Zoning for the property was also contested by the planning and zoning commission, which voted 5-1 in favor of it during a Feb. 9 meeting.
According to City Manager Scott Sellers, property owners Clayton Properties Group and Brohn Homes worked with Hays CISD to address most of the district's concerns before the Feb. 23 vote.
"I think there's still one remaining concern that they're still working on, which is the fence material and the height that's going to go between the two [properties]," Sellers told City Council. "All the other issues have been resolved."
Sellers went on to tell council members that Hays CISD was pushing the developer to use higher-quality materials for its fencing.
City Council briefly weighed postponing the first vote of two votes on the zoning but chose to revisit any lingering issues before the final vote to rezone, which is scheduled for the March 2 council meeting.
There were no public comments for the rezoning ordinance.
The land, which was annexed by the city earlier this year, could hold up to 5 1/2 houses on every acre under the new zoning. Homes would be required to be a minimum of 1,000 square feet and have lots of at least 5,540 square feet.
City documents said road access to the development will be through Phase 2 of the Casetta Ranch development, which neighbors it and shares the same zoning. Residents will also be able to enter the future property from Gristmill Road.
Another undeveloped lot owned by the Walton Group, which is zoned R-3-1 for five to 12 units per buildable acre, also neighbors the property. The site is also bordered by agricultural land outside of Kyle city limits.
Water and wastewater utilities would be provided through the city.