Updated Sept. 17, 2:43 p.m. San Marcos City Council directed staff to begin negotiating a development agreement with Walton Development and Management at its regular meeting Sept. 16. Senior Planner Amanda Hernandez said staff will bring a municipal utility district proposal to council "at a future meeting." Councilmembers Lisa Prewitt and Shane Scott formed a subcommittee to represent the council in negotiations with the developer. Sept. 16 Walton Development and Management, a development firm based in Canada, is proposing a municipal utility district, or MUD, on 2,358 acres in the city of San Marcos' unincorporated area east of the San Marcos Regional Airport and north of the city of Martindale. According to a proposed development agreement submitted to the city, the project, Cotton Center, would include 1,150 acres of single-family residential, 78 acres of multifamily residential, parks, commercial space and land earmarked for new middle and elementary school campuses. Council will vote Sept. 16 on whether to begin negotiations on a development agreement between the city and Walton Development. In a prepared statement, Becky Collins, general manager of Walton Development and Management, praised the potential of a project such as Cotton Center. "Cotton Center has the potential to become a vibrant, mixed-use community that will bring economic development and jobs to the region. Walton looks forward to continuing to work with the city of San Marcos and the local community to design and plan a community that meets the growing needs of San Marcos," she said. According to the proposal being presented to City Council, Walton is planning to develop Cotton Center in phases. The agreement also stipulates that Walton can occasionally change how it carries out development in response to market conditions. As a MUD, Cotton Center would remain outside the city limits. An elected board of directors would set a tax rate, often known as a MUD tax. The tax revenue would help fund infrastructure investments within the development.