HUTTO — The developer formerly tapped to develop Cottonwood Properties for the Hutto Economic Development Corp. is seeking a $300 million legal judgment against the EDC, Mayor Mike Snyder, real estate investment company Terra Halona LLC and its president Joel Scott.
The suit is just the latest legal imbroglio to plague the 250-acre site on U.S. 79.
Midway Development Group has lodged claims of bribery, civil conspiracy and breach of contract and is asking for a jury trial.
The lawsuit was filed Wednesday in the 334th Civil District Court in Houston by Mikal Watts of Watts Law Firm LLP in Austin.
Midway is based in Houston.
The developer is asking for more than $50 million in actual damages and punitive damages of $250 million.
The petition seeks the punitive damages based on a claim Snyder did not observe his oath of office and claims he sought personal financial gain.
No comment was available from Hutto officials or Snyder at press time.
Any monies that may result from the suit “should be assessed against (Snyder) and his co-conspirators. … assigned to the citizens of Hutto to be used for parks and recreation projects,” the petition reads.
The claim against Snyder references the unofficial involvement of Terra Halona when the EDC solicited bids for a master developer in 2023, according to the lawsuit.
Midway officials in the petition say they were approached by Terra Halona representatives with a partnership proposal to develop Cottonwood Properties before the EDC sought bids.
No contract was signed. Midway was then invited by Economic Director Cheney Gamboa, who was familiar with the company, to participate in the formal bidding process. The lawsuit claims Terra Halona approached Midway with the partnership offer based on their “friendship” with city officials, and during the bidding process Terra Halona indicated they were in contact with Snyder and discussing the bid recipients.
Terra Halona was not part of Midway’s bid package and had no contract with Midway, but the lawsuit claims that after Midway was awarded the project in 2024, Terra Halona asked to be compensated.
On Oct. 8, 2025, the EDC voted to terminate the contract with Midway.
Snyder said at that time he voted to end the relationship with Midway partly because when the contract was signed Midway was working with another group called “Terramark” and that relationship has since ended.
He said he did not want Hutto to be in the middle of two developers suing each other.
Midway’s request for more than $50 million is to cover out-of-pocket expenses, labor costs, lost profits and attorney fees.
This is not the first time the development has been at the center of a lawsuit. Cottonwood Properties has been plagued with setbacks.
In 2019, the land 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.
The project fell through and Legacy sued the city for $4 million in 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 was dismissed by a Williamson County judge and upheld by the Texas Seventh Court of Appeals.
In 2023 the EDC bought the land back for $15 million to stop the accrual of interest on the Preston Hollow Capital loan and release the liens.
A settlement was reached between the city and Wolverine in July 2025.
Cottonwood Properties is once again at the center of a legal battle with a new lawsuit filed Feb. 18 that seeks $300 million in damages from Hutto officials. Courtesy of the Hutto Economic Development Corp
