Highland Village drops cabin plan at Pilot Knoll Park, approves gatehouse and boat-ramp work

Highland Village officials on Oct. 28 abandoned plans to build overnight cabins at Pilot Knoll Park after updated construction manager–at‑risk (CMAR) cost estimates and revised utility and septic assessments showed the cabins would not deliver the revenue once projected when the bonds were issued.

Parks staff presented a 60% design‑level review and three septic options prepared by an on‑site sewage specialist. Staff said the preferred strategy is to proceed without cabins and to move forward with a modular gatehouse, day‑use improvements, restroom and RV area upgrades and boat‑ramp improvements. Council approved the direction unanimously.

Why it matters: The cabins had been included in the 2021 park bond program and were expected to increase overnight rental revenue. Updated pricing from the CMAR showed cabin construction and infrastructure, including a modern on‑site sewage system and water main work, would raise the total project cost well above earlier estimates; even optimistic occupancy scenarios did not produce the prior projected net benefit. Staff also reported that modern RVs produce substantially more wastewater than the park’s existing septic infrastructure was designed for, creating a need for a larger, engineered sewage solution or more frequent pumping and ongoing maintenance.

What staff reported: Parks staff presented contractor and engineering price ranges. KCB Engineering provided three estimates for on‑site sewage systems: the low estimate for cabin‑specific septic work was about $173,550 and the high was roughly $260,000 (for the cabins alone), while a consolidated package plant alternative for the full park had higher capital cost but lower long‑term maintenance. Staff also reported a 2023 quote to extend domestic water to the cabins at roughly $1.1 million (adjusted for escalation), and they showed CMAR preconstruction totals that put combined cabin and infrastructure work in the multi‑million dollar range. Staff noted the Texas Parks & Wildlife construction grant timeline requires reimbursement requests by April 30, 2028, and that Corps of Engineers review for the boat ramp remains on an uncertain federal timeline.

Council direction and next steps: Council directed staff to proceed with the non‑overnight elements of the plan — gatehouse, RV/day‑use restrooms and boat‑ramp improvements — and to pause the cabin program. Council asked staff to: - Move forward with CMAR procurement and design adjustments for the gatehouse and day‑use/RV elements; - Continue coordination with Texas Parks & Wildlife and the U.S. Army Corps of Engineers on the boat‑ramp grant and permitting timeline; and - Explore a future reallocation of bond funds (including considering a possible future increase in premium RV slips at the former cabin sites) and provide a cost/benefit analysis before committing additional bond proceeds to other park projects.

What council members said: Council members expressed concern about the growing gap between earlier cost assumptions and current estimates and noted the city’s recent operating‑fund pressures. Council member Rhonda Hurston and others said the cabins no longer meet the council’s financial threshold for proceeding; staff was asked to return with refined cost allocations and any reallocation proposals for other bond projects.

Context and background: Pilot Knoll Park has a mix of day‑use, RV and boat‑launch facilities. The 2021 park bond included funds for improvements and an overnight component; the park’s RV sites typically report high occupancy levels, and staff told council that RV slips generate steady rental revenue. Over time, however, building‑cost escalation, supply issues and updated regulatory review of septic/wastewater systems have reduced the cabin project’s feasibility under the original financial assumptions. The council’s decision preserves the gatehouse and waterfront improvements while setting aside overnight cabin construction for reconsideration.