Tensions have risen in Hutto following the collapse of a proposed $250 million mixed-use development for the city’s 250-acre Cottonwood tract. The Houston-based developer Midway had been negotiating with Hutto for nearly two years to transform the site at Highway 79 and County Road 132 into a destination featuring retail, residential, office space, and parkland.
The deal ended after the Hutto Economic Development Corporation (EDC) voted unanimously this month to halt discussions with Midway. In response, Midway CEO and Chairman Bradley Freels criticized city officials for what he described as inconsistent requirements and insufficient transparency. “Midway fully embraced Hutto’s Vision for the Cottonwood development, aiming to create an urban, walkable environment that caters to the existing suburban community while transitioning to higher land density and attracting a diverse workforce,” Freels stated in a letter addressed to city officials.
Midway was initially selected in December 2023 to lead redevelopment efforts on the property, which was intended as a signature project comparable to Austin’s Mueller district. However, disputes emerged over project delays, financial terms, and claims of interference from local leaders.
Mayor Mike Snyder, who also serves on the EDC board, said negotiations were terminated due to what he called “a lack of progress.” In a Facebook post, Snyder accused Midway of threatening legal action through the Texas Attorney General’s office and questioned their business partnerships. “When a developer comes into Hutto, they need to do what’s right by Hutto,” Snyder wrote.
Freels argued that obstacles created by the city hindered progress on the project. He cited delays caused by a planned highway overpass that stalled work for nearly one year and pushed back utility access until at least 2028. Freels also alleged that Mayor Snyder personally contacted key potential tenants during negotiations—actions Freels claimed violated an existing memorandum of understanding between Midway and the city.
The Cottonwood tract has been central in past redevelopment attempts; it was previously considered as headquarters for baseball scouting company Perfect Game before those plans fell through. Midway had outlined a six-phase buildout over several decades for this fast-growing suburb northeast of Austin.
Freels further contended that Hutto did not follow through on its commitment to consider creating a municipal management district aimed at funding infrastructure improvements.
With negotiations now concluded with Midway, EDC Chair Don Carlson said Hutto will restart its request-for-proposal process focusing on retail and commercial projects aligned with local residents’ needs.
The failed deal leaves development plans uncertain as Hutto seeks ways to address rapid population growth amid economic expansion linked to major nearby investments such as Samsung’s $17 billion chip plant in Taylor.
