThe judge reported having engaged with state representative Shelby Slawson regarding potential noise authority legislation for counties.
• Discussion on Public Health Emergency DeclarationA resident asked whether the noise situation could be considered a public health emergency, which the judge indicated would require expert testimony and legal precedent beyond the county's current scope.
• Bitcoin mining noise complaint discussionCommissioners expressed sympathy for residents affected by Bitcoin mining noise but stated county lacks legal authority to intervene without legislative action.
• Bitcoin operation tax abatement clarificationCounty official clarified that the Bitcoin operation itself pays full property taxes while Wolf Hollow power plant holds a separate tax abatement unrelated to the mining facility.
• Amended election judge appointments approvalThe court approved amended election judge appointments for the remainder of the 2023–2024 term without discussion.
• Steve Barry reappointment to Centex rural transportation districtThe court unanimously reappointed Steve Barry to serve a seventh term on the Centex rural transportation district board for two years.
• Jailer promotion to Corporal with salary increaseThe court approved promoting a Jailer to Corporal step one with a salary increase from $46,000 to $50,000 effective February 12, 2024.
• Public hearing on Hood County tax abatement policy and Granberry Commerce CenterThe court convened a public hearing to discuss and adopt tax abatement guidelines for a proposed 39,000 square foot spec building in the Granberry Commerce Center seeking 50% abatement for up to seven years.
• Speaker Robert critiques NAICS codes and calls for higher standardsA speaker urged the court to conduct more research on industry selection and require environmental impact studies before approving abatements.
• Speaker Ron Roberts proposes application and compliance specificsA speaker recommended more detailed compliance terms and annual reporting requirements for tax abatement agreements.
• Speaker Cindy heith opposes reinstatement citing 2023 tabling and county growthA resident opposed adoption of tax abatement guidelines, citing a prior 2023 vote to table them and arguing that Hood County's natural growth makes abatements unnecessary.
• Speaker John heith argues county lacks need for abatementsA resident questioned the philosophical and economic rationale for offering tax abatements when the county experiences strong natural growth.
• Speaker Greg Harrold cites Republican platform and identifies policy flawsA speaker invoked Republican Party platform principles opposing government subsidies and detailed multiple legal and procedural defects in the proposed tax abatement policy.
• Tabling of Hood County tax abatement policy guidelinesItem 14 regarding tax abatement policy guidelines was tabled by motion for further review.
• County jail equipment purchasesThe court approved purchase agreements for two commercial closed dryers and a sink disposal for the county jail from fund 55, not to exceed $20,000.
• Consent agenda approvalThe consent agenda was approved unanimously after brief discussion regarding line item transfers extending to end of March.
• Development replat public hearings scheduledPublic hearings were scheduled for March 26, 2024 for two replat applications: Blue Branch Road lot 59R and The Landings lot 329R.
• Bandit Barrel RV infrastructure development plan approvalThe court approved an infrastructure development plan for Bandit Barrel RV park proposing 10 RV spots at 8232 pxy Highway in Toller on a 6.5 acre tract.
• Subdivision regulations revision for shared driveway special exceptionThe court approved revisions to section 2 subdivision regulations section 1.6 to add a special exception allowing driveway access for subdivisions over 10 acres while protecting county road maintenance obligations.
• Invoice payment authorizationThe court approved payment of invoices totaling $1,452.69 for the period January 17 through February 6.