HOUSTON, Texas (KTRK) — Houston is set to receive $50 million from The Woodlands over the next several years as the two municipalities move to end a regional partnership agreement that also prevents the city from annexing The Woodlands in the future.<\/p>\n
Houston City Council voted on Wednesday to terminate the Regional Partnership Agreement with The Woodlands Township.<\/p>\n
Under the agreement, Houston and The Woodlands contributed portions of tax revenue to a regional fund intended to pay for projects such as toll roads and airport infrastructure.<\/p>\n
More than $20 million remains in the fund. Under the new agreement, that money will come under Houston’s control.<\/p>\n
The Woodlands will pay Houston about $22.5 million this year, followed by payments of at least $9 million through the end of 2029, bringing the total value of the agreement to $50 million.<\/p>\n
In exchange, Houston will give up any future ability to annex The Woodlands, even if state law were to allow it.<\/p>\n
Houston Mayor John Whitmire said the agreement provides the city with additional funding at a time when officials are seeking ways to address budget challenges.<\/p>\n
“We better be responsible and accept this $50 million because we may never see it again, and Lord knows we need it,” Whitmire said before the vote.<\/p>\n
Whitmire said he was surprised The Woodlands agreed to the $50 million payment.<\/p>\n
“I was surprised, quite frankly, they came and agreed to the $50 million,” he said. “They didn’t really have to.”<\/p>\n
The agreement has drawn criticism from Houston City Controller Chris Hollins, who called the deal short-sighted.<\/p>\n
“This is not a deal any CFO would make,” Hollins said. “This is not a deal you would make with your own money, and we shouldn’t do it with taxpayer dollars, either.”<\/p>\n
Council member Joe Panzarella, the only member to oppose the agreement, said he was concerned about changing the restrictions on how the funds can be used.<\/p>\n
“My major concerns were that these funds were originally for infrastructure and park improvements,” Panzarella said. “Now we are moving to have them unrestricted, and I believe we’re leaving money on the table for future infrastructure projects.”<\/p>\n
Whitmire has cited several areas where the city could use additional funding, including the Houston Health Department, infrastructure, public safety and homelessness. He has not specified how the $50 million will be allocated.<\/p>\n
The Woodlands Township Chairman Brad Bailey described the agreement as a win-win for both communities.<\/p>\n
“Being able to keep those funds home and back into our community is a really big deal and something everyone in The Woodlands is excited about,” Bailey said.<\/p>\n
Bailey said The Woodlands plans to continue working with Houston on future projects even after the regional partnership agreement ends.<\/p>\n
Whitmire said he will continue looking for ways to generate additional funding as Houston works to address its budget deficit.<\/p>\n
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