Council approves Fallingleaf Ranch PID with conditions tied to Exxon deed and environmental work

Friendswood City Council on April 7 approved a resolution creating the 117.506-acre Fallingleaf Ranch Public Improvement District, a financing and oversight vehicle the city says will help fund public infrastructure for a proposed development southeast of Stonewall Pass Lane.

Councilmembers emphasized that PID bonds will not be issued until a preliminary and final service-and-assessment plan is prepared and approved, and until environmental work — including assessments and any required remediation to meet Exxon’s deed requirements — is completed to Exxon’s satisfaction. Council approved the resolution by a 5-1 vote.

The development parcel, described in staff materials as roughly 117.506 acres, is currently encumbered by a special warranty deed recorded by Exxon that includes restrictions tied to environmental concerns. Aubrey Harbin, Friendswood community development director, told the council that the developer must submit a revised concept plan and revised deed showing compliance with Exxon’s deed conditions before the city will allow PID bonds to be issued.

Christopher Songster, a senior environmental consultant with Laughlin Environmental Services engaged by the developer JMK5, said the property’s primary issue is elevated chlorides in soil — ‘‘salt soils’’ — which, he said, mostly affect vegetation and aesthetics but must be addressed to meet Exxon’s residential-development standards. Songster said additional assessments are under way to craft a remediation plan that must be approved by Exxon before deed restrictions can be amended or lifted.

Developer lender Jet Lending told council its financing is in place. Eddie Gantt of Jet Lending said the firm has funded numerous projects in the Houston area and is ‘‘standing by our client.’’

Residents at the public hearing pushed the council for more oversight and clarity on costs and contractor practices. Michael Ross and Randy Hale both voiced concerns about earlier PID/TIRZ projects in the city, unpaid contractor liens on related sites and whether the public — or future homeowners — will ultimately bear risks if projects are poorly bid or costs escalate.

City staff and the mayor responded that the development agreement requires the developer to advance any funds necessary if final construction costs exceed the amounts financed by PID bonds. Staff also said that the city will review engineers’ estimates of probable costs and that the city engineer will review invoices and on-site progress before any draw on bond proceeds.

Harbin said the PID assessment calculations require both a firm scope of public infrastructure work and a confirmed lot yield; those two pieces — infrastructure cost and number of lots — must be known before staff can prepare the preliminary service-and-assessment plan for council review. The developer’s current concept shows a potential 44 large estate lots but Harbin said that yield must be verified after environmental clearance and approval of a revised deed by Exxon.

Councilmember Hanks asked for confirmation that Exxon will amend or replace its special warranty deed after remediation is completed. Staff confirmed the deed will be amended and that an updated deed will be provided to council before the service-and-assessment plan is finalized.

The resolution creating the Fallingleaf Ranch PID passed 5-1. Mayor and council members said the approvals at this stage authorize the PID’s formation only; no PID bonds will be sold or drawn until the service-and-assessment plan and environmental clearances are complete.

The item closes a public hearing the council opened earlier in the meeting to receive comments and presentations from the developer’s team and concerned residents. Staff said additional council votes will be required to approve any subsequent service-and-assessment plan and to authorize issuance of bonds.