Kerrville council approves subdivision code changes, OKs several rezones and authorizes development deal; council votes to settle Wellpath claim

The Kerrville City Council on April 8 approved a set of land‑use and procedural changes intended to speed development reviews, granted several zoning changes requested by private applicants, and authorized the city manager to negotiate a development agreement tied to a proposed retail tenant at River Hills Mall. The council also voted to accept a debtor’s offer to resolve the city’s outstanding claim against Wellpath Holding Inc.

Council members and staff said the subdivision-code amendments remove outdated steps, align the code with recent state law changes, and tighten financial guarantees tied to deferred infrastructure. “This is an update to chapter 82, the subdivision ordinance,” Mr. Paxton told the council during his presentation, summarizing the measure as technical cleanup and alignment with Kerrville 2050 goals.

Why it matters: The changes aim to reduce duplicative review steps that staff and developers said slowed projects. The council’s actions include specific shifts that could affect how new subdivisions are reviewed, what infrastructure may be deferred, and how the city secures funds when work is delayed or not completed.

What the council changed

- Subdivision-code amendments (Ordinance No. 2025‑07): Staff removed an alternate plat‑review procedure, clarified that adequate facilities plans and preliminary plats may be submitted concurrently, and added a water/wastewater capacity analysis to application requirements in some cases. The council also recommended increasing the escrow financial guarantee for deferred work from 10% to 25% of project cost so the city would have additional funds if it must complete work by contract. Mr. Paxton said the 25% level is common among nearby cities and would cover higher bid costs and timing delays.

- Reuse‑water suggestion in public comment: A member of the public urged the council to require “purple pipe” for new subdivisions so future reclaimed water could be used for irrigation. The commenter said installing reuse mains when subdivisions are built is less costly than retrofitting later; Mr. Paxton and other staff described the city’s current reuse contracts and cautioned that existing reuse supplies are largely committed under long‑term contracts.

Zoning and development items

- 620 Webster Ave (Ordinance No. 2025‑08): The council approved rezoning a property at 620 Webster from single‑family with accessory dwelling (R1A) to neighborhood commercial (C1). Applicant B.K. Gamble described the proposal as a small community convenience store or bodega “for the community, you know, walking distance” and said she will seek a separate variance for a curb cut and parking. Council members noted pedestrian safety near nearby play areas and urged the applicant to address sight lines and parking in the site plan.

- Travis Street replat and rezoning (Ordinance No. 2025‑09): The council approved changing roughly 0.94 acres near Travis Street from R1 to medium‑density residential (R2) to allow smaller setbacks and greater flexibility for builders on very small lots. Applicant Bruce Drake (representing the replat) said the project would yield about 10–12 homes on lots 40–50 feet wide and that stormwater design had been reviewed by city staff and outside consultants.

- Planned development district amendment (Ordinance No. 2025‑10): The city, acting as applicant, approved clarifying edits to an existing 264.22‑acre planned development ordinance to remove draft language and reconcile descriptive text with the land‑use table. Staff said the changes do not alter permitted uses or district boundaries but remove conflicting secondary descriptions added when zoning codes were being rewritten.

Other business and executive‑session outcomes

- Electioneering ordinance repeal (Ordinance No. 2025‑11): The council voted to delete the city’s Article 3 electioneering provisions from Chapter 70 of the city code. The change drew public comment: Nikki Caine said she was concerned about timing and whether repeal related to an ongoing lawsuit; Monica Cannon, a local precinct chair, praised the repeal as protecting freedoms and urged the council to move on. City staff said the repeal is intended to allow staff time to identify a future polling location and to consider election‑specific rules appropriate to that site.

- Project Keystone / River Hills Mall (executive session item 8a): After an executive session the council authorized the city manager to negotiate a development agreement with Alpha Lake LTD (doing business as River Hills Mall) to secure an anchor tenant described in meeting materials as the Academy of Sports and Outdoors. The motion to authorize negotiations passed unanimously.

- Wellpath settlement (executive session item 8e): The council approved city‑attorney authority to accept a debtor’s offer from Wellpath Holding Inc. and settle the city’s outstanding claim against the company. That motion also passed unanimously.

Votes at a glance

- Ordinance 2025‑07 (subdivision code update): Passed unanimously. - Ordinance 2025‑08 (620 Webster Ave, R1A→C1): Passed (vote reported as 4–1). The council discussed parking and pedestrian safety; the applicant said she will pursue a variance for curb cut/parking. - Ordinance 2025‑09 (Travis Street replat, R1→R2): Passed unanimously. - Ordinance 2025‑10 (PD concept plan cleanup, first reading): Passed unanimously on first reading. - Ordinance 2025‑11 (delete electioneering article): Passed unanimously on first reading. - Executive session item 8a (authorize negotiation: Alpha Lake LTD / Academy of Sports and Outdoors): Authorized; passed unanimously. - Executive session item 8e (accept Wellpath debtor’s offer/settlement): Authorized; passed unanimously.

What council members and speakers said

Mr. Paxton (city planning/development staff) described the subdivision changes as “clarification and cleanup” and said legislative changes required several code updates. A public speaker urged the city to “require developers to install purple pipes” so reclaimed water infrastructure will be available when reuse supplies and markets expand. Applicant B.K. Gamble said her proposed Webster Ave store will be “a community store...a smaller version,” and asked the council to consider safety and parking in the approval process. Developer Bruce Drake described the Travis Street replat, the 10–12 proposed lots, concrete private drive and stormwater work that staff reviewed. Nikki Caine raised concerns about the electioneering repeal’s timing and possible ties to pending litigation; Monica Cannon welcomed the repeal.

Implementation and next steps

- Staff will update ordinance language and administrative procedures to reflect the approved subdivision‑code changes, and the city will continue to use its established review steps for preliminary and final plats. - The 620 Webster rezoning approval does not include curb‑cut or parking variances; those will be pursued separately by the applicant. - The city manager was authorized to negotiate a development agreement for Project Keystone; the council will consider any final agreement at a future meeting. - The Wellpath settlement requires administrative follow‑through by the city attorney’s office.

The council convened at 6:00 p.m. and returned from executive session after roughly two hours. No further formal actions were taken in open session.