Homebuilder MileStone Wants Hays Commons Annexed to Austin

A controversial Texas law meant to loosen city regulations is now at the heart of an unusual pivot as MileStone Community Builders pushes for stricter oversight in Austin.

The shift in approach comes after the Austin-based developer employed a new Texas law to de-annex 498 acres from the tiny city of Hays for its proposed Hays Commons development, at the corner of FM-1626 and SH-45, the Austin Business Journal reported. Now the developer wants the property to be annexed to the city of Austin in an effort to navigate environmental opposition.

The $500 million Hays Commons project would include 700 homes, 75,000 square feet of commercial space and a 160-acre conservation area.

Under Texas’ de-annexation law, MileStone, led by president and CEO Garrett Martin, was able to remove the development site from Hays’ extraterritorial jurisdiction and proceed with the development under less restrictive county regulations.

However, after months of discussions and mounting pressure from residents and environmental stakeholders, the developer is pursuing annexation into Austin, citing the city’s more robust regulatory framework as a better means of addressing environmental concerns, especially those related to the Edwards Aquifer.

The key to annexation is a municipal utility district consent agreement, which would give Austin control over water and wastewater services and regulatory oversight of the project.

“On our side, we get utility service, a water and wastewater agreement out of the arrangement, and on the city side, they get all of the land use regulations, all the environmental protections,” Martin said.

However, environmental advocates are wary. Mike Clifford, technical director for the Greater Edwards Aquifer Alliance, criticized the project’s density and its potential impact on water quality in the aquifer.

“Extending services to Hays Commons would create an unprecedented high-density development over the Edwards Aquifer Recharge Zone, encourage development that follows the installation of water and sewer lines, and put residents’ water quality at risk with non-point source pollution,” Clifford said.

While environmental concerns loom large, the development’s annexation proposal will soon be considered by Austin’s Planning Commission, with the City Council poised to make a final decision. If annexation is rejected, MileStone could proceed with the project under county standards, which could be less protective of the environment.

— Andrew Terrell