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			(8)(d)
CITY COMMISSION REGULAR MTG
Meeting Date: 08/06/2025   Consider and take action on a Development Agreement with Red Egret LLC. Submitted For: Curt Kelly Submitted By: Curt Kelly, Transportation and Planning Department: Transportation and Planning
Information
ACTION REQUEST
Consider and take action on a Development Agreement with Red Egret LLC as a condition for the approval of the zoning change from District H Heavy Industrial to District S P Site Plan for construction and operation of a BESS project on the 38.653 acre site located in an area south of the GCWA canal, north of Moses Bayou, east of South Humble Camp Rd., and west of property owned by the Galveston Bay Area Foundation
BACKGROUND (Brief Summary)
The Development Agreement memorializes the conditions recommended by the Planning Board and the Zoning Commission for approval of the requested zoning change from District H Heavy Industrial to District SP Site Plan for the construction and operation of a Battery Energy Storage System project.  The applicant, Red Egret, LLC, requests a Zoning change of a 38.653-acre site from District “H” (Heavy Industrial) to District “S-P” (Site Plan) for development and operation of a battery electric storage system (BESS) utilizing lithium-ion battery technology. TNMP, as the current owner of the property, is a co-applicant for the zoning change. The requested actions are cross conditioned upon approval of all pending applications. The applicant, Red Egret LLC, states an intent to build, own and operate a proposed BESS project at the subject location. The project proposes to develop 149 lithium-ion containers and 75 medium voltage transformer skids with room for additional future containers to maintain full project capacity of 300 MW, 600 MWh over the life of the project at the site. The applicant seeks to begin construction in 2025 with the project to be online and fully operational in 2026. The proposed project will encompass 38.653 acres of vacant property which is landlocked with no public access and no access to public water or sewer. The location is in an area south of the GCWA canal, north of Moses Bayou, east of South Humble Camp Rd., and west of property owned by the Galveston Bay Area Foundation. The applicant states the site is 2,000 feet from the nearest occupied structure. The property is currently zoned District “H” (Heavy Industrial). The applicant proposes to access the site through private easements. The applicant has a lease and purchase agreement with TNMP with the intent to purchase the project site once the project begins commercial operations. TNMP Freeway Park Substation – The applicant states it has an interconnect agreement in place with TNMP for the Freeway Park Substation located at 25th Ave N and SH 3. The Freeway Park Substation was recently rebuilt by TNMP and functions to convert high-voltage electricity supplied to the substation by long-distance transmission lines to lower voltage which is then distributed from the substation to nearby homes and businesses. TNMP will connect to the BESS project through infrastructure upgrades within TNMP’s existing land rights. At its regular meeting on July 7, 2025, the Planning Board reviewed and approved a Detailed Site Plan for the requested rezoning upon certain conditions to be memorialized in a Development Agreement approved by the City Commission. The Zoning Commission held a public hearing upon notice to adjacent property owners on July 15, 2025. The Notice of the Zoning Commission Hearing was mailed to 4 property owners within 200 ft. No letters of opposition were received and no one appeared at the hearing held on July 15, 2025 to oppose the zoning change. After conducting the public hearing and having all questions answered by the Applicant the Zoning Commission voted 4-0 to recommend approval of the zoning change from District H Heavy Industrial to District SP Site Plan subject to the Detail Site Plan approved and the conditions recommend by the Planning Board. The Applicant agreed with the conditions and has provided a Development Agreement for approval by the City Commission.
RECOMMENDATION
Staff recommends approval of the Development Agreement with Red Egret LLC as a condition for the approval of the zoning changed from District H Heavy Industrial to District S P Site Plan for the 38.653 acre site located in an area south of the GCWA canal, north of Moses Bayou, east of South Humble Camp Rd., and west of property owned by the Galveston Bay Area Foundation.
Fiscal Impact
Attachments FINAL Development Agreement Resolution Vicinity Map Zoning Commission - Staff Report Exhibits Legal Description & Final Plat Planning Board - Staff Report Planning Board - Minutes 7.7.25 DRAFT Zoning Commission Minutes 7.15.2025- 7.15.2025

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