Midway Blasts Central Texas City After Massive Deal Implodes

Tensions are boiling over in Hutto after a Houston-based developer’s high-profile mixed-use plan for the city’s 250-acre Cottonwood tract collapsed in public fashion.

Midway CEO and Chairman Bradley Freels slammed city officials for what he described as shifting rules and a lack of transparency after the Hutto Economic Development Corporation voted unanimously this month to end nearly two years of negotiations with the developer, the Austin Business Journal reported.

“Midway fully embraced Hutto’s Vision for the Cottonwood development, aiming to create an urban, walkable environment that caters to the existing suburban community while transitioning to higher land density and attracting a diverse workforce,” Freels said in a letter to city officials.

Midway was tapped in December 2023 to transform the prominent site, at Highway 79 and County Road 132, into a destination for retail, residential, office and parkland — a signature project meant to be comparable to Austin’s Mueller district.

But the deal unraveled amid finger-pointing over delays, financing terms and alleged interference from city leaders.

Mayor Mike Snyder, who also sits on the Hutto EDC board, said the decision to cut ties came after what he called a “lack of progress.” In a Facebook post, Snyder accused Midway of threatening to take its grievances to the Texas Attorney General’s office and questioned the developer’s partnerships.

“When a developer comes into Hutto, they need to do what’s right by Hutto,” Snyder wrote.

Freels countered that Midway’s hands were tied by city-related issues, including a planned highway overpass that stalled progress for nearly a year and delayed utility access until at least 2028. He also alleged that Snyder personally contacted key prospective tenants, undermining negotiations and violating the city’s memorandum of understanding.

The dispute is the latest snag in Hutto’s long quest to redevelop the Cottonwood property, once slated to be the headquarters of baseball scouting company Perfect Game before that deal imploded.

Midway had proposed a six-phase buildout over several decades in the fast-growing suburb 30 miles northeast of Austin.

Freels accused the city of failing to honor commitments to explore a municipal management district for infrastructure funding.

Hutto leaders now plan to relaunch the request for proposal process. EDC Chair Don Carlson said the focus will be on “retail and commercial components” that align with residents’ needs.

The fallout leaves Hutto back at square one on one of Central Texas’ most valuable undeveloped tracts, as the city races to keep pace with explosive population growth and the economic spillover from Samsung’s $17 billion chip plant in nearby Taylor.

— Eric Weilbacher