Buda Council approves changes to agreement

BUDA – Following approval of revised development agreement for The Colony at Cole Springs and an ordinance to establish Tax Increment Refinance Zone (TIRZ) Number 2 for The Colony at its Nov. 8 meeting, the Buda City Council met to discuss the proposed financing plan at a special meeting on Tuesday, Nov. 28.

According to a news release, the amended agreement establishes a location for the city’s newest elevated water storage tank. The site will be approximately 180 feet  by 180 feet in size. The elevation at the location that the developer is donating to the city is appropriate for the design of the tank. The site will be on the outside northwestern edge of the development on a city street. Future homes are planned on the same street adjacent to the site.

According to a Nov. 28 presentation by Elliot Jones, a representative for the developers, the proposed TIRZ consists of an approximately 168.88-acre tract of currently vacant and agricultural land located south of Old Black Colony Road and north of Cole Springs Road. The land, to be known as The Colony at Cole Springs, is expected to be developed as 496 single-family lots, a 2.6-acre amenity center and 33.1 acres of trails and open space. The Colony’s development team is comprised of Meritage Homes of Texas and M/I Homes of Austin.

TIRZs are used as forms of tax increment financing, which is an economic development tool to incentivize both development and redevelopment. The city is asked to reinvest some of the property taxes generated by the project back into the development to help fund infrastructure.

According to the presentation, the developers intend to add a major road, which will bisect the development, between Old Black Colony Road and Cole Springs Road, as well as making “significant” transportation improvements. The improvements are expected to include the following:

• Two lane bridge across Onion Creek;

• Extension of Cole Springs Road from the end of the bridge to the southern entrance into the development.

“The cost of the development has changed significantly since the pandemic,” Buda City Manager Micah Grau explained. “The TIRZ is going to help support the construction of a bridge over Onion Creek that the developers are constructing for the city. They are also realigning Old Black Colony Road to align with the current Bond project and the TIRZ will support the cost of the realignment project, as well.”

The Colony development is also governed by in-city Buda Municipal Utility District No. 1, which was authorized by the Buda City Council in 2020 and has the authority to issue tax exempt municipal bonds.

In addition to the transportation improvements, the development will finance improvements to utilities (water and wastewater) and parks.

According to Jones, the revenues of the MUD and TIRZ “should be sufficient” to finance a portion of the utilities, roads and parks necessary for the development.

The project construction costs are estimated at $75,183,749. Of the total, the MUD and TIRZ are expected to reimburse approximately $41,674,250, or 55.43%, to the developers.

The Colony at Cole Springs project is expected to break ground in early 2024.