Kyle City Council approved its fourth tax increment reinvestment zone with the Limestone Creek Development Agreement in a 5-2 vote, with Council Members Yvonne Flores-Cale and Parsley dissenting at its regular meeting March 7.

Originally, the TIRZ had only a residential component. According to the city’s bond council, Stephanie Leibe, revenues from the residential component will be used to buy down Public Improvement District assessments and pay for additional public improvement costs associated with residential developments that may not be PID eligible.

Council Member Miguel Zuniga motioned to amend the TIRZ to include a commercial component. In a 4-3 vote, Kyle City Council amended its fourth TIRZ to include a commercial component with Council Members Daniela Parsley, Ashlee Bradshaw and Bear Heiser dissenting.

Jack Petersen, FM 158’s vice president of operations and development, advocated for the land, also known as the “Coleman Property” during the TIRZ's public hearing, noting that the Limestone Creek development would divert stormwater onto the Coleman Property, which is illegal.

According to the Texas Water Code Chapter 11 Section 86, “No person may divert or impound the natural flow of surface waters in this state, or permit a diversion or impounding by him to continue, in a manner that damages the property of another by the overflow of the water diverted or impounded.”

“The plan that is being presented in the development agreement approves the illegal diversion of stormwater through Goforth Road. Per Exhibit C of the development agreement the stormwater pipeline will illegally hook up to our channel located in San Marcos’ ETJ. This is outside of the city of Kyle’s jurisdiction,” Petersen said.

“The developers (Meritage and Lennar) and the city of Kyle get to benefit from the illegal diversion of stormwater while FM 158 Land and the city of San Marcos are adversely impacted,” Petersen told Community Impact.

During his presentation, Petersen said Coleman’s property is already contractually obligated to provide stormwater storage for Alliance’s Project, contributing $10 million in constructing a stormwater channel. Petersen explained that FM 158’s pond footprint would need to triple in size in order to take on Limestone Creek’s drainage.

“This is not economically feasible, and no one has secured an easement from us to do this,” he said.

Petersen proposed a solution that would send the stormwater to the east along Waterstone’s southern boundary and into Clear Fork Creek, where it’s historically gone, for $1.4 million and asked council to update the development agreement to exclude the illegal diversion of stormwater through Goforth Road to avoid future litigation.

"I'm trying to work this out and be neighborly," FM 158's General Property Manager Rick Coleman told Community Impact.

The involved parties have since met to further discuss a solution.