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City Council approves court‑ordered EDC settlement for Velasco development after heated debate
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Summary
Freeport City Council voted 4–1 to approve resolution 2026‑3042, a mediated settlement transferring EDC property interests to developers in exchange for infrastructure completion and a 12/31/2027 occupancy deadline; dissenters criticized transparency, engineering documentation and the project's fiscal return.
Freeport City Council approved resolution 2026‑3042 on April 20, 2026, adopting a mediated settlement intended to resolve years of litigation over lots in the Velasco town site and to compel completion of roadway and infrastructure improvements.
The settlement requires the Economic Development Corporation (EDC) to convey property interests to developer AMG (and co‑lender GLNL) in return for the developers’ commitment to finish required infrastructure and construct residential units to city standards. Certificates of occupancy for all units must be issued by Dec. 31, 2027; the agreement imposes liquidated damages of $500 per day after a 10‑day cure period for missed deadlines and assigns road construction costs 50% to the Freeport EDC, 25% to AMG and 25% to GLNL.
Brad Ireland, counsel for AMG, told the council the settlement is a compromise that “does not make [AMG] whole” after years of litigation, and said AMG had been “out its funds approximately $400,000 for now 6 years.” Judge Sylvester, the mediator, described the outcome as the product of good‑faith negotiation and said mediations of this type rarely produce a single clear winner.
The measure drew extended public comment and prolonged council discussion. Councilman Pena opposed the agreement and repeatedly questioned the EDC’s prior oversight, financial documentation and the engineering reviews underlying the work. “This is a raw bad deal for the city of Freeport,” Pena said on the record, urging the council to see engineering reports and receipts before approving the settlement.
Supporters said the agreement resolves long‑running disputes, avoids further litigation risk, and provides a clear, court‑enforceable schedule for completing blighted parcels. EDC representatives and an EDC board member present reminded the council that the EDC board had previously voted unanimously to accept the resolution and that mediation included city and technical stakeholders.
After debate, the council passed the resolution 4–1; Councilman Pena cast the lone vote against. Council members thanked the mediator, counsel, city staff and EDC representatives for reaching an agreement that, proponents said, will replace unfinished structures with completed homes and deliver additional tax revenue.
Next steps: the settlement establishes enforceable deadlines and damages, and the council record shows the city and EDC will monitor completion activity and certificate‑of‑occupancy issuance through the end of 2027.
