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Council directs staff to continue talks with developer on water service and ETJ inclusion
Summary
After a multi-hour presentation and questioning, the council instructed staff to continue negotiations with Dr. Hortonand Hunt County MUD 4 over water-service options and possible ETJ inclusion, recording a 3-2 split among members on moving forward.
City councilors directed staff to continue negotiating with a developer-backed utility district seeking water service and strategic extraterritorial jurisdiction (ETJ) expansion, after a lengthy presentation on infrastructure capacity and financing.
Jeff Miles, representing developer Dr. Horton, asked the council to consider two delivery models: city retail service with the city owning meters, or wholesale service with a master meter for the municipal utility district. Miles said the project is approximately 144 acres south of Magnolia along Highway 66 and that the developer has invested in water improvements in recent years.
"We are willing to contribute to line improvements and to the ground-storage needs," Miles said, describing earlier investments and offering to pay for attorney costs to draft any agreements. He added the developer could bring the tract into the city's ETJ if the council wants oversight of subdivision standards.
Councilors pressed for written capacity commitments and specifics on who would pay for off-site roads and extensions. Staff and consultants said North Texas Municipal Water had been informed of regional projections but had not issued a direct gallon-per-day guarantee for the site.
Council members recorded a split direction: three members favored continuing detailed discussions of the wholesale and retail options and ETJ inclusion, while two opposed. The council did not adopt a final agreement during the meeting but instructed staff to proceed with negotiations and to prepare draft development agreements and interlocal language for future review.
What happens next: staff will pursue additional technical clarifications (water capacity, CCN status, easements), attorney review of development-agreement terms, and a follow-up council briefing before any binding action.
