The final phase of the Cottonwood Creek Public Improvement District is nearing completion, bringing one of Hutto’s larger residential developments closer to full buildout.

The big picture

Improvement Area No. 3, also known as Phase 7 of the Cottonwood Creek development, includes 171 single-family homesites and represents the last bond-funded phase of the project.

Land development began in January 2025, paving was completed in October, and the city is expected to accept the infrastructure in February, according to project documents.

The Cottonwood Creek community is located off CR 132, south of Hwy. 79 and has been under development since 2021.

“We’ve already had two assessments out here that covered 546 home sites, and those are completely sold out,” said Kenneth Blaker, a representative for Lennar Homes, the project’s developer.

A second bond issuance approved last year funded infrastructure for 262 homesites in Phases 5 and 6.

The final phase would bring the total number of homesites within the Cottonwood Creek PID to about 979, with more than 665 residents currently living in the community, Blaker said.

The framework

Phase 7 includes a mix of 50-foot and 70-foot lots, with some of the larger homesites featuring three-car garages. Home values have increased over time, with recent average sale prices around $425,000, according to the developer.

Amenities across the development include pools, playgrounds, basketball and pickleball courts, hike and bike trails, picnic areas and open space.

Lennar Homes has also deeded 20 acres of open space to the city and is coordinating with city officials on a future elevated water storage tank.

To support infrastructure costs tied to the final phase, the city is preparing to issue Special Assessment Revenue Bonds, Series 2026, which would be repaid through assessments on properties within Improvement Area No. 3 rather than through citywide taxes.

Once fully built out, the entire Cottonwood Creek development is projected to generate about $362 million in taxable assessed value, producing an estimated $1.4 million annually in property tax revenue for the city at current rates.

City officials expect to take the next formal steps toward bond issuance later this spring or early summer.

“>