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Neo Lago development agreement approved despite council concerns over late packet and septic conditions
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Summary
Council approved the Neo Lago development agreement (development 24-11), which requires annexation, septic feasibility/possible variance and water-line extension; one council member recorded opposition, and staff noted they will continue to work through CCN and septic issues with the developer.
The Montgomery City Council on Feb. 24 approved a development agreement for a tract along Neo Lago Drive (development 24-11) that staff said is consistent with prior feasibility work and a memorandum of understanding. The agreement was approved despite several council members saying they received the 45‑page agreement very late.
City staff summarized the agreement’s key terms: the developer must pursue annexation into the city, provide septic feasibility or seek a septic variance if necessary, extend a water line from the dead end on Miu Londo Drive to tie into an existing line on Lone Star Bend, and comply with standard impact fee and permitting requirements. Staff noted the MOU and feasibility steps previously considered no substantive changes in the development agreement.
A developer representative said the project team plans to proceed immediately with annexation and that another contractor or developer would assume the development agreement and construction. The developer acknowledged an outstanding graphical issue on the Public Utility Commission (PUC) map regarding CCN (certificates of convenience and necessity) limits and said they were working with the CCN holder to resolve it; staff said the city’s legal review did not expect the PUC mapping issue to block future service if handled properly.
A council member asked to table the item because the packet arrived late; staff apologized, said prior iterations had been reviewed by legal and developers, and explained time constraints in getting the item onto the agenda. After discussion, the motion to approve was made and seconded; the council approved the agreement with one recorded opposition from Stan Donaldson.
Next steps: the developer will begin annexation steps and return for any required septic variance if they pursue septic systems; staff and developer will continue to resolve CCN mapping and service questions with the PUC and the CCN holder.

