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$331M project proposed in Hutto, city waits to approve water services

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HUTTO, Texas (KXAN) — A 113-acre mixed-use development project is underway in Hutto, but it needs help from the City of Hutto to supply water and wastewater services before the process can get the go ahead.

At a Nov. 2 city council meeting, Kevin O’Neil with Fidelis Realty gave a presentation on the mixed-use development project.

He said the project is slated to bring three logistics centers, retail options, including prospective grocery stores, 600 units of multi-family housing and a hotel or multi-specialty medical space to the area.

“We’d have 9.8 million of annual revenue within the greater community which we think is a really substantial number,” O’Neil said.

The proposed site is off SH 130 and Chris Kelley Boulevard just outside of Hutto. In the presentation, O’Neil said the company would like to enter into a three-party partnership with the City of Hutto and Municipal Utility District #22.

This is because the project lies partially in MUD #22 and in Hutto. In order for the development to gain water and sewer services, one or both entities must enter into an agreement with Fidelis.

At the November meeting, city council place 2 Dan Thornton shared concerns about the project’s impact on the city’s water capacity.

“That’s my biggest concern with this is. Voluntarily saying we want to bring more people in and serve more people than we’re currently serving when we’re having trouble with our projections with the people we’re serving already,” Thornton said.

KXAN reached out to the city about these concerns. A spokesperson said the proposed project is in its preliminary planning stage and no decision have yet been made by the Hutto city council.

The city also said that the project would be located in the Manville Water Supply Corporation’s water service area. While Manville has released the project, no official transfer to Hutto has occurred.

In a statement, the city said it would be a few years before water would be made available to the project.

“Should Hutto agree to serve it, the project would not receive water until new water sources begin coming online, currently expected in mid-2025,” the spokesperson said.  

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