Hutto City Council tabled a vote at its regularly scheduled meeting Thursday night to approve amendments to a 2013 planned unit development, or PUD, with developers for the Hutto Crossings development.

Odis Jones, city manager for the city of Hutto, asked council members to delay the vote to a later date due to concerns with the 380 economic development agreement the city signed with the Hutto Crossings, also known as Carmel Creek, developers back in 2007.

A 380 development agreement provides municipalities the ability to offer incentives packages to secure economic development such as retail or commercial projects. The economic development tool allows municipalities to provide loans or grants of city funds.

Hutto approved a PUD, which is a zoning agreement, on the Hutto Crossings property in 2013.

According to Jones, Hutto is possibly on the hook to pay the developer $4 million in 2019 unless both parties agree to an extension.

“I have no way of making that payment (from the fund),” Jones told council members.

Part of the problem, according to Jones, is that the 380 development deal made with the city contained no mandate that development occur on the property within a certain timeline. Theoretically, the city could be forced to sit and pay the developer city loans while the property goes undeveloped.

“It was a bad agreement,” Jones told council members. Jones said he and his staff are currently in negotiations with the developer to re-work the 380 development agreement.

Council members were told that withholding the PUD amendments effectively provides the city with a bargaining chip to renegotiate the 380 economic development agreement. Per Jones, city staff is looking to buy more time to allow for additional retail to develop on the Hutto Crossings property. That retail, in addition to the residential properties currently developed on the site, would provide tax revenue the city needs to pay those economic development loans out.

According to Jones, there is just $88,000 currently in the 380 fund after five years of development on the Hutto Crossings property.

"It’s not looking like over the next year they’re going to generate $4 million. That’s our quandary," Jones said.

As it currently stands, a Circle K gas station is the only commercial development that has opened on the property. That store opened April 5.

In October, Community Impact Newspaper reported that two restaurants – Wendy’s and Popeye’s – would be built on the property. Real estate listings show Global New Millennium Partners Ltd. purchased 1.95 acres to develop the restaurants.

Pulte Homes, a real estate developer based out of Atlanta, has constructed homes on the site, and a senior-living neighborhood is also established on the property. Currently, construction on several multi-family units is underway.

"Because that development has not created any commercial or retail development and because the residential development is not on the tax rolls, the 380 fund is not creating enough revenue for the city to pay the $4 million payment next year," Jones said.

No date was set for further discussion the Hutto Crossings PUD amendments.