The Woodlands Township and the City of Houston will vote next week on a $50 million agreement that would permanently bar Houston from annexing the community and end the township's sales tax contributions to a shared infrastructure fund dating to 2007.
Houston City Council is scheduled to consider the deal at its Wednesday, Aug. 26 meeting. The Woodlands Township Board of Directors will take it up at a special meeting later that evening, the Houston Chronicle reported Wednesday, Aug. 19.
Under the proposal, the township would give up $22.6 million already sitting in a regional participation account funded by sales tax revenue. It would then pay Houston $9 million in 2027, $9 million in 2028 and a final payment of roughly $9.4 million, bringing the total to $50 million. In return, Houston would agree to permanently eliminate the possibility of annexation as long as the terms are met.
After 2030, The Woodlands would stop contributing to the fund entirely and keep that sales tax money.
Brad Bailey, chairman of the township board, told the Chronicle the goal is to protect The Woodlands from annexation even if state law changes in the future. He said Houston would face no restrictions on how it spends the $50 million.
Township officials described the proposal in a statement as the result of collaborative discussions between the two entities. Houston Mayor John Whitmire's office did not respond to the Chronicle's request for comment late Wednesday, Aug. 19.
Why now?
The Woodlands is not currently at risk of annexation. The original 2007 Regional Participation Agreement already blocks Houston from annexing the township through 2057, and a 2017 state law ended forced municipal annexation statewide, requiring a voter referendum before any large city can annex a community.
But Bailey said the deal provides a backstop. If a future Texas Legislature reversed the 2017 law, the township would still have a binding agreement with Houston.
Annexation fears date to 2007
Annexation has been a defining issue for The Woodlands for years. The debate boiled over in 2021 when the township board voted 5-2 on Aug. 13, 2021, to place an incorporation question on the ballot. Voters rejected incorporation by more than 67% that November.
The proposed amendment would give the 2007 agreement an end date, freeing the township from future contributions while locking in permanent annexation protection.
Both votes are scheduled for Wednesday, Aug. 26. Residents can attend the township's special meeting or watch for agenda details on the township website.
