The Greater Edwards Aquifer Alliance has sued the Texas Commission on Environmental Quality (TCEQ), alleging the agency wrongfully issued a permit to Lennar Corp. for the construction of a wastewater plant as part of the controversial Guajolote Ranch development.
Specifically, the 295-page filing in Travis County District Court alleges TCEQ made errors in projecting the potential damage the wastewater plant — which will serve the proposed 2,900-home development in far northwest Bexar County — will cause to the Edwards Aquifer.
Randy Neumann, who chairs the steering committee of the Scenic Loop-Helotes Creek Alliance — a member organization of the Greater Edwards Aquifer Alliance — said the suit is likely to take at least a year to move through the courts.
“While the lawsuit does not halt the Guajolote Ranch project, it creates significant uncertainty around the proposed wastewater treatment plant,” Neumann said in a statement. “Any investment in that facility could be at risk if the permit is ultimately remanded or vacated.”
Neumann told the Current that Lennar hasn’t yet purchased the land where either the housing development or wastewater treatment plant is to be built. He speculated that Lennar is unlikely to buy the land while the lawsuit is pending, since any of those funds would be wasted should the suit result in the state approval for the wastewater treatment plant being revoked.
“They’re really caught in this limbo land of ‘What do we do now?’ because of this lawsuit,” Neumann said.
Further complicating matters for Lennar is a City Council vote next week on whether to approve the home builder’s request to create a Municipal Utility District for the Guajolote Ranch development.
A MUD is a special government-like entity created to provide essential services in developing areas outside city limits where municipalities can’t extend services. Typically, MUDs are used to finance infrastructure through bond repair by property taxes.
However, opponents of Lennar’s development, including the Scenic Loop-Helotes Creek Alliance and the Greater Edwards Aquifer Alliance, said establishing a MUD would dramatically increase taxes for residents of and around Guajolote Ranch.
A majority of City Council members spoke out against the MUD during a meeting last week to review the proposal.
“Even if a MUD were approved, ongoing legal challenges could affect bonding and financing,” Neumann said. “Together, we believe these factors place the development in a far more challenging and uncertain environment.”
If the MUD isn’t approved, Lennar would be forced to enter negotiations with the city and other utility providers to secure deals to provide basic services to the development, Neumann told the Current.
Stay tuned.
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