Copperas Cove council rejects WBW development agreement after dispute over CCN reimbursement
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Summary
Council voted 5–2 to reject a development and annexation agreement with WBW Single Development Group after council members objected to city reimbursement of certificates‑of‑convenience‑and‑necessity (CCN) costs; council directed staff to return with a counterproposal reducing CCN reimbursement to 0%.
Copperas Cove — The City Council on Nov. 18 declined to authorize a development and annexation agreement with WBW Single Development Group following heated debate about whether the city should reimburse the developer for the cost of a certificate of convenience and necessity (CCN) for water service.
City Manager Ryan Havillah and Development Services Director Bobby Lewis described the terms of the proposed agreement for roughly 310.07 acres in the city's extraterritorial jurisdiction, and explained that the developer would purchase the CCN up front and the city would reimburse the cost over time tied to certificates of occupancy (COs). Lewis said the draft agreement set a reimbursement cap of $149,001.80 and a per‑CO reimbursement amount of $4,480.
The issue drew multiple Citizens Forum speakers who urged the council not to subsidize developer infrastructure. Ray Payne told the council, “Vote no on the CCN,” arguing that existing taxpayers should not pay costs that should be borne by the builder. Fred Chavez called direct reimbursement “corporate welfare,” and Daniel Hallbecker urged the council not to use water‑rate increases intended for infrastructure to cover CCN payments.
During council debate, several members said the city should not cover the developer’s CCN costs. Council member Dale Treadway said the city should not assume expenses that will fall to current customers, while Council member Jack Smith argued that growth brings revenue and that the developer had negotiated other public benefits such as pocket parks, right‑of‑way dedication and a traffic‑impact analysis.
After discussion and an executive‑session review with legal counsel, a motion to authorize the city manager to execute the agreement (moved by Jack Smith, seconded by John Hale) failed on roll call. The roll call recorded two votes in favor (Hale and Smith) and five opposed (Christina Stropos, Rita Hogan, Howard Hawk, Dale Treadway and Anya Hart). The mayor announced, “The motion fails.”
Council directed staff to return to WBW with a counterproposal that reduces the CCN reimbursement to 0 percent and to report back on whether the developer would proceed under those terms. City staff also noted a clerical acreage error in Exhibit B that the developer will correct before any future approval.
The council did not adopt the development agreement; staff will renegotiate CCN and other provisions with WBW and bring options back at a later meeting.
