A major mixed-use development is moving forward in Central Texas after months of legal tension and negotiation between city officials and a builder.
The Hutto City Council approved agreements last week for Sugar Land-based Ashton Gray Development’s Limmer Square, a 112-acre project near U.S. Highway 79 and State Highway 130, the Austin Business Journal reported.
The estimated $249 million development will include 205 single-family homes, 220 townhomes, 300 apartment units, and 60,000 square feet of commercial space.
Originally called Pearl Estates, the project sparked controversy in 2023 when Ashton Gray sought to remove the land from the city’s extraterritorial jurisdiction under Senate Bill 2038, a state law created two years ago that allows property owners to exit ETJs without city approval as a way of avoiding local regulations. The city rejected the attempt and joined a broader legal challenge against the law’s constitutionality.
In response to growing public concern and potential environmental impacts, city staff and Ashton Gray worked toward a compromise to keep the development within Hutto’s city limits. Under the agreement, the site will be annexed and connected to the city’s wastewater system. The city will also support the formation of a Public Improvement District to help fund necessary infrastructure.
“You could have stayed out in the county. We would have had all the impacts regardless,” Hutto Mayor Mike Snyder told the developer at a council meeting. “Now there’s a little control. It’s more of a collaborative effort.”
Formal resolutions for annexation, PID creation and a municipal services agreement are set for next month, with zoning decisions expected in June.
The fast-growing city northeast of Austin continues to attract major development, including the proposed 94-acre Legacy Park and the 257-acre Gateway at Hutto.
—Rachel Stone
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