Hutto seeks a new development partner
HUTTO – After years of promises and legal battles, the planned Cottonwood Properties development is no closer to fruition.
The Hutto Economic Development Corp.’s board Oct. 8 decided to end a relationship with its current development partner in the venture and planned to search for a new one.
“The HEDC carefully reviewed the Cottonwood Properties project and decided it’s the right time to explore new development opportunities. Our priority is making decisions that benefit the community and support Hutto’s growth,” said Chairman Don Carlson.
Midway was chosen to develop the 250-acre property in 2023, and the EDC was in discussions with an investor to bring in a grocery- anchored development.
That project never came through.
Mayor Mike Snyder said he voted to end the relationship with Midway partly because when the contract was signed, Midway was working with another agency and that has since concluded.
“In my opinion, I don’t want to enter into agreements with developers unless we are 100% sure of who we are doing business with,” Snyder posted on social media Oct. 9.
Snyder is one of four council members who make up the sixmember EDC.
The mayor said the EDC spends $3,000 in costs on the Cottonwood Properties land every day.
Cottonwood Properties is in a prime location on U.S. 79, but it has been plagued with setbacks. In 2019, the site was under contract with developer Legacy and was earmarked for an $800 million mixed-use sports tourism complex to be anchored by Perfect Game USA, a baseball scouting company.
According to various reports, the project fell through and Legacy sued the city for $4 million contending a breach of contract. Hutto sued Wolverine, the developer hired for the Perfect Game project for $1 million in damages. Wolverine countersued for damages and lost profits.
Meanwhile, Dallas finance company Preston Hollow Capital LLC lent the city $15 million on the land to revive development, and then in May 2020 claimed the city had defaulted on the loan and took legal steps for reimbursement.
In July 2022, the Legacy lawsuit dismissed by a Williamson County judge was upheld by the Texas Seventh District Court of Appeals.
In 2023, the EDC rebought the land for $15 million to stop the accrual of interest on the Preston Hollow Capital loan and release the liens. In July of this year, Hutto and Wolverine reached an “amicable settlement,” officials said.
With all the lawsuits settled, the city is now sitting on a large amount of prime acreage, and the EDC has a newfound impetus to find a partner who can make things happen for Cottonwood Properties, officials said.
According to an Oct. 10 press release from the EDC, the quasigovernmental agency “aims to keep momentum going on this key property while staying focused on transparency, fiscal responsibility and long-term success for Hutto.”
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“Our priority is making decisions that benefit the community.”
— Don Carlson, Hutto EDC
