Kerrville council sets public hearing on Whiskey Springs PID amid water-capacity questions

Kerrville — The Kerrville City Council voted unanimously May 13 to set a public hearing on a petition by Whiskey Springs to create a public improvement district to finance infrastructure for a proposed mixed‑use development at the intersection of I‑10 and Highway 16.

City staff described the action as the first procedural step toward a PID; formal creation would require additional statutory notices, boundary definitions and hearings. The resolution approved on the council dais directs staff to schedule that public hearing and continue negotiations on a development agreement with the applicant.

The petition covers a plan that staff said calls for a luxury hotel, a tournament‑level golf course, about 357 single‑family lots, seven commercial lots and multifamily buildings. City staff said the property’s current appraised value is about $7,000,000, with an estimated land‑only appraised value of about $238,000,000 and a developer estimate of roughly $1.13 billion at full buildout by 2036.

The Nut Graf: The PID would allow the developer to finance public infrastructure through assessments on properties inside the district rather than city debt; council members and staff focused discussion on water supply and how irrigation for the golf course would be supplied without drawing on potable drinking water. The council’s vote authorizes the public‑notice and hearing process required under state law, not final approval of the PID or development agreement.

City staff member Michael Hornace presented the petition and the timeline, telling the council that, under Texas statute, a public improvement district is repaid by assessments on the properties in the district and not by the city. “So not to the citizens of Kerrville, but through the property owners that are within the boundaries of that area,” Hornace said. The development team and staff have discussed options to increase reuse‑water storage and other measures so the golf course and landscaping will not rely on potable water.

Developer Jim Boyden, who identified himself as representing Whiskey Springs, described his experience working on large master‑planned developments in the Desert Southwest and said his firm aims to limit irrigation and reduce indoor and outdoor water use per home. “In our developments, we’ve tried to get that number down to less than a half acre‑foot or even a third of an acre‑foot,” Boyden said, describing reuse and low‑water landscaping practices he has used elsewhere.

Councilmembers pressed staff and the applicant on water capacity and drought planning. Staff said the developer has been asked to demonstrate how it would cover 90 days of drought demand for irrigation without tapping potable supply reserved for drinking water. Councilmember Harris said he had toured the site and praised the developer’s water strategy as “remarkable” after staff and the developer described reuse and runoff recapture plans.

Councilmembers also noted the project had long‑standing entitlements (a planned development district approved in the early 2000s) and described the current petition as one potential path to move the property toward development. Councilmember Brenda Hughes said she appreciated the developer’s public outreach and asked for a commitment to remain transparent as construction proceeds.

The council passed the resolution to call the public hearing unanimously. The action advances the statutory process; future steps will include the public hearing, verification of the petition, boundary definitions and separate council action on any development agreement or creation of the PID.

Ending: The public hearing date and the draft development agreement were not finalized at the May 13 meeting; staff said both items are scheduled to return to council concurrent with the PID hearing in coming months so the council can consider the PID formation and a related development agreement together.