HUTTO – After years of legal battles and stalled development, a 250-acre site, north of US 79 east of Hutto, known as Cottonwood Properties, is back in the hands of the city and its Economic Development Corp. The EDC officially took ownership of the property March 6.
“The Cottonwood Properties have been on a long journey to this point, but we are thrilled to finally, and officially, acquire this land and truly make the most of it,” Director of Economic Development Bob Farley said. “The city and the EDC are mutually focused on responsible growth that improves quality of life and diversifies our tax base. This site is a key part of that mission.”
In 2019, the land was under contract with developer Legacy and was earmarked for an $800 million mixed-use sports tourism complex to be anchored by Perfect Game USA, a baseball scouting company.
The development quickly fell through, and Legacy sued the city for $4 million for breach of contract.
Meanwhile, Dallas finance company Preston Hollow Capital LLC lent the city $15 million on the land to revive development, and then in May 2020 claimed the city had defaulted on the loan and took legal steps for reimbursement.
In July 2022, the Legacy lawsuit was dismissed by a Williamson County judge and the Texas Seventh District Court of Appeals court.
On Feb. 6, of this year, the city council and the EDC approved an “under duress” purchase of the land for $15 million to stop the accrual of interest on the Preston Hollow Capital loan and release the liens.
The funds will come partially from a $6 million sales tax funding and refunding agreement between the city and the EDC. The EDC will take out a loan for the remaining $9 million.
According to a city press release, the EDC is actively re-engaging with interested developers. One of the potential opportunities in advanced talks includes a groceryanchored development. This would be the city’s second grocery store, and the only one north of US 79.
The city plans to present concepts for Cottonwood Properties to national developers and retail tenants at the International Council of Shopping Centers in Las Vegas in May.
