Councilman concerned about differing narratives
HUTTO — The CEO of Midway isn’t mincing words about his disappointment with the city after Hutto dismissed the developer from the Cottonwood Properties project.
The reaction follows a vote Oct. 8 by the Hutto Economic Development Corp to look for another development partner for the 250-acre tract, citing multiple issues with Midway.
Company Chairman and CEO Bradley Freels fired back with a widely distributed letter addressed to Mayor Mike Snyder on Oct. 15.
“Midway is deeply disappointed by our experience with the city of Hutto. In an environment where policymakers appear to rewrite rules for personal reasons, we feel it is our responsibility to clarify information that is misleading so the community can make informed decisions,” Freels wrote.
Cottonwood Properties is a 250-acre EDC-owned parcel on the north side of U.S. 79 spanning from CR 132 to Fritz Park.
Snyder, one of the council members who is on the EDC, explained on social media why he voted to oust Midway.
Snyder indicated one of his concerns involved the amount of time it took for the project to move forward.
“They have the ability to go as fast as the HEDC needs,” Economic Director Cheney Gamboa originally said when Midway was announced as the development partner in December 2023. “Midway invests so much in their robust planning process that once the plans are complete, the execution moves quickly.”
Freels said Midway’s application was formally approved by a city resolution in April 2024, so the company has been engaged with the city for about 18 months. He said one reason the development was not further along involved issues with the 132 and 79 intersection, which took 11 months to settle.
The city and the Texas Department of Transportation had planned an elevated intersection. Critics of the design argued it would have blocked visibility of the Cottonwood frontage, adversely impacting the potential to attract retail tenants.
In June, the city and Midway came to an agreement on the intersection design. Snyder said.
Midway submitted their first design plans for the development just over a month ago.
Another concern Snyder voiced was his initial understanding Midway would be working with a second development firm, then learning the firm was not working with Midway.
Freels countered that company was never part of the agreement.
The CEO had a few concerns of his own, adding the city has not adhered to a memorandum of understanding it signed with the developer, specifically regarding the establishment of a municipal management district and a tax increment reinvestment zone to help the developer recoup infrastructure costs.
The City Council voted against forming the MMD earlier this year because of the legalities of having an additional political subdivision within city limits, according to Snyder.
Freels also said Snyder had been directly contacting potential retail tenants, a violation of the memorandum of understanding.
Snyder said the memorandum of understanding expired in July, and his contacts with potential tenants afterwards.
Councilman Peter Gordon expressed concerns about what he said were significant differences between Snyder’s and Freels’ accounts.
“(It’s) important to note that most of the delays are the fault of the city, not Midway, due to our waffling of the intersection challenges at CR 132 and 79,” Gordon said. “Most concerning are the violations of the established MOU, where the mayor bypassed Midway and began directly contacting prospective tenants, causing confusion in the market and undoubtedly further delays in the project.”
Gordon spoke with Freels after reading the CEO’s letter.
“This is the third master developer the city has engaged with to help develop this property (the first two being Wolverine and Legacy for the Perfect Game project), with the first two developers ultimately suing the city. I certainly don’t want lawsuits to continue,” Gordon said.
Snyder said he has received several inquiries already from developers interested in working with the city on the Cottonwood Properties project.
“
“I certainly don’t want lawsuits to continue.”
— Councilman Peter Gordon
