Council gives first-reading consent to Lakeside Estates ETJ MUD; developers to build roads, waterline and no-discharge wastewater plant

The Georgetown City Council approved, on first reading, a consent agreement consenting to the creation of a municipal utility district (MUD) for the Lakeside Estates project in the city’s extraterritorial jurisdiction.

Project overview: Assistant City Manager Nick Woolery said Lakeside Estates comprises about 722.1 acres west of Lake Georgetown and proposes roughly 1,300 single-family lots, a 14.6-acre hotel and resort, 43.4 acres of regional parkland, pedestrian and bike trail connections (including a Goodwater Loop Trail connection) and extensive off-site transportation improvements. The developer will construct a portion of Cross Creek Road, dedicate right-of-way, and make intersection improvements at State Highway 29 and Cross Creek Road. The developer also will construct a master 30-inch water line through the site and convey it to the city. Water service will be provided by the city; wastewater will be served by a permanent, no-discharge package plant that will not connect to the city system and will remain owned and operated by the district or HOA.

Key agreement terms and exceptions: Woolery said the agreement requires elevated architectural and masonry standards (85% masonry on elevations visible from public streets or parks), minimum parkland and trail commitments (43.4 acres), a private amenity center and HOA/district maintenance of common areas. The agreement also contains an extended 15-year window for bond issuance (a five-year exception to council MUD policy) and a maximum MUD tax-rate cap of $0.975 per $100 valuation (2.5 cents above council policy). The development will be within Emergency Service District No. 4 for fire and EMS; the city will not provide police, fire or EMS. The agreement also includes a 9% master development fee (MDF) on bond proceeds to compensate the city for services, and a post-annexation surcharge mechanism that could allow the city to collect funds to retire remaining MUD debt if the city annexes the development before debt is paid.

Council questions and staff responses: Council members asked whether the developer could obtain easements through a piece of land that was removed from the city’s ETJ; staff said the project is within the city’s water CCN territory and the developer must secure required easements. Council also asked whether Parcel 13 would connect to Santa Rita Ranch only for emergency access; staff said the connection would be emergency access only. On wastewater operations, Woolery said the agreement requires the district to contract with a licensed operator. Council also discussed exceptions to bond-issuance timing and tax-rate caps; staff said the off-site road and water-line infrastructure make this project unique and explained why staff recommended policy exceptions.

Action: Council opened and closed the public hearing (no speakers) and approved the consent agreement on motion; the record shows a motion and second, and the item passed on first reading.

Why it matters: The MUD consent is the first step for Lakeside Estates to proceed in the city’s extraterritorial jurisdiction. The project includes significant off-site infrastructure the developer must provide before vertical development; it raises policy questions about MUD bond maturities, tax-rate caps and long-term wastewater management in areas not connected to city sewer.

Next steps: The consent agreement will proceed through required filings and future council approvals for related agreements (for example, strategic partnership or annexation timing). Staff will return with the documentation required to finalize the MUD creation and related contracts.