City approves unique opt-out for controversial development agreement

In a recent government meeting, officials discussed a significant three-part request from developers associated with the Waterstone development, located north of Harrington Road between I-35 and State Highway 21. The meeting highlighted the unique circumstances surrounding the development's municipal utility district (MUD) and development agreements, originally established in 2014 and amended in 2017.

The developers sought to acknowledge that several property owners had opted out of the development agreement, effectively nullifying its regulatory authority over their properties. This opt-out provision, noted as unusual in development agreements, allowed property owners to withdraw from obligations by submitting a letter to the city. As of 2023, all remaining property owners had opted out, leaving the development agreement without effect.

The city also discussed the termination of the MUD consent agreement, emphasizing that the area is not within the city's service area and that future annexation is highly unlikely due to recent laws and the financial implications of assuming the MUD's debt. Additionally, the meeting addressed the release of the area from the city's extraterritorial jurisdiction (ETJ), with staff confirming that while no formal actions were being taken on ETJ releases, a letter acknowledging the release had been issued to the applicant.

City staff recommended approval of the requests, citing the unique nature of the development and the lack of anticipated future scenarios similar to this case. The motion passed with a vote of 6-2, with one member absent, marking a significant step in the ongoing development process.