Elgin council approves amended Lund Farm development agreement, adds school site and utility agreements

The Elgin City Council on Monday approved an amended and restated development and consent agreement with Lund Farm Investment LLC and Lund Farm Municipal Utility District that adds approximately 16.766 acres to the development and includes a dedicated school site of about 13.5 acres.

The package approved by the council included (1) the amended development and consent agreement, (2) an amended wholesale water service agreement, (3) an amended wholesale wastewater service agreement, and (4) an agreement acknowledging a school-site donation and conveyance procedure that allows the developer to convey the site directly to Elgin Independent School District (EISD). The council also authorized the interim city manager to procure engineering services to amend the city’s water Certificate of Convenience and Necessity (CCN) boundary to accommodate the expanded development.

City staff described the changes as an update to the project concept plan to reflect the newly acquired property and to relocate the city’s planned elevated storage tank to accommodate the school site. Staff said the school site is roughly 13.5 acres and that the developer purchased just over 16 acres contiguous to the previously approved development.

Bo (city staff) said the amended concept will show the school site and the relocated elevated storage tank and that the developer’s purchase reduced a small number of planned homes "by a little bit less than 8, right around 8 total." He told the council the development remains primarily private: internal roads, sidewalks, drainage, and water and sewer lines inside the subdivision will be privately maintained, not by the city.

Mister Perry (city staff) explained the wholesale water agreement changes reflect increased minimum elevated-tank sizing because of the added school and roughly a few additional homes. Perry said the city will collect impact fees from the developer that can be used to oversize the tank; the developer will pay the minimum required portion. Perry and staff said the proposed elevated tank will tie into the city’s main system and help add storage and resiliency to the north part of Elgin.

Council members asked about traffic and street improvements on Lund Road, which is a county road. Bo said a traffic impact analysis (TIA) will be required when the developer reaches the phase that connects Lund Road; the county reviews and must approve improvements to that county road. Bo said the county will control final decisions about widening or major reconstruction but that the developer must submit the TIA and work with the county and the city on required improvements.

Council member Gibson recorded a continued opposition to the development at the time of the vote. The council nonetheless approved the package; staff noted the school district’s program managers and engineers had reviewed the parcel and indicated the district had signed off on the site for planning purposes.

The council also approved amending the wholesale wastewater agreement with the associated MUD to account for the development’s pro rata share of treatment-plant expansion and conveyance-line costs. Staff described that change as an update to the math behind the wholesale wastewater arrangement and said internal wastewater infrastructure will be privately owned until it is conveyed to the city per the agreement.

City staff said the development agreement and related wholesale-service agreements are intended to set fees, service responsibilities and the sequence of improvements (water, wastewater and road access) and to make clear how the school site would be conveyed to EISD when the district and developer reach a separate agreement.

The council approved these items in separate resolutions that staff presented as a coordinated package because the additional acreage and school site required updates across multiple agreements. No specific funding from the city’s general fund was identified; staff said developer fees and impact-fee collections would fund the city’s planned oversizing of the elevated tank.

Votes at a glance: the motions to approve the amended development agreement and the related wholesale water and wastewater agreements and the school site resolution passed; at least one council member (Gibson) recorded opposition on one or more items during the roll calls.