The Leander City Council has unanimously denied proposed amendments to the public utility district (PUD) agreement for the Leander Springs project, an estimated $1 billion development planned by Austin-based iLand Development Group. The council’s decision last week further delays progress on the 78-acre mixed-use project, which features a 4-acre artificial lagoon and was first announced five years ago.
iLand Development Group had sought to lower the required number of apartments from 1,600 to 1,200 and requested changes to project timelines. The developer also asked for removal of the deadline for a certificate of completion on the lagoon and wanted to eliminate time requirements related to hotel construction and delivery. Under current agreements, hotel completion is required by the end of 2028.
Another proposed amendment would have removed the obligation for public access to the lagoon, though discounted admission would still be offered to Leander residents.
The development has encountered several challenges over water usage, stakeholder investment, and incentives. A previously approved $22 million city incentive package was terminated after iLand tapped into the federal EB-5 program, which allows foreign investors and their families permanent resident status in exchange for investing in U.S. commercial projects (https://www.uscis.gov/eb-5). According to records from the Texas Commission on Environmental Quality (TCEQ), an entity connected with Leander Springs has applied for a permit that would allow it 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 consistently expressed concerns about water usage associated with the development.
One amendment request sought classification of the lagoon as a “non-essential use” regarding water consumption so it would be subject to conservation requirements.
After the August 21 council meeting, iLand stated its intention to continue pursuing the project: “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 statement also noted that Miami-based Crystal Lagoons will no longer serve as lagoon developer; Austin-based VVater has taken its place.
Beyond water-related issues, iLand has faced additional setbacks since announcing Leander Springs in 2020—including contractor liens totaling $3 million.
