McGregor council approves package of grants, infrastructure and economic development measures

The McGregor City Council on Oct. 13 approved a series of resolutions, contracts and motions covering short-term rentals, a utility rate case intervention, grant signatories for a General Land Office (GLO) award, a TxDOT funding agreement for pedestrian signals, and several economic-development transactions.

The measures approved included a specific-use permit for a bed-and-breakfast/short-term rental at 302 Pierce Street; Resolution R-16-2025, recommending denial of Encore Electric Delivery Company’s rate increase filing and seeking reimbursement of the city’s reasonable rate‑case expenses; Resolution R-18-2025 and R-19-2025 to establish authorized signatories and civil‑rights policies required by a Community Development Block Grant-Mitigation (GLO) Resilient Communities Program (RCP) award; acceptance of an advanced funding agreement amendment with the Texas Department of Transportation for pedestrian-activated crossing signals on State Highway 317; authorization to join the Central Texas Water Alliance; and approvals related to Project Merlin, Project Star and a wastewater reuse agreement with SpaceX.

Council members voted without recorded roll-call tallies on the routine “aye/nay” voice votes shown in the meeting. For each item the council called for verbal aye/nays and the motions carried as announced by the presiding officer.

Kevin (staff member) explained the recommended posture on the Encore rate filing was to oppose the requested increase as part of a multi‑city intervention: “To pass the resolution? No. Because you don't wanna you don't wanna be the 1 that has to pay the higher rate for a period of time.” Lee (city finance director) and GrantWorks staff described the GLO RCP grant as an award to fund the city’s next comprehensive plan; Lee said the city “can receive up to $300,000” and that staff will follow the GLO’s administrative steps before work begins.

On the TxDOT project (State Highway 317, project 0398-03-066) staff told council the bids had come back higher than expected; TxDOT agreed to cover cost overruns beyond the city’s original local participation (the city’s share remains about $37,000 and staff said the amount is already budgeted). The council approved the related advanced funding agreement amendment.

In economic development items, the council approved an access agreement allowing due diligence on a 498‑acre parcel for Project Merlin (120 days with a 120‑day extension), and approved the sale of a 55‑acre tract to Messer (Project Star) after the buyer completed due diligence. The SpaceX wastewater reuse agreement, which staff said would send the city’s treated effluent to SpaceX for industrial reuse at a rate described as $2 per 1,000 gallons and would shift most capital responsibility to SpaceX, was also approved.

Other actions: the council voted to join the Central Texas Water Alliance (application submitted subject to later approval of any membership fee), postponed the NextLink lease agreement pending clarification of required easements, and approved candidate nominations (using the city’s votes) for the McLennan Central Praising District board.

Votes at a glance (items and outcomes mentioned on the record): - Specific-use permit, 302 Pierce St. — approved. - Resolution R-16-2025 (Encore Electric rate case intervention) — approved; city to seek reimbursement of rate-case expenses. - Resolution R-18-2025 (authorized signatories for GLO grant) — approved. - Resolution R-19-2025 (civil-rights policies tied to GLO grant) — approved. - Proclamation designating April as Fair Housing Month — signed by the mayor during the meeting. - Resolution R-20-2025 (advanced funding agreement with TxDOT, SH 317) — approved; city share approx. $37,000 budgeted. - Resolution R-21-2025 (McLennan Central Praising District nominations) — approved; council cast its votes for Ben Perry and Carrie (as discussed). - SpaceX wastewater-reuse agreement — approved. - Project Merlin access agreement (498 acres, 120-day due diligence) — approved. - Sale of 55 acres to Messer (Project Star) — approved. - NextLink lease agreement — postponed to next month. - Membership application to Central Texas Water Alliance — application approved to submit; final cost to be presented later.

The council did not provide roll-call vote tallies in the meeting minutes for these items; motions were carried on voice votes as announced by the presiding officer. Staff said additional contract paperwork, signage and bid re‑advertisements will follow as needed, and that staff will return to council with final contract documents or budget adjustments when required.

Staff and council emphasized follow-up steps: staff will finalize GLO compliance items and post requests for proposals for the comprehensive-plan consultant; TxDOT will process the AFA amendment and oversee construction procurement; and staff will coordinate the conveyance documents and closing for the Messer land sale.

Minor details and next steps that staff committed to report back on included the exact GLO match/split (staff said they would confirm whether the grant uses an 80/20 split), the specific budget line for the TxDOT local participation, and any membership fees for the Central Texas Water Alliance.