At a meeting Oct. 28 the San Marcos Planning & Zoning Commission recommended approval of a development agreement for a proposed municipal utility district on 2,358 acres east of the San Marcos Regional Airport and north of the city of Martindale.

The proposed development is called Cotton Center and was brought to the city by Walton Development and Management, a real estate firm based in Canada.

"Cotton Center has the potential to become one of central Texas's next great master-planned, mixed-use communities," Walton General Manager Becky Collins said in a prepared statement. "At build out, Cotton Center could support thousands of jobs and contribute significantly to the local economy in the city of San Marcos. Walton has submitted a MUD application to the city and we look forward to continuing to work together with the city and other local stakeholders on the project."

According to the development agreement submitted to the city and approved by council Sept. 16, the project would include 1,150 acres of single-family residential space, 78 acres of multifamily residential space as well as parks, commercial space and land earmarked for new middle and elementary school campuses.

The development is in the city's extraterritorial jurisdiction—land outside the city limits that only San Marcos has the right to annex. Creation of a municipal utility district will require the city to forego annexation of the land for many years.

Included in the agreement is a provision that Walton will pay the city $1.7 million as a form of reimbursement for lost tax revenue the city would have collected if it were to annex the land.

Kevin Burke, economic and development projects coordinator for the city said the city will retain the ability to annex the industrial and commercial portions of the property if development occurs in those areas.

Cotton Center will receive water service from the Maxwell Water Supply Corporation and wastewater service from the city of San Marcos.

City Council will consider approval of creation of the MUD at a future meeting.