‘Project Sahara/The Grove’ developer proposes mixed-use build; city to build Go Forth road and to review water service and commercial commitments

City planning staff presented details on a proposed mixed-use development referred to as Project Sahara or The Grove at the Jan. 28 Planning and Zoning Commission meeting, outlining residential, commercial and infrastructure plans and recent changes to financing and responsibilities between the developer and the city.

The project spans land between FM 150 and County Road 158 and shows single-family homes, townhomes/attached units, two multifamily areas (one market rate and one affordable tax-credit property), parkland, and roughly 96,000 square feet of commercial in early sketches. Mr. Lutz, city staff, said the developer has proposed dedicating land for the Go Forth Road alignment and donating 3 acres at the front of the site for a civic use or to attract a grocer.

Key numbers and changes noted by staff include a request for 763 total LUEs to serve the single-family, multifamily and commercial portions; an earlier developer pilot payment proposal of $750,000 up front was revised, Mr. Lutz said, and the developer has instead proposed $3,000,000 up front, plus roughly $100,000 per year (escalating), and additional 3% annual increases in years 16 through 30 to offset tax abatements associated with the low-income housing component.

Mr. Lutz told commissioners the city will now construct the main stretch of Go Forth Road rather than the developer building and dedicating a completed road. He said that because the city would lead construction, the financing approach would change and the city would reimburse itself using available mechanisms tied to the development (staff referred to the existing PID and reimbursement arrangements).

Council feedback from a Jan. 21 presentation included requests that the developer increase the total commercial square footage and require at least 20,000 square feet of commercial per residential phase so rooftops are accompanied by services. Mr. Lutz said the developer was “analyzing their development to see how they can make that work” and that further negotiations are pending; no developer commitments beyond the revised financial offer and the donated 3 acres were finalized at the meeting.

Commissioners asked about water service. Mr. Lutz said the developer had originally planned to be served by County Line but the city is examining whether it can serve the project in a phased approach. He said the developer would still be responsible for on-site water and sewer infrastructure construction and that if the city could not serve the project the developer’s option B would be to proceed with another provider, though that would increase infrastructure costs for the developer.

Transportation features under discussion include two roundabouts at the project entrances; Mr. Lutz said traffic analyses and the roadway design are not finalized and the North roundabout could open as signalized and later be converted to a roundabout depending on coordination with TxDOT and Hays County road bond projects.

No final PUD or development agreement was approved at the meeting. Mr. Lutz told commissioners the development agreement (DA) and the planned-unit-district (PUD) documents will return with more detailed phasing, infrastructure timing, and any required standards for masonry, setbacks, and commercial-phasing requirements for commissioners and council review.