AGENDA CAPTION:
Title
Consider approval of Resolution 2025-212R, approving an agreement to mutually terminate an Amended and Restated Cotton Center Development Agreement and Consent Agreement concerning approximately 1,786 acres of land in Caldwell County, east of the City; authorizing the City Manager, or her designee, to execute said agreement on behalf of the City; approving the release of said land from the City’s extraterritorial jurisdiction; and declaring an effective date.
Body
Meeting date: November 5, 2025
Department: City Attorney
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note: An associated settlement agreement approved by the City Council in relation to removing the subject property from the City’s wastewater service area further provides for payment to the city of $280,000 upon termination of the agreements.
Prior Council Action: City Council previously approved a settlement agreement with Walton Texas, LP and affiliated entities pursuant to which the parties agreed to terminate the Cotton Center Development Agreement and related Consent Agreement pertaining to creation of a municipal utility district for the subject property.
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Background Information:
• Cotton Center was a proposed development located in Caldwell County east of the city on approximately 1,786 acres of land. The property is in the City’s extraterritorial jurisdiction (ETJ).
• In 2014 the developer originally sought the City’s consent for the creation of a municipal utility district (MUD) and the City entered into a consent agreement with the developer.
• In 2016, the City also entered into a development agreement governing the annexation and development of the property. The agreement also provided for the extension of wastewater service to the property as the property is in the City’s wastewater service area.
• The developer has since requested that the consent agreement and development agreement be terminated and that the property be released from the City’s ETJ and wastewater service area.
• In connection with the release from the wastewater service area the developer filed a petition with the Public Utility seeking expedited release.
• On September 16, 2025 the City Council approved a settlement agreement with the developer under which the developer’s requests would be approved and the City would receive compensation in the amount of $280,000.00. The settlement agreement requires additional steps to finalize the settlement, including approval of a mutual termination agreement which is before the council at this meeting.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval of the item as presented.