The Leander City Council has unanimously denied proposed amendments to the public utility district (PUD) agreement for the Leander Springs development, a $1 billion mixed-use project planned by Austin-based iLand Development Group. The decision further delays progress on the 78-acre site, which is centered around a 4-acre artificial lagoon.
The requested amendments included reducing the required number of apartments from 1,600 to 1,200 and removing specific deadlines for completing the lagoon and hotel components. The current PUD requires hotel completion by the end of 2028. Another proposed change would have eliminated the requirement that the lagoon be open to the public, though discounted admission for Leander residents had been offered.
Water usage remains a central issue in moving forward with the development. A permit application linked to the project seeks approval from the Texas Commission on Environmental Quality to discharge an average of 1.4 million gallons of treated effluent and stormwater daily. Concerns over water use have contributed to skepticism about the project among city officials, including Mayor Christine DeLisle.
In addition to water issues, iLand Development Group lost a $22 million city incentive package after using funding through the federal EB-5 program, which allows foreign investors and their families permanent resident status in exchange for investment in U.S. commercial enterprises (https://www.investor.gov/introduction-investing/investing-basics/glossary/eb-5-program). Since its announcement five years ago, Leander Springs has also faced $3 million in contractor liens.
Following an August 21 council meeting, iLand stated: “the company is eager to move forward with the project, and that the water management plan presented to the City Council and residents is robust.” The developer also confirmed it has replaced Miami-based Crystal Lagoons with Austin-based VVater as its lagoon developer.
Another amendment request sought designation of the lagoon as a “non-essential use” regarding water supply so it would be subject to conservation requirements.
The project site at FM 2243 and 183A frontage was intended as a major destination for Central Texas but continues to encounter regulatory and financial obstacles.
