By Samantha Smith
The creation of a public improvement district (PID) was given the okay by the Kyle City Council earlier this month for a sprawling 762-acre development along FM 150 east in the city’s extra territorial jurisdiction (ETJ).
The Kyle City Council Aug. 17 voted 5-2 in favor of the creation of the Pecan Woods PID. The creation of the PID was a needed step in order for the Pecan Woods subdivision to be built. Council members Daphne Tenorio and Shane Arabie voted against the creation of the Public Improvement District.
The development area consists of 762.77 acres of land within Kyle’s ETJ. The area affected is between Heidenreich Lane, FM 150, Gristmill Road and property that is owned by other entities.
Council discussed what effects adding this much new development will have on the already strained wastewater plant owned by the city.
The developer, Walton Properties, will write the city a check for $2 million to help defray the cost of the upgrades that will be needed to handle the additional volume of wastewater expected from the development.
However, this payment will not be made until construction on the project begins, which is unknown at this time.
Walton Properties said Aug. 17 they will start construction as soon as possible, but that the overall market conditions will determine the start date.
Arabie attempted to amend the documents creating the PID to include a deadline for the start of construction but his motion died during the discussion.
The other council members felt that putting an arbitrary deadline to the start of construction will negatively impact future development deals and could possibly tarnish the city’s “good faith” negotiating stance.
The motion to create the PID passed with amendments outlining that the property owners within the PID need to have escrow accounts for the yearly payments of the assessments. The amendment also requires property owners to mention the property is within a PID when the individual houses are listed for sale on any Multiple Listing Service (MLS) for real estate sales.
Councilmember Travis Mitchell said that the new development is expected to bring “3,500 units or about 10,000 new residents” to the city.
Mitchell also said the tax assessment on the new residents of the PID will be comparable to what the city would charge them, but it is not double taxation as the PID is outside of city limits.
Mitchell said that he was originally “philosophically opposed” to the creation of the PID.
After studying the proposal, Mitchell said he “looked at how each component measures against the pros and cons” and concluded that the development would bring more benefits than burdens.
He added the development “will solve more problems than it creates and it will help reduce the tax burden on the citizens” within the Kyle city limits.
Besides new single and potentially multi-family housing and commercial development, the Pecan Woods subdivision will bring about 2 miles of eight-foot wide paved trail and other amenities to the community as a whole. The trail will be open to the public and will be city owned and maintained property.
Mitchell said the city made efforts to reach out to the current residents in the area most impacted by the new development, but no residents showed up to express support or disapproval.
