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Texas law meant to ease city regulations has taken an unexpected turn in Austin, where developer MileStone Community Builders is now pushing for stricter oversight. The company had previously used the law to remove 498 acres from the tiny city of Hays and develop its $500 million Hays Commons project under less restrictive county rules. However, after facing environmental opposition, MileStone is seeking to annex the property into Austin, citing the city's more robust regulatory framework as a way to address concerns about the Edwards Aquifer.

    The proposed annexation would give Austin control over water and wastewater services, allowing the city to regulate the project's land use and environmental impact. However, environmental advocates are skeptical, warning that the high-density development could harm water quality in the aquifer. The proposal will soon be considered by Austin's Planning Commission, with the City Council set to make a final decision.

    If annexation is rejected, MileStone could proceed with the project under county standards, which may be less protective of the environment. The developer's president and CEO, Garrett Martin, says that annexation would provide both parties with benefits, including utility services for the development and regulatory oversight for the city. Environmental concerns remain a major issue, but the outcome will ultimately depend on the City Council's decision.