The Bay City City Council on Monday approved an amended annexation of several tracts totaling additional acreage for a proposed 86‑unit multifamily development and voted to expand the city's economic‑development agreement to include an extra parcel. The council also authorized contracts for disaster‑recovery grant administration and engineering, approved a task order for a citywide stormwater management plan, and awarded multiple six‑month unit‑price contracts for road materials.

The measures together clear the way for the Reserve at River Bend apartment project and related utility reimbursements, advance planning for stormwater and drainage projects that staff hopes to submit to the Texas General Land Office's Disaster Recovery Reallocation Program (DRRP) and FEMA hazard mitigation funds, and ensure the public works department has materials on hand for near‑term repairs.

Council members and staff emphasized speed on the annexation and infrastructure packages so developers could begin construction and staff could be positioned to submit federal grant applications if the city is invited to the full DRRP application window. Council also approved two downtown business incentive packages and a small slate of personnel recognitions during the meeting.

“We discovered an additional 1.748‑acre tract while reviewing stormwater plans,” a city staff member said during the public hearing on the annexation, explaining why the earlier ordinance was being amended to include a second 1.748‑acre parcel in addition to a 5.827‑acre tract. The developer, BC Development Group LLC, intends to assemble the properties for the Reserve at River Bend multifamily complex; staff reported the full development footprint is roughly 10 acres when the three tracts are combined.

Council voted to approve an amended annexation ordinance and the related first amendment to the Chapter 380 economic‑development agreement to add the newly identified tract. The 380 amendment authorizes up to $100,000 in utility‑infrastructure reimbursement to the developer as part of the incentive package; staff recommended approval so utility work can proceed.

Separately, the council authorized staff to proceed with procurement awards and professional services intended to support federal grant applications. Staff recommended awarding engineering qualifications to two firms that responded to the city's request — Urban Engineering and Lynn Engineering — so the workload for three potential DRRP projects can be divided between firms. Staff also recommended awarding grant‑administration services to GrantWorks, the sole proposer to the city's request for proposals.

City staff identified three preliminary projects for DRRP consideration if the city is called back for full applications: a Del Norte subdivision drainage project with an estimated request of about $1.8 million, drainage work in the Tinney Homes area estimated at about $875,000, and a northwest quadrant waterline project estimated at about $2.6 million. The DRRP preliminary submissions were filed with estimated costs; staff said the full application window opens February 3 and, if the city is invited back, full applications would be due April 3. The program carries a 10 percent local match requirement.

On related hazard‑funding work, the council approved Task Authorization No. 1 with Freese and Nichols for a citywide stormwater management plan under the FEMA Hazard Mitigation Grant Program (HMGP). Staff described the scope as an 18‑month project that will integrate regional H&H modeling with the city's local stormwater network, map infrastructure into GIS, and identify the top flood‑hazard areas and three mitigation options for each. The stormwater management plan budget is $650,000 with a 10 percent local match; HMGP management costs are funded separately at up to $32,000.

The council also approved awards of multiple unit‑price contracts for road and aggregate materials to the lowest responsive bidders for a six‑month term, so public works can purchase materials for in‑house street repairs. Staff said seven vendors responded and that award recommendations were made to lowest responsive bidders (some vendor names were local firms; one bidder was disqualified as outside the city's mileage requirement).

Council approved two incentive agreements recommended by the Bay City Community Development Corporation: an $80,000 incentive for Fit for Life for exterior and parking improvements, and a $20,000 incentive for El Zarape related to signage and interior HVAC improvements. Both measures were described as second readings and passed on council votes.

Other council business that passed included approval of consent agenda minutes, appointment of Casey Waller to the Main Street board, adoption of a revised library policy manual, and the city's municipal court quarterly update. The meeting included staff recognitions for promotions and commendations for police officers involved in lifesaving actions.

City staff and councilors also heard an introduction from the new Bay City Steel (formerly Henderson Fabrication) operator, Bluda Fabrication / Pilot Point Steel, which the presenter said had acquired the facility in November and planned to rehire original employees and scale operations back to 20–25 employees over time.

No actions resulted from the closed executive‑session items the council announced; those items covered economic development negotiations, real property deliberations and legal consultations pursuant to Texas Government Code sections 551.087, 551.072 and 551.071. The meeting adjourned following a brief round of council comments.

Votes at a glance:
- Consent agenda (minutes of Nov. 12 and Dec. 10, 2024): approved (motion carried).
- Appointment: Casey Waller, Main Street board: approved (motion carried).
- Ordinance (amended annexation including 5.827‑acre tract and two 1.748‑acre tracts) and annexation service plan: approved (motion carried).
- First amendment to Chapter 380 economic development agreement (BC Development Group LLC), adding additional tract and authorizing up to $100,000 reimbursement: approved (motion carried).
- Resolution authorizing BC Community Development Corp. contract for Fit for Life incentive (up to $80,000): approved (motion carried).
- Resolution authorizing BC Community Development Corp. contract for El Zarape incentive ($20,000): approved (motion carried).
- Library policy manual update (policy adoption): approved (motion carried).
- Award of professional engineering qualifications (Urban Engineering; Lynn Engineering) for DRRP projects and award of grant administration to GrantWorks: approved (motion carried).
- Task Authorization No. 1 with Freese and Nichols for stormwater management plan (HMGP): approved (motion carried).
- Unit‑price contract awards for public works road materials to multiple vendors, six‑month term: approved (motion carried).

Details on votes, motions, and named movers/seconders were not consistently recorded in the public transcript; where a specific mover or second was not stated on the record, the city clerk recorded a motion and the council voted in favor.

For a full breakdown of individual agenda items, staff reports and related documents, consult the city's posted agenda packet and the official minutes.