The Georgetown City Council approved the first reading of an ordinance to annex 20.68 acres of land off I-35 on March 28, making way for a future multifamily development by Mill Creek Residential.

The annexation, located at 3520 I-35 in Georgetown, was approved with an initial multifamily zoning designation after the Georgetown Planning and Zoning Commission recommended denying the request in March 2022.

Neighborhood and Housing Program Manager Cesar Acosta said the zoning did not comply with the city’s comprehensive plan, with the future land use intended to support suburban use, or single-family detached units. He said the zoning would allow the property to have up to 500 units and could stress the capacity of Market Street, which would service the community.

“What would make it comply is just kind of waiting for the proper infrastructure [to] develop, for the wastewater to come through the Berry Creek interceptor and for a road network to connect these roads to give them alternative routes,” Acosta said.

However, developers are planning to have 350 to 400 units at the site. Amanda Brown, a consultant representing Mill Creek Residential, said construction would not occur until wastewater infrastructure is put in place, adding that the property would generate around $3.6 million in impact fees to the city.

“It’s a great location to provide much-needed housing in this area that should have thousands of jobs coming online in close proximity to those in the near future, and it has really close and good access to a very nice trailhead into Berry Creek Park,” she said.

Developers do not expect construction to begin until 2025.

While the road configuration was a concern to the council, multiple counselors said the single family zoning does not seem appropriate for the land due to the proximity to I-35. A multifamily complex, meanwhile, would create a buffer between the interstate and future single-family housing further to the east.

District 5 Councilor Kevin Pitts also said impact fees could help improve Market Street, adding that the state will need to update the road where SH 195 exits from I-35, and this could speed that work up.

“I can’t think of a use that is more appropriate, or a better alternative than this,” Pitts said. “There are a lot of jobs around that area.”