Council approves amended wastewater agreement for Rancho 12 (CRTX Development) with delayed impact-fee terms

Dripping Springs City Council approved a second amended and restated wastewater service and fee agreement with CRTX Development LLC for the Rancho 12 multifamily project that formalizes delayed payment of impact fees while the developer temporarily uses a septic system for phase 1.

Staff explained the background: the project began construction under the understanding the city could not initially provide wastewater service, so the developer installed septic and began paying a delayed-connection fee ($3,500 per month) starting August 2023; those payments go into the utility fund and are not credited against impact fees. Under the amendment the developer must pay the full impact-fee amount for 70 LUEs within 30 days of the city providing notice that capacity is available. If the developer does not connect phase 2 within 18 months of city notice, the city may reclaim unconnected LUEs.

Staff said the amendment helps ensure capacity held or returned to the city if the developer does not timely connect and provides a path for the developer to obtain certificates of occupancy once requirements are met. A motion to approve the amendment passed on a voice vote.