After lenders Good Bull Capital and Jet Lending foreclosed on assets previously held by Friendswood-based developer JMK5 Holdings, they took over the stalled 148-acre property and are now proposing to build a new subdivision, Falling Leaf Ranch, in Friendswood.
Luke Cheatham, founder, CEO and president of Good Bull Capital, presented a proposal for the subdivision to Friendswood City Council at its Oct. 5 meeting.
The details
The new plan proposed developing 148 acres along Wilderness Trail into 135 single-family luxury lots, a higher-density proposal than JMK5 Holdings’ earlier 44-lot layout.
Friendswood is more than 85% built out, according to previous reporting by Community Impact, and staff called the proposed neighborhood “the last development of its kind that gets built inside city limits.”
The developer is dedicating 7 acres of right-of-way to construct a key segment of Friendswood Parkway, which is expected to reduce significant traffic congestion anticipated by 2045, according to a Houston-Galveston Area Council traffic study.
Measuring the impact
Homes are projected to sell for between $1.1 million and $2 million, with lots starting around $375,000 to $400,000, project General Contractor Ryan Strickland said.
Good Bull Capital asked the city to issue a $27.6 million public improvement district bond to finance $21.8 million of the project’s construction and infrastructure costs.
Once all the homes are built out, the neighborhood is expected to annually generate $3 million in tax revenue for the city, Strickland said.
Breaking down environmental concerns
The property contains roughly 20 oil and gas wells, which were plugged between 1980 and 1997, according to city documents. The developer is negotiating with the Texas Railroad Commission and ExxonMobil to modify a 100-foot deed setback restriction currently affecting lot layouts.
Additionally, the land contains roughly 6 acres of salt contamination from oil drilling. Instead of capping the soil, the developer plans to excavate 10 to 15 feet of contaminated dirt and replace it with clean fill from excavating the neighborhood’s detention pond.
“This tract doesn't get cleaned up unless someone develops it, and we're prepared to be that party,” Good Bull Capital said in documents published by the city.
Council member Robert Griffon pushed back against the developer's proposal to replug abandoned wells, saying it could be risky.
“You don’t want to go around messing with a well that’s been plugged and abandoned correctly,” Griffon said.
Next steps
Once development agreements are in place, the project is expected to follow a 22-month timeline to the first lot closings, according to city documents.
City Council appointed council members Randy Hale and Michel Ross to a subcommittee to lead upcoming negotiations on the development and PID terms.
The subcommittee will also resolve whether, at the developer’s preference, any TIRZ funds will be involved or if the PID debt will stand alone.
