The Leander City Council has denied amendments to the public utility district agreement for the Leander Springs project, a proposed $1 billion mixed-use development by Austin-based iLand Development Group. The unanimous vote delays progress on the 78-acre project, which centers around a planned 4-acre artificial lagoon.
iLand had sought to reduce the required number of apartments from 1,600 to 1,200 and requested changes to construction timelines. The developer also asked for removal of the date required for certificate of completion on the lagoon and sought to eliminate time requirements for hotel construction and delivery. Under existing agreements, the hotel must be completed by the end of 2028.
Another amendment would have removed the requirement that the lagoon be open to the public with discounted admission for Leander residents.
Water usage has been a key issue throughout discussions. The Texas Commission on Environmental Quality’s website shows that an entity tied to Leander Springs has applied for a permit to discharge up to an average of 1.4 million gallons of treated effluent and stormwater per day (https://www.tceq.texas.gov/). Leander Mayor Christine DeLisle has expressed ongoing concerns about water consumption related to the project.
A request in the PUD amendment also aimed to classify the lagoon as a “non-essential use” regarding water, meaning it would need to follow conservation measures.
The project has experienced additional setbacks since its announcement in 2020, including losing a $22 million city incentive package after seeking investment through the federal EB-5 program and facing $3 million in contractor liens (https://www.bizjournals.com/austin/news/2024/05/28/leander-springs-lagoon-hotel-apartment.html).
Following the 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 company also announced it had replaced Miami-based Crystal Lagoons with Austin-based VVater as its lagoon developer.
The site at FM 2243 and 183A frontage remains undeveloped as discussions continue over these issues.
