Council approves $600,000 BEDC loan and 380 grant for Burleson Crossing East; council requires change orders return for approval

The Bastrop City Council unanimously approved April 8 an interlocal cooperative loan of $600,000 from the Bastrop Economic Development Corporation to the city to support infrastructure improvements for Burleson Crossing East and separately approved a Chapter 380 agreement that authorizes an up‑to $600,000 payment to the developer for frontage improvements along Highway 71.

The BEDC loan and the city’s payment to the developer are separate but related pieces of a funding package intended to finance road widening, left‑turn lanes, and related public improvements tied to the retail component at Highway 71 and Ed Burleson Road. City staff described the package as a 60/40 split between the city and BEDC for the public infrastructure, with the BEDC’s board to consider its $400,000 portion at their next meeting.

The package and developer agreement City staff said Phase 1 of the project includes roadwork on Wagon Wheel and Ed Burleson, with estimated job creation of 300 positions and an estimated taxable value in the tens of millions; staff projected ad valorem tax increases and sales‑tax growth that will be used to repay the BEDC loan and the 380 arrangement over time. The 380 payment is a grant‑style arrangement: the city will capture a portion of future sales and property tax growth in the project area to reimburse itself and the BEDC for the construction funding.

Developer presentation and council concern over contingencies Developer Steve Dermen presented project scope and bid status, saying hard costs were approximately $800,000 with contingency included and that he expected to remain under the $1 million ceiling in the agreement. Dermen warned the council that latent conditions in the existing roadbed—old storm infrastructure or utility sleeves and gas lines—could trigger unanticipated costs once excavation begins.

Council responded by asking the attorney and staff to tighten the contract language and to require any change orders above the agreed ceiling to come back to council for approval. Councilmember Foster moved, and councilmember Lee seconded, a motion to approve the Chapter 380 agreement with the explicit condition that all change orders come to the council; that motion passed unanimously.

Why it matters The package accelerates planned frontage and road improvements that staff said will enable development and generate sales and property taxes. Council directed that a finding complying with Texas constitutional limits and adequacy of consideration will be required if change orders would obligate the city for additional public funds; staff and counsel said they will prepare contract language and a path to return to council for approval of any cost increases.

Standard financing and next steps Staff described the BEDC loan repayment as anticipated to pay back within seven years under projected revenues from development. The BEDC board will vote on its portion at its next meeting; staff will return to council with finalized contract language addressing change‑order approvals and any constitutional findings required for additional city expenditures.