Coppell council backs exploring state-authorized special district to expand Old Town uses

Coppell city staff on Feb. 7 presented a plan to pursue a state-authorized special district for Old Town that could allow certain establishments now restricted by local rules.

Callie Willis, a city staff presenter, told the council the special district would be “state authorized,” geographically limited to a defined area and must serve a specific public purpose such as economic development or community vitality. She said staff had reviewed zoning, local-option constraints and relevant state rules and identified special-district legislation as the most viable tool to enable an establishment in Old Town "that could not happen with the current" constraints.

Willis outlined a three-phase approach. Phase 1 (now through June) would focus on drafting a framework—defining fiscal boundaries, permitted uses, governance and public engagement—and producing the draft the council would review. Phase 2 would move the draft into the legislative process, with staff and legislative consultants working with state lawmakers during the filing and committee periods in the 90th legislative session. Phase 3 would cover implementation and governance if the bill passes; Willis noted that "no legislative action will move forward without council direction" and stressed passage is not guaranteed.

Council members asked detailed questions about who would govern the district and whether city council could serve on an implementing board. Willis said council would set the direction for governance but that such districts commonly have a separate oversight board. Several members also asked about the legislative risk and whether staff had preliminary support from local lawmakers; staff said consultant Jennifer Rodriguez had had exploratory conversations with Senator Parker and Representative Garcia Hernandez.

Members debated the practical impact of a special district in Old Town, with some urging an aggressive approach to capture as much area as practical to future-proof redevelopment options and others cautioning that existing development patterns and traffic counts limit the types of retailers and restaurants likely to locate there. Councilors repeatedly framed success in terms of measurable outcomes—foot traffic, art‑center attendance, dwell time and sales—rather than immediate dramatic transformation.

The council did not adopt formal legislation or a final boundary on Feb. 7. Instead, the direction to staff was to continue Phase 1 work (refine boundaries and permitted uses, develop public engagement materials and draft legislative framework) and return with A/B options and clarifying information, including data from the Texas comptroller's district list and further outreach to legislators. The next steps include public meetings on proposed boundaries and staff follow-up on the feasibility and language of any proposed bill.