Council approves Northpointe agreement to advance Lakeside connection after eminent-domain concerns; developer to escrow $2 million

Pflugerville City Council approved an acquisition and improvement agreement with Northpointe Development to advance construction of the Colorado Sand Drive connection, an action staff said is intended to clear a long-standing right-of-way issue that has delayed development.

Under the agreement, Northpointe must escrow $2,000,000 within 10 days of approval so the city can begin parcel acquisitions and move the roadway project forward. City staff said the arrangement is intended to enable a priority roadway connection that had been contemplated in the project's PUD but had lacked the necessary parcels under developer control.

Councilmembers raised concerns about using eminent-domain authority and whether the proposed takings would primarily benefit a private party. "The use of eminent domain for what does not appear to be entirely a public purpose, but is in fact at least in part a private purpose to benefit a third party," one councilmember said, asking whether the city could face constitutional limits. Staff said the city would use its eminent-domain authority only if necessary and that the agreement aims to avoid protracted delay.

Brent Miles of Northpointe told council the company has tried for years to resolve the issue and that Northpointe is prepared to pay for the acquisition to keep the project moving. "I've been trying to clean up this mess for years," Miles said, noting prior conversations with the private property owner and ongoing staff negotiations. City staff also explained that the city previously obtained an appraisal and that the transaction includes constructing replacement parking for a church parcel tied to the broader downtown plan.

Council approved the item and then recessed into executive session on related real-property deliberations; when council returned it stated no action had been taken in executive session on those matters.