The Woodlands Township Board of Directors and the Houston City Council will each vote Wednesday, Aug. 26, on a $50 million agreement that would make Houston's promise not to annex The Woodlands permanent, replacing the current 2057 expiration date.
If both bodies approve the third amendment to their 2007 Regional Participation Agreement, the township would pay Houston $50 million across four installments by the end of 2029, and Houston would affirm it will not annex The Woodlands unless certain unspecified conditions are met. The full amendment text has not been publicly released.
As we reported Aug. 20, the deal emerged after what township officials called "collaborative discussions" between the two entities. The vote date and payment details were confirmed when both agendas were posted Wednesday, Aug. 19.
What the township pays
The four payments break down as follows:
- $22.63 million released from the existing Regional Participation Fund by Dec. 31, 2026
- $9 million by the end of 2027
- $9 million by the end of 2028
- $9.37 million by Dec. 31, 2029
The first installment is not new spending. That $22.63 million already sits in the Regional Participation Fund, accumulated through the township's ongoing one-sixteenth of 1% sales tax contribution. The amendment would simply lift restrictions on those funds so Houston can access them.
The remaining $27.4 million in cash payments over 2027–2029 will come directly from the township, according to a statement from Township Board Chair Brad Bailey.
What the township gains
Starting in 2030, the one-sixteenth of 1% sales tax the township had been sending to the fund would stay with The Woodlands for its own use. The township's 2025 budget dedicated roughly $2.3 million to Houston under the current structure, according to Community Impact.
More significantly, the amendment would remove the 2057 expiration on Houston's annexation prohibition, making it permanent.
"The reason to move forward with the agreement is to ensure The Woodlands is protected from annexation if state law were to change in the future," Bailey told the Houston Chronicle.
Texas lawmakers ended forced municipal annexation in 2017, requiring a voter referendum before larger cities could annex communities. The Woodlands faces no immediate annexation risk under current law, but Bailey said the deal guards against any future legislative reversal.
Bailey also confirmed Houston would face no restrictions on how it spends the $50 million.
Background
The original 2007 agreement included a $16 million upfront payment from The Woodlands plus the ongoing sales tax dedication, all in exchange for a 50-year annexation freeze. Portions of the township sit within the extraterritorial jurisdiction of both Houston and Conroe; the township also entered a separate 2007 agreement with Conroe.
In November 2021, Woodlands voters rejected incorporation as a city by 67%.
Houston Mayor John Whitmire's office did not respond to a request for comment from the Houston Chronicle.
How to attend
The Township Board holds a special meeting at 4 p.m. Wednesday, Aug. 26, at The Woodlands Township offices, 2801 Technology Forest Blvd. Houston City Council meets at 9 a.m. the same day at Houston City Hall, 901 Bagby St.
