Bastrop council approves development, utility and CCN transfers for 289-acre Ironwood site

The Bastrop City Council unanimously approved three related items April 8 to allow development infrastructure and utility responsibilities for a 289.4‑acre mixed‑use project west of State Highway 304 and north of Lower Red Rock Road, a parcel staff has called the Ironwood development.

City staff said the developer will create a municipal utility district (MUD) to finance and build water, wastewater, drainage and road infrastructure, then turn those facilities over to the city or partner agencies under the terms of the development and utility agreements. “The developer will install all infrastructure, and then they will turn that over to the city,” City Manager (staff presenter) said during the presentation.

The development agreement (Resolution R2025‑69) and the companion utility agreement (Resolution R2025‑70) were approved with an added condition that the project meet the city’s current impervious‑cover rules. Council also approved a separate resolution (R2025‑68) authorizing the transfer of the wastewater certificate of convenience and necessity (CCN) for the site from the current provider into the city’s service area.

Why it matters: the project would be served initially by a MUD—meaning the MUD issues debt to pay for infrastructure and collects rates and assessments until that debt is repaid. Staff told council the MUD structure means much of the acreage will be outside the city limits (in the city’s one‑mile/extraterritorial jurisdiction and voluntary ETJ), and the city will not immediately collect city property taxes on the MUD portion. Once MUD debt is retired, staff said the city’s share of assessed value returns to the city.

Key provisions and fiscal details - Size and program: staff described roughly 289.4 acres of mixed uses including 134 acres of single‑family, about 44 acres for commercial (P‑5 core), roughly 16 acres of mixed use and 74.5 acres of parks/open space (including detention, water quality basins, greenbelts and trail corridors). - Parks and public safety: the development agreement guarantees a minimum of 50 acres reserved for public parks (staff emphasized the agreement includes a 50‑acre minimum for public use) and a 1.5‑acre public safety site dedicated for a possible police substation or shared facility. - Utilities and operations: water service will remain with Aqua for the short term; wastewater service will be connected to the city’s wastewater plant by a direct line. City staff said streets installed during construction will be rebuilt by the developer when the subdivision reaches roughly 80% build‑out to address construction damage. - Fiscal splits: staff described that about 26% of assessed value at buildout is estimated to be the city portion (the remainder supports MUD debt), and noted the city’s tax rate at the time of presentation was 0.4994. Staff said the city portion equates to roughly $597,000 to the city at full buildout under the current assumptions; they also said that portion would revert fully to the city after MUD debt retirement. - Impact fees and reservation fee: staff reported an estimated 1,300 LUEs (living unit equivalents) and presented impact‑fee calculations for wastewater and water. The agreement includes LUE reservation language; Council adopted an impact/reservation approach discussed during the meeting and staff said the development reserved $50 per unit as an LUE reservation fee in the draft materials presented to council.

Council discussion and conditions Council members concentrated on impervious‑cover limits and public‑park guarantees. Councilmember Foster flagged impervious‑cover limits in the draft agreement and asked the developer and staff to confirm the project would meet the city’s current impervious‑cover standards; council then approved the motion to adopt the agreement subject to meeting those current standards. Foster asked for a short recess to let staff and the developer verify the numbers, then returned to complete the vote.

Developer remarks and timeline Developer representative Steve Dermen described elements of the Burleson Crossing/Wagon Wheel work he is delivering under separate agreements and said the developer will construct the utilities and roads, with specific timelines and TxDOT coordination required for some roadwork. Dermen said some costs are subject to unknown conditions once excavation begins—utility sleeves, older infrastructure and other latent conditions can add unforeseen expense—and council required that any change orders or cost overruns come back to council for approval.

What council approved - R2025‑69 (development agreement): approved unanimously with the impervious‑cover condition. - R2025‑70 (utility agreement): approved unanimously. - R2025‑68 (CCN transfer for wastewater service): approved unanimously.

Next steps and limits Staff and the developer described the MUD creation, subsequent public notices and hearings required before annexation. Staff emphasized the MUD will be outside city limits initially and that annexation would occur only after further review and, if appropriate, after a period when the MUD debt status is revisited. Council’s approvals authorize staff to proceed under the terms presented, with formal annexation and other actions to follow the required public‑notice and hearing processes.