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In January members of the San Antonio Planning Commission recommended to City Council that it deny consent for creation of a Municipal Utility District (MUD) to serve the Guajalote Ranch development in its plan to build a wastewater treatment plant. MUDs are used to finance infrastructure in new developments, with the district issuing bonds that are repaid by taxing residents in the district.
On January 22, a majority of Council members signaled they plan to oppose the creation of a district. TCEQ will make the final decision on approving the district, but since the site is within the city's extraterritorial jurisdiction the city must vote on whether or not to consent.
If Council denies consent or takes no action, the developer can then file a petition to negotiate with city entities, and if an agreement is not reached the developer could then ask TCEQ to approve the district without the city's consent. The Express-News reported that city staff were continuing to negotiate an agreement that if the MUD were approved by the city, additional conditions would apply. An existing agreement requires things like a very advanced level of treatment, a high level of operator certification, and setting aside 50% of the property as open space.
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