City staff presented proposed amendments to the Cole Ranch Municipal Management District (MMD) operating and project agreements that would allow the developer to increase the benchmark tax rate, create a regional district structure, add supplemental projects and add a homestead event center and trail enhancements.

Charlie Rosendahl, Business Services Manager, said the Cole Ranch master‑planned development covers roughly 3,169 acres and envisions single‑family and multifamily housing plus commercial acreage. The developer is seeking to raise the benchmark portion of the authorized tax rate from 49¢ to 71¢ (a change staff described as intended to allow funding for the approved project program) and to remove the existing bond reimbursement cap so the 71¢ benchmark would serve as the cap on tax‑funded reimbursements.

The project agreement changes would add a regional 10‑foot trail loop (about 1.4 miles, estimated $3–$5 million) and a homestead event center with a minimum city‑access programming commitment (a minimum of 180 days of programming, including two Fridays and two Saturdays per month), increase the city’s affordable‑housing contribution from $1.5 million to $3 million, and add timing commitments for beginning construction of phase 1 by 2026 and for gas‑well plugging tied to buildout.

Rosendahl said the materials were similar to a prior Hunter Ranch amendment and that teal‑highlighted items in the staff packet reflected additional requests specific to Cole Ranch. He said the amendments would let the developer create a regional district to finance larger, cross‑parcel infrastructure while subdividing for local projects in smaller districts.

Council discussion focused on two areas: utilities/impact fees and the timing for plugging on‑site gas wells. Councilmember Jester and others asked staff to confirm how water/wastewater fund projections and impact‑fee studies interact with the proposed MMD changes; staff said an upcoming water/wastewater impact‑fee update could help address a projected shortfall shown in the developer's updated financial analysis. Several councilmembers urged earlier gas‑well plugging or a construction‑contingent standard (plug wells a set time prior to nearby construction) rather than a fixed calendar date, to avoid tying the city to third‑party schedules. The developer’s project manager, O.C. Vest, told council that the event center’s access depends on the Loop 288 frontage‑road construction and that gas well operators control certain abandonment dates by contract, which is why the proposed plug dates were tied to construction timing.

Councilmembers generally expressed support for direction to staff to draft the amendments and return with the changes for formal approval. Some asked staff to consider alternatives that would secure earlier well abandonment or attach performance milestones rather than fixed dates. Rosendahl said the proposed amendments would be brought back to council for action on Feb. 18 if council provided direction.