Waco City Council OKs $130M for Riverway in split vote

The measure of a financing agreement of Zone no. 4 of financing the tax increase requires a second reading and a second approval vote by the council. On first reading Tuesday, the council voted 3-2 in favor of granting the funding, with council members Andrea Barefield and Alice Rodriguez voting against. Council member Josh Borderud did not vote or participate in the discussion after filing an affidavit of substantial interest and said he did so because he, he and his wife work at Baylor University, which owns property in the TIF zones.

Barefield said he is not opposed to the Riverway, but he is opposed to awarding such a large amount of funding without first understanding how the funding would benefit Waco. Barefield said he believes the council did not have enough time to fully consider the proposal and asked that the vote be pushed back.

Barefield also said Waco needs housing at all levels, which Rodriguez agreed with. Rodriguez also said she is undecided about the funding since the development could benefit downtown Waco, but wants more time to consider the proposal.

Caldwell Companies, the Houston-based real estate firm planning the development, first announced in 2020 that it hoped to build in Waco, and city staff first became involved in 2022. Aside from a permit to excavate at the site, which did not include details on the broader proposal, the first town hall presentation at Riverway was April 2.

The project will bring 1,887 homes to a 521-acre property along the Brazos River near the intersection of Lake Shore Drive and Martin Luther King Jr. boulevard Homes in the community would range from larger estates to moderate-density sections and some apartments, with space for commercial and retail shops around the edges of the property.

Caldwell Companies has developed many master-planned communities in the Houston area. Caldwell initially asked the city for $93 million in TIF funding to build public infrastructure, including roads, water and wastewater lines and public parks and trails. That number was increased to $130 million, primarily to account for inflation, as the project is not expected to be fully completed for 15 years.

Caldwell's annual TIF payments would be based on a percentage of the property tax revenue the development generates each year. Estimates from last month's TIF board meeting put the first repayments in 2026 at about $233,000, which would increase by a few hundred thousand dollars each year before reaching about $8.6 million for the payment end in 2050. The approval of $130 million represents a cap on the total value. of payments, not a guarantee of financing.

Mayor Dillon Meek said he is in favor of granting the funding because of the economic benefit the Riverway could bring to downtown Waco. Meek said with the Riverway only about two miles from downtown, the development would bring families with disposable income closer to the district, which would help grow businesses in the area.

In response to a resident who spoke against the funding and called it “too sweet a deal” during Tuesday's meeting, Meek said the amount of funding Riverway would receive is based on tax revenue generated each year, that is, it is based on performance. , not a brochure. Although the $130 million is designated to pay Riverway developers over a period of about 20 years, the amount paid each year depends on the tax revenue generated. The city would retain about 30% of the property tax revenue generated each year.

In addition to Barefield and Rodriguez's opposition, Bosqueville ISD Superintendent James Skeeler said during the public comment period of Tuesday's hearing that he is concerned about the increased tuition Riverway could bring for the district of about 720 students. Riverway is located just inside Bosqueville's district boundaries, meaning any child in Riverway's 1,887 homes could attend the district's schools.

Skeeler said the number of students brought to the district by Riverway would exceed Bosqueville's capacity for growth. He said Bosqueville recently began a facility expansion that took up most of its link capacity. He said the expansion was necessary to prepare for projected enrollment growth at the time, but not enough to accommodate the growth Riverway would bring. Bosqueville last year approved an $18.8 million bond package to improve and expand school buildings, with plans to expand from 27 classrooms to 36 with room to add six more as enrollment grows, as well as closing corridors between separate high school buildings. At the time, the district expected its high school enrollment to grow from 380 to 550 over 20 years.

“The amount of students projected to increase in our district due to this development would far exceed our student capacity,” Skeeler said. “This would cause a financial burden on the district due to our limited bonding capacity.”

Skeeler said he is not opposed to the Riverway, but wants more communication between the district, developers and the city.

Caldwell also plans to form a municipal management district, which would allow additional property taxes on the development to cover the cost of public improvements and other services that complement the city of Waco. The city council would have to sign off on Caldwell's application for the district to the Texas Commission on Environmental Quality.

Also during Tuesday's meeting, the city council unanimously approved the creation of a zoning overlay district for the Riverway estate, along with the rezoning of several areas of the property in accordance with plans by the promoter

City Manager Bradley Ford said Monday that creating the overlay district would set design standards for the development's homes and streets.

A timetable has not been set for second readings and votes on the TIF funding and zoning measures.