Chris Paul/Houston Public Media
The Woodlands Waterway runs through the master planned township.
The city of Houston would agree to not absorb the sprawling Woodlands Township as part of a $50 million agreement considered by the city council on Wednesday.
In exchange for a series of payments from a joint city-township fund over the next three years, Houston would “affirm that it has no intention to annex” the master-planned community of more than 110,000 people.
Houston City Council member Edward Pollard tagged the item on Wednesday, delaying the city’s vote by one week. The township was slated to consider its side of the agreement at a meeting on Wednesday afternoon.
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Pollard told reporters he didn’t “have any reservation at the moment” but was seeking further discussion before a final vote.
“You just want to make sure it’s the best deal,” Pollard said. “You can just think always of the short term and grab what’s there today, but you have to think about maybe some of the unintended consequences for the future.”
Mayor John Whitmire called the agreement a “win-win for Houston and one of its neighbors.” Brad Bailey, chairman of the Woodlands Township, agreed.
The measure “would give the city some short-term relief on their obligations [and] give the Woodlands the ability to finally put to bed the annexation thing,” Bailey said.
Representatives for the Howard Hughes Corporation — which plans and manages the community — did not respond to requests for comment.
Annexation looms large over unincorporated communities near Houston. The city absorbed the well-to-do Kingwood neighborhood in 1996, despite fierce pushback from many of the approximately 50,000 residents at the time.
In 2017, the Texas Legislature approved a measure ending forced annexation. Instead, residents in an area up for absorption must approve the move before it can proceed.
By forestalling annexation, the city of Houston passes on a significant source of revenue. The Woodlands Township forecasts nearly $51 million in property tax collection in 2027 — with a tax rate three times lower than Houston’s — as well as nearly $43 million in sales tax revenue.
“I’m supportive of it, and I think it’s a win-win,” said Sallie Alcorn, chair of the Houston City Council’s budget and fiscal affairs committee, which will discuss the proposal next week on Tuesday.