Developers warn of litigation as Liberty Hill council approves one site plan and postpones two

Liberty Hill’s City Council approved the site plan for Lot 3, Block A (the Mansions at Liberty Hill) on a unanimous vote while postponing two other pending site-development permits after developers raised objections about water availability and last-minute conditions.

The council voted to approve the Lot 3 site plan contingent on compliance with Unified Development Code section 6.04(e) by submitting an updated utility evaluation and confirmation of utility availability from the city engineer; the council voted to waive applicable city fees for that utility evaluation. The motion passed unanimously.

Developers’ attorneys told the council the three site plans should be approved without new conditions. Will Thompson of Wachowski Keller Cone, representing the developers, said the city has a “non discretionary duty to grant these kinds of permits under the Unified Development Code when the specified criteria are met,” and that staff letters showed criteria were met. Thompson also said his clients had reserved the water necessary for the projects and that certificates of occupancy could be withheld until water issues are resolved: “The city staff notes … that no certificate of occupancy will be granted until the water issue is worked out,” he said.

Matt Hiles, identifying himself as part of the mansion ownership and development team, told the council the newly proposed conditions — including questions about multifamily clubhouse pools, fire-flow calculations and phasing language — were not in staff’s original recommendations and were being used as last-minute obstacles. “Staff can’t cite supporting code for their new concerns,” Hiles said, urging the council to approve all three SDPs at the next meeting “with no … unsubstantiated conditions.”

After hearing public comment, the council moved to postpone items 6d and 6e — the Cottages at Liberty Hill and the Luxe at Liberty Hill site plans — to the first City Council meeting in October. The council made clear that utility and water availability issues would continue to be part of the process; the approved Lot 3 site plan was explicitly conditioned on a utility evaluation and confirmation of service before occupancy.

Next steps: the Lot 3 approval proceeds with the required utility documentation; the council will reconsider 6d and 6e at the October meeting. Developers signaled they may pursue legal remedies if the city withholds approvals they say are required by code.