On Aug. 26, The Woodlands Township and the city of Houston are scheduled to consider an amendment to their 2007 Regional Participation Agreement that would permanently eliminate the possibility of Houston annexing The Woodlands Township and provide for $50 million in payments to Houston by 2030, according to agendas posted Aug. 19.
The Woodlands Township released a statement via Chair Brad Bailey explaining that the amendment would end the long-term Regional Participation Fund payment structure between the entities, providing for a total of about $27.4 million in payments from The Woodlands Township to the city over the next three years as well as releasing restrictions on the $22.6 million currently in the RPF to make those funds available to the city of Houston.
City of Houston materials show the payment schedule as:
- $22.63 million by Dec. 31 this year
- $9 million by the end of 2027
- $9 million by the end of 2028
- $9.37 million final payment by Dec. 31, 2029
Following this, in 2030, the one-sixteenth of 1% sales tax revenues that The Woodlands had previously allocated to the fund would remain with The Woodlands for township needs, according to the statement.
The proposed third amendment to the agreement to the RPA was posted on Aug. 19 as an item on the city of Houston agenda for Aug. 26, with The Woodlands following up by announcing a special meeting at 4 p.m. Aug. 26 to discuss the same topic.
The details
According to details posted on the city of Houston meeting agenda, the Regional Participation Fund is described as intended to "support mutually beneficial regional projects and address annexation-related matters."
The proposed third amendment would restructure the relationship between Houston and The Woodlands by:
- Making changes related to money in the fund
- Confirming there are no regional participation projects pending
- Ending certain city of Houston obligations
According to the amendment, if approved, the township will send funds from the RPF to the city of Houston, and the city will affirm that it will not annex The Woodlands unless certain conditions are met.
The backstory
According to information from The Woodlands Township, in 2007 it entered into contractual RPAs with the cities of Houston and Conroe to prevent either city from annexing any part of the township for 50 years, or until 2057. Portions of the township are within the extraterritorial jurisdiction of both cities. One provision of the RPA was that property within the ETJs of those cities would be released from the ETJs if The Woodlands were to incorporate into a city.
In 2021, The Woodlands Township voters rejected a measure to incorporate by a vote of 67% against.
According to information prepared by the township in 2021, the RPA provided for an initial $16 million contribution from The Woodlands toward "mutually beneficial public works projects such as regional park improvements, Texas Medical Center mobility and a Hardy Toll Road extension," and it also included dedication of an ongoing one-sixteenth of 1% of sales tax in The Woodlands to go toward future regional public works projects "of mutual benefit" in exchange for annexation being off the table for 50 years. The Woodlands Township's adopted 2025 budget included a payment of about $2.3 million for Houston in 2025 sales tax, according to budget materials.
The Woodlands meeting will take place at 4 p.m. Aug. 26 at the office of The Woodlands Township, 2801 Technology Forest Blvd., The Woodlands.
The city of Houston meets at 9 a.m. Aug. 26 at Houston City Hall, 901 Bagby St., Houston.
