Drivers who pass a Shenandoah city marker on I-45 see an outdated sign that announces the city's population as 2,134. The burgeoning city needs a new sign. In 2013, the population of Shenandoah was 2,600, and by 2018, Shenandoah is expected to have 5,500 residents.

Shenandoah's physical growth is complete, however, because the city's limits are mapped, zoned and established. This includes the extraterritorial jurisdictions, areas outside of the city's defined boundaries that can be annexed by the city for various purposes.

"There's no more room that we can grow," City Administrator Greg Smith said. "Because Conroe, the city of Houston and Oak Ridge North are all surrounding, and in this area all of the boundaries are set."

What that leaves is development potential within the city's already established limits, such as residential and economic projects, which are occurring at a rapid pace. Smith said the city has prepared itself for its current growth.

"We are in great shape when it comes to our infrastructure," he said.

Residential development

There is a projected population increase in the number of families moving to Shenandoah, Smith said, and the city is preparing for upcoming residential developments, including 240 houses and an apartment complex with 350 units.

Four single-family housing projects are underway, which include developments by three builders with four subdivisions to construct.

Gracepoint Homes has two projects, which include a total of 106 houses, breaking ground in the city, Marion and Lily. Smith said the infrastructure is complete for Gracepoint Homes to begin construction.

"Streets, drainage, water, [and] dry utilities are finishing up, and [builders] will start construction in 2015," he said.

Brooks Valls, Gracepoint Homes vice president of sales and marketing, said Shenandoah was picked for Gracepoint's two developments because it is ideally situated.

"Marion and Lily offer fast access to I-45 and locations like the ExxonMobil campus and are just minutes from shopping and entertainment in The Woodlands," Valls said.

Boulevard Green by Pelican Builders comprises of 92 lots located at Green Boulevard and Vision Park Boulevard. Pelican Builders completed the streets, water and sewer infrastructure in late 2014, Smith said.

Pelican Builders Vice President Derek Darnell said his company chose Shenandoah because it is close to The Woodlands.

"There's a lot of demand for people to move to be as close to The Woodlands as possible," he said. "There happened to be a lot of land available, and of course the city officials were great to work with, and it all came together."

Darnell said that by February the main entrance to the community will be built and the subdivision will begin to take shape.

"Reserve at Grogan's Mill" by David Weekley Homes is at Grogan's Mill Road and Sonoma Court. Smith said DWH will likely complete the development in 2015.

In early 2015, Buckhead Investment Partners will begin building Woodlofts Apartments at David Vetter Boulevard and I-45. Smith said the increased residential development in Shenandoah will have a far-reaching effect on the city's economy.

"Not only is [residential development] helping the city directly with the value of the housing, it will also help the city exponentially because those families will be shopping in Shenandoah's stores, eating in Shenandoah restaurants and investing in the overall community," Smith said.

Transportation

Shenandoah will be keeping an eye on the results of the potential Montgomery County road bond referendum proposed for May. Two local projects hinge on the passage of the bond.

One transportation project includes the widening of Tamina Road from I-45 to David Memorial Drive and from David Memorial Drive eastward. The eastward plan includes an overpass over the Union Pacific rail line to alleviate traffic, Smith said.

In addition, the city is looking to extend David Memorial Drive to Hwy. 242. Smith said the extension would allow drivers to enter Shenandoah off of Hwy. 242 without having to get onto I-45, easing congestion on I-45 and the I-45 feeder road. The city is now working to purchase the land on which the extension will be built.

Smith said a third transportation project slated for Shenandoah is the installation of new signal lights on the Research Forest Drive corridor in Shenandoah, at the two intersections at the I-45 feeder road—north and southbound. The new lights are not dependent on the bond.

Economic growth

Four hotels and one restaurant have already broken ground or will begin construction shortly in Shenandoah, Smith said.

Holiday Inn Hotel and Suites, located at 19333 David Memorial Drive, broke ground Dec. 12. The 153-room hotel is expected to be complete in January 2016.

Staybridge Suites, located at 19359 David Memorial Drive, will begin construction in February while Cambria Inn and Suites in the 1900 block of David Memorial Drive is anticipated to begin construction in May. Home2 Suites at 223 David Vetter Blvd. will be fully developed in 2015.

Smith said Shenandoah is prime real estate for hotel development because of the city's low price relative to The Woodlands.

"It is less expensive to operate a business in Shenandoah," Smith said. "Our land cost is less expensive than The Woodlands. We don't have any special district taxes—MUD [municipal utility district] taxes, road utility taxes— so that goes into being a lower cost to develop in Shenandoah as well as the water rates which are going to be even a bigger issue. Hotels are heavy water users."

Smith said other hotels and restaurants are in the process of being developed as well.

"There are several [projects] planned but we are unable to announce those due to leases and to [contracts] not being signed," Smith said.