Consider and take action on Resolution No. 2025-109, approving the assignment of the Cost Share Agreement for Water Plant Improvements related to the Lakeside Bayou Subdivision upon certain terms and conditions.  

Lakeside Bayou, LLC, the City of Texas City, and Galveston County Municipal Utility District No. 53 entered into a certain Cost Sharing Agreement for Water Plant Improvements dated March 20, 2024. Lakeside Bayou, LLC is currently under contract with Land Strategies Management, LLC dba Starwood Land to purchase and sell the entirety of the Lakeside Bayou development project to a To Be Formed Single Purpose Entity affiliate of Starwood Land to move forward with construction of the project on an expedited timeline.  Starwood Land anticipates breaking ground on Phase I of the development in January 2026 with Phase I development to be completed by November 2026.  Phase I consists of Sections 1, 3 and 4 of the approved master plan and will develop approximately 231 lots.  

The City and Lakeside Bayou LLC entered into the Cost Share Agreement because anticipated growth within the service area supports having certain components of the water system improvements, being specifially the water well and the ground storage tank, designed and constructed for full built out capacity which exceeds the capcity required for the development of the Lakeside Bayou Subdivision.  The cost share agreement facilitates the build of the excess capacity.  

To facilitate the transaction of the sale of the Lakeside Bayou Subdivision project to the TBF-SPE affiliate of Starwood Land, Lakeside Bayou LLC and Starwood Land request approval of the assignment of the Cost Share Agreement.  Section 4.04 of the Cost Share Agreement allows assignment upon written consent by the City, which consent may be withheld, delayed or conditioned in the sole and absolute discretion of the City.  

 

Staff recommend approval of Resolution NO. 2025-109, authorizing execution of an assignment of the Cost Share Agreement upon acceptable terms and conditions and subject to the closing of the purchase and sale agreement between Lakeside Bayou, LLC and the TBF-SPE of Starwood Land.