Council advances land-development code changes to replace lease-purchase provisions with utility main development agreements

On April 21, 2025, the Stillwater City Council advanced two related land-development code text amendments that change how developers and the city handle water and sewer infrastructure that will serve properties beyond a single project.

Development services staff told the council the amendments remove an existing lease-purchase provision and replace it with a utility main development agreement that will allow the city to accept, own and maintain infrastructure while providing a mechanism for developers to recoup initial investments when other properties later tie in. David Barth, development services, said the new agreement "allows the city and the developer to enter into an agreement to where they can still recapture their initial investment" and that "we would own it and maintain it." He also told council that the change addresses prior problems with developer-owned mains and missing easements.

The package of changes also includes a separate amendment to the subdivision plat rules that would require required on-site improvements — streets, water and sewer — to be constructed and accepted (or secured by an approved development agreement or bond) before a final plat is filed with the county. Barth said the change removes a long-standing exception that allowed some residential final plats to be recorded before infrastructure was completed, a situation he called "problematic" because lots without streets or utilities could be sold.

Both text amendments were considered after a public hearing at which no members of the public spoke. The Planning Commission recommended approval of the Chapter 23 changes by a 4-0 vote; staff recommended the council accept that recommendation. The council voted 4-0 to accept the Planning Commission and staff recommendations and advanced ordinances implementing the changes to second reading.

Why this matters: the amendments change who legally owns and maintains water and sewer mains constructed by private developers and tighten requirements around final subdivision plats. The changes are intended to reduce fragmented utility ownership, ensure easements are secured, and provide a clear mechanism for cost recovery when infrastructure serves more than one property.

Next steps: The ordinances were advanced to second reading; final adoption will be scheduled for the council's subsequent meeting cycle as part of the ordinance second-reading process.