Lewisville approves amendment capping city sewer contribution at $2 million for Old Town development

Lewisville — The Lewisville City Council on Oct. 20 approved a first amended and restated economic development and utility participation agreement with Old Town Lewisville tenant 1 LP and Old Town Lewisville tenant 2 LP that limits the city's reimbursement for sewer oversizing and extension work to $2,000,000 and extends project timelines.

The amendment, presented during the council's workshop and later approved on the consent agenda, responds to newly detailed engineering estimates for sewer and regional detention needs in the East Side of Old Town. City staff said the estimated cost for oversizing and extension rose from a preliminary $2,000,000 to about $4,300,000 as more information became available.

City staff said the amendment keeps the city's contribution at the previously studied $2,000,000 and requires the developer to invest roughly another $2,000,000 to cover the remainder of the oversizing and extension costs. The agreement also includes a not-to-exceed additional $350,000 for potential price increases subject to city manager approval, a $70,000 grant toward phase 2, and reimbursement of estimated engineering plan-review fees of $102,632.

“The amendment keeps our contribution at $2,000,000…O'Halla is actually going to be absorbing the rest of that cost,” a staff member said during the workshop presentation, noting the developer agreed to invest its share for area-wide benefits beyond the developer's own property.

City staff and the developer earlier had an agreement that the city would reimburse 100% of oversizing costs but did not set a dollar cap because the final scope and cost were unknown. The amendment formalizes specific maximums and revises project commencement deadlines, which city staff attributed to delays in securing easements required for construction.

Council approved the amendment as part of the consent agenda; the motion carried 4–0.

What was discussed - The presentation described a multi-parcel area that currently lacks consolidated sewer infrastructure, noting private lift stations and undersized storm and sewer systems along College Street and Valley Ridge. - Staff said a study conducted about 18 months earlier identified both sewer extension and oversizing needs and produced the earlier $2,000,000 estimate; subsequent updates raised the estimated oversizing and extension total to about $4.3 million. - The developer agreed to fund the portion above the city's capped contribution and to assist with design of a regional detention solution, including potential land acquisition of roughly 2 acres for detention.

Next steps and limits The amendment authorizes the city manager or designee to execute the agreement and formalizes funding sources that staff said are available in the Standard at Old Town capital project fund, the general fund, and plan-review fee revenue. Staff emphasized additional details — including final sewer route, final detention design, and any necessary separate agreements for sewer line extension — will come back to council for review as those specifics are developed.

Council vote and procedural notes - Approval of the first amended and restated economic development and utility participation agreement (consent item 5): 4–0.

Clarifying details - City reimbursement cap for sewer oversizing and extension: $2,000,000 (staff presentation). - Developer additional investment toward sewer expansion: approximately $2,000,000 (staff presentation). - Updated estimated total oversizing and extension cost: ~ $4,300,000 (staff presentation). - Additional contingency authority in agreement: up to $350,000 subject to city manager approval. - Phase 2 grant: $70,000; Phase 1 engineering plan-review reimbursement estimate: $102,632.

Sources: City staff presentation to Lewisville City Council at the Oct. 20 workshop and the consent-agenda backup materials.