Title
Approving a resolution approving the fourth amendment to the Carmel development agreement between the City of Pflugerville and Starlight Homes Texas LLC, Arroyo Cap IV-2, and LB Carmel LLC authorizing amendments to the original agreement, authorizing consent to an additional approximately 14.629 acres situated in the John Leisse Survey No 18, Abstract No. 496, Travis County, Texas into the Municipal Utility District No. 24, and approval of a Strategic Partnership Agreement, and authorizing the City Manager to execute the same.
Summary
In 2015, Municipal Utility District (MUD) No. 24 was created within the City of Pflugerville for the Carmel East Development through a Development Agreement that has since been amended several times. The proposed Fourth Amendment incorporates approximately 14.629 acres known as Carmel East Phase 5, recently acquired by the Developer, who is proposing to incorporate into MUD 24.
Project History for MUD 24
1. Original Adoption: October 13, 2015
2. First Amendment: June 8, 2017
3. Second Amendment: February 12, 2019
4. Third Amendment: January 25, 2022
Summary of Development Agreement Amendments
1. Consent to Additional Acreage in MUD 24: The developer is proposing to incorporate approximately 14.629 acres into MUD 24.
2. Melber Lane Bridge Contributions: The Developer will dedicate the necessary right-of-way for the City’s construction of the Melber Lane bridge and will contribute an additional $1,518,956 toward construction. This contribution must be made prior to approval of a Final Plat.
3. Strategic Partnership Agreement (SPA): A SPA is executed for all of MUD 24, allowing the City the ability to annex the district after 30 years should the city elect to do so.
4. Parkland Requirements: Parkland dedication for the Carmel East Ph. 5 will comply with the Unified Development Code in effect at the time of Preliminary Plan approval.
5. Term Extension: The original expiration date of October 13, 2030, is extended by five years to support full development of the added acreage. The updated expiration date is October 13, 2035.
The 14.629-acres proposed to be incorporated into MUD 24 is currently subject to a Chapter 43 Non-Annexation Development Agreement executed in 2016. Under the standards outlined in the proposed development agreement, this portion will remain in the City’s extraterritorial jurisdiction (ETJ) for 30 years, however, the Developer has executed a Strategic Partnership Agreement establishing terms for annexation after the 30-year period to provide that as an option to the city. This includes a bond provision intended to ensure District debt is reduced prior to annexation.
Bond Requirements (SPA Provision)
Section 8.04(a) is amended to include the following restrictions for all District bond issuances:
• A maximum maturity of 25 years from the date of issuance for any series of bonds.
• No bonds may be issued more than 15 years after the date of the District’s first bond issuance without the City’s written consent.
Utilities
This property is located within the City’s wastewater service area and is proposed to connect to a 24-inch force main, which ties into a 54-inch gravity wastewater line conveying flows to the Wilbarger Wastewater Treatment Plant. These improvements are currently under construction. The agreement provides flexibility for the developer, at their expense, to utilize a pump-and-haul contract on an interim basis if needed. This property is located within Manville’s water service area.
Comprehensive Plan Compliance
The proposed Carmel East Phase 5 is located within the Traditional Neighborhood future land use designation of the Aspire Pflugerville 2040 Comprehensive Plan. This designation supports a range of single-family housing types and is intended primarily for residential development, with limited, small-scale commercial uses allowed when designed to serve nearby residents. The City’s Mobility Master Plan identifies this property for the extension of Melber Lane, a minor arterial to be constructed within a 100-foot right-of-way. The proposed development agreement amendment is consistent with and supports the goals of both the Aspire Pflugerville 2040 Comprehensive Plan and the Mobility Master Plan.
This item is supported by the Residential and Node Development pillar of the Strategic Plan. This item also is further supported by the Mobility Master Plan with the extension of Melber Lane, as well as supports long-term annexation goals outlined for the city.
Prior City Council Action
Original Adoption: October 13, 2015
First Amendment: June 8, 2017
Second Amendment: February 12, 2019
Third Amendment: January 25, 2022
Deadline for City Council Action
Staff is requesting approval of the agreements at the December 9, 2025 meeting.
Funding Expected: Revenue X Expenditure __ N/A __
Budgeted Item: Yes __ No X N/A __
Budget Source: NA
Amount: NA
1295 Form Required? Yes __ No X
Legal Review Required: N/A __ Required __ Date Completed: October 30, 2025
Supporting documents attached:
First Amendment to Consent Agreement
Fourth Amendment to Development Agreement
Location Map
Resolution
Recommended Action
Staff is recommending approval of a resolution approving the fourth amendment to the Carmel development agreement between the City of Pflugerville and Starlight Homes Texas LLC, Arroyo Cap IV-2, and LB Carmel LLC authorizing amendments to the original agreement, authorizing consent to an additional approximately 14.629 acres situated in the John Leisse Survey No 18, Abstract No. 496, Travis County, Texas into the Municipal Utility District No. 24, and approval of a Strategic Partnership Agreement, and authorizing the City Manager to execute the same.