The city's Planning and Zoning Commission board and ARKK Engineers, who serve as the city of Katy's engineering firm, recommended approving the proposed changes to the development, according to documents from the the P&Z. The rezoning would have expanded the development to 300 acres.
But at a Nov. 14 City Council meeting, Brett Walker, president of land investment company Parkside Capital, said the halted progress has been caused by interest rates that have doubled in the last six months and construction costs that are at an all-time high.
The high costs within the housing market “have caused the velocity of sales to fall off a cliff,” according to Walker. He said when this happens, homebuilders must shrink the size of the lot sections, which could change the acreage adjustment.
“We just foresaw potential issues with those builders and us having to come back to council after amendment after amendment to the PDD—that is not something we wanted to do,” Walker said. “So we decided the best course of action was to slow down, get this right on the front end with the builders and then come to City Council with a plan we know we can execute.”
A Sept. 13 planning report from the Planning and Zoning Commission outlines a development schedule for the PDD. Katy Court is set to be completed in two phases, separated by commercial and residential development.
The land is near the southwest intersection of Clay Road and Katy Hockley Cut-Off Road. According to city planning documents, the location lends itself to a strong commercial corridor, supported by proposed and existing residential areas.
Katy Court is a planned mixed-use community for residential, restricted commercial and recreational uses. The proposed concept plan incorporates commercial development along Clay Road and residential development along the southern and western portions of the tract, with detention lakes between the two components.
Residential construction was initiated in June 2021 and is scheduled to continue through 2025. Approximately 194 residential lots have been constructed so far, per the planning report. The proposed rezoning would allow for an additional 412 residential lots and accommodate around 55 acres of detention.
However, approval is paused on the commercial phase, or Phase 2. Construction is expected to begin in 2023 and be completed by 2025. Final phasing and timing will be driven by market and economic conditions, according to the Sept. 13 planning documents.
Walker said he plans for the adjusted size of Katy Court to be finalized in December and prepared for city officials to vote on by the Dec. 12 City Council meeting.
