Friendswood board approves Reinvestment Zone No. 2 plan and Castle Biosciences development agreement amid neighborhood concerns

The Board of Directors for Reinvestment Zone No. 2 and the Friendswood City Council approved a financing and project plan for a roughly 326-acre reinvestment zone and unanimously approved a development agreement with Castle Biosciences Inc., city staff said, while residents urged caution about traffic, flooding and economic impacts.

City staff (identified in the meeting as Mr. Kabir) told the board the tax increment reinvestment zone (TIRZ) is reimbursement-based: developers will fund initial public infrastructure and be repaid from incremental tax revenue generated once developments produce taxable value. "Castle Biosciences is expected to pay the city of Friendswood $21,000,000 over the life of the TIRZ, and over the life of the TIRZ, we're gonna reimburse them $5,000,000," Kabir said, describing a projected net incremental inflow and other community benefits, including waterline conveyance improvements and reduced congestion on FM 518.

During public comment, multiple Wilderness Trails residents and neighbors opposed components of the plan and the parkway alignment that could open Castlewood or Applewood to through traffic. "When you're increasing the property value of that new zone, you're decreasing the values of the Wilderness Trails home," Janice Traeger said, adding concerns about developer fitness and litigation records. Isabelle Nielsen warned the proposal could divert customers away from Friendswood businesses, saying it could mean "1,000,000 of dollars of lost revenue over time." Deborah Chaney said residents had collected "284 signatures" opposing opening Castlewood. Catherine Serrais and Cameron Laird raised flooding and drainage concerns, saying roadway expansion and removal of open ditches could make neighborhoods more vulnerable to stormwater.

Board members questioned exhibits in the plan that listed $516,000,000 in non-project costs and a $97,000,000 city project cost, asking staff to explain timing and how reimbursement flows over decades. Staff reiterated that some costs—such as property purchased to host detention ponds or conveyance infrastructure—are allowable reimbursable costs and that no TIRZ bonds are planned at present; staff said developers could pursue a public improvement district (PID) bond in the future but that any bond issuance would require council approval.

Supporters on the board described the parkway as a long-needed mobility improvement and an evacuation route that would relieve congestion. Staff said the Castle project could bring roughly 600 biomedical jobs at full build-out and create indirect spending that benefits local shops and restaurants.

After discussion, the board voted unanimously to approve the financing and project plan and submit the plan to the city council for consideration later that night; the development agreement with Castle Biosciences also passed unanimously. The approvals set the framework for city reimbursement of certain developer-paid infrastructure expenses while preserving council oversight on future financing mechanisms.