Conroe's development future hangs in the balance as city leaders consider expanding a moratorium due to severe water capacity concerns. This would put thousands of homes and millions in tax revenue on hold.
Officials in Conroe are deliberating the possibility of extending a development moratorium citywide, citing challenges with water infrastructure that cannot accommodate the area's swift growth.
A moratorium, first enacted in August 2024, continues to hinder development in northern Conroe, impacting approximately 5,000 residential lots. In response to ongoing water shortages and increasing daily consumption, city officials indicate that a comprehensive expansion may be essential to prevent system overload.
During a workshop on May 7, Norman McGuire, assistant city administrator, stated, “No new water has been added to this system since late August.”
Daily water consumption has increased from 15.4 million gallons in April 2023 to 17 million gallons this year. Officials have warned that significant investment is crucial, highlighting the need for six new wells immediately and 13 by 2037. Failure to act could result in service disruptions and potential regulatory penalties. The cost of each well ranges from $12 million to $15 million.
Developers have expressed concerns that the current moratorium is hindering economic growth. Cody Miller, representing the Greater Houston Builders Association, highlighted that numerous projects have been paused or relocated. He emphasized that for every $300,000 home that remains unbuilt, there is an annual loss of $1,281 in property tax revenue.
Mayor Duke Coon, along with other officials, attributes the current challenges to years of underinvestment. “The consequences of that misprioritization are now becoming evident,” stated Council Member Harry Hardman.
At the same time, the potential for legal challenges is becoming increasingly apparent. The Texas Commission on Environmental Quality has indicated that the city may incur fines of $25,000 daily due to noncompliance issues.
Developers, including Howard Hughes Corp., responsible for The Woodlands Hills, report that over 1,200 lots are frozen and under review.
Miller cautioned that a citywide moratorium could harm developers, the broader local economy, and prospective residents.
A conclusive decision is anticipated in the upcoming weeks as Conroe navigates the growth challenges alongside essential infrastructure requirements.
