During the July 3 City Council meeting, the annexation of the property was unanimously approved, following the approval of an updated development agreement on May 20.
Previous iterations of the development resulted in several legal challenges between the previous developer and the city. With approval of a new development agreement, the updated project will feature larger lots, fewer buildings and additional incentives for the construction of Ammann Road near the property.
City Manager Scott Huizenga said the amended development agreement reduces the originally planned 645 homes to 278 custom lots. In the original development agreement from 2013, homes were on lots averaging around half an acre, while the new lots will have one-acre minimums.
The conditions
Before July 3, the development was within the city’s extraterritorial jurisdiction, or ETJ, requiring the annexation and rezoning of the property before development could begin.
The development also acts as the city’s first Public Improvement District, or PID, which is a voluntary tax on the residents of the developed community to support construction costs.
This system allows the city to sign off on bonds for the development, which will be paid by the developers through PID revenue. Huizenga said the developer is proposing up to $60 million
in onsite infrastructure. The city will not be responsible for any bonds or debt accrued by the developer.
“The city is required to authorize the issuance of bonds, but the city is not required to pay the bonds,” Huizenga said.
Also of note
Through 2024 bond funds approved by voters, the city is working on the Ammann Road reconstruction from Ralph Fair Road to the Kendall County Line.
The planned project would include the expansion of two 11-foot-wide lanes and two paved shoulders.
Ammann Road was identified as a thoroughfare in need of reconstruction due to the pavement condition. While the road project will not add new lanes, the expansion will widen the road to reduce narrow sections.
Grant Watanabe, director of public works and engineering services, said the Ammann Road project is the largest bond project and costs around $6 million to complete. Construction is expected to begin in late 2026, occurring simultaneously with the residential development. Engineering services for the road project were approved by city council during the Feb. 6 Meeting.
Rather than have the southern sharp curve near Rolling Acres Trail, the road will cut through a small portion of the development property to provide a smoother corner.
“The property owner is dedicating the right of way for the city to soften that curve, and they’re also contributing to our full Ammann Road construction project,” Huizenga said.
What they’re saying
Fair Oaks Ranch Mayor Greg Maxton, during a May press conference, said nobody wants new development in the city, but Texas is a property rights state that allows property owners to sell to any party. The new developer has proposed a project that better aligns with the values of Fair Oaks Ranch, Maxton said.
During the approval of the development agreement on May 20, Maxton said the development fits the character of the city. While development cannot be stopped, the agreement allows for responsible city growth.
Throughout the process, all Fair Oaks Ranch City Council members have unanimously supported the updated development agreement and annexation of the property. City council will consider the platting of the property at a future meeting.
“We wanted something that was complementary to the future of Fair Oaks Ranch,” Maxton said. “I think that’s what has really been a blessing in the formation of this development agreement.”
Public input
During a June 19 public hearing, Fair Oaks Ranch resident RW Simpson opposed the annexation of the development due to concerns about providing water to the planned homes.
“Proceeding with a large-scale development during this critical time is not only irresponsible but dangerous for the long-term sustainability of our community and natural resources,” Simpson said.
According to the city water and wastewater plans, projections were to add the 645 homes to the city water system. Under the reduced development plan, the city will provide water to fewer homes than originally forecasted, leading to a reduction in anticipated water use.
With the reduction, city staff and leaders feel confident that the city is positioned to provide adequate water services to the area.
The first elevated water storage facility is also underway, allowing additional water resources from the Guadalupe-Blanco River Authority upon completion.
Fair Oaks Ranch will not be responsible for providing wastewater services to the development; instead, being served through septic systems.
Aside from water concerns, Rene Gallegos, president of the Fair Oaks Ranch Homeowners Association, encouraged a partnership between the developer and the HOA to ensure the safety of residents.
