Hutto City Council voted Thursday night to move forward with the Mustang Creek Project, a mostly residential development in the city's extraterritorial jurisdiction, or ETJ.

City Manager Odis Jones now has the authorization to negotiate with Hutto 1660, the developers leading the project.

The Mustang Creek Project is in the Packsaddle Tracts, a piece of land that is currently undergoing a voluntary annexation process. The Packsaddle Tracts annexation process requires a second public hearing as well as preliminary and final plat design approval, per Hutto Assistant City Manager Helen Ramirez.

As part of any potential development agreement, Hutto 1660 will construct a wastewater lift station and provide a sewer line for a future Hutto ISD site near the development, according to city documents. Under the proposed scope of the development agreement, Hutto 1660 must also construct and improve necessary roadways.

In return, the city may reimburse the developer up to $2 million from reimbursement on half the wastewater fees on the site.

The 169-acre Mustang Creek Project will primarily serve as a residential development, though documents show approximately 4 acres of land are earmarked for potential commercial use.

Twelve acres of development will additionally be set aside for Hutto Bible Church, which is being relocated due to the Co-Op District development currently under construction.