On September 9, 2016, the City acquired approximately 258 acres from the State of Texas at the former Central Unit prison site. The acquisition was authorized by the City Council on May 17, 2016. The City has planned use for the site, including the utilization of approximately 121 acres for a future industrial business park.

The Sugar Land Development Corporation (SLDC) - which is funded by a special 1/4-cent sales tax strictly restricted for economic development purposes and not available to fund the general operations of the City - has previously authorized several funding resolutions from 2014 to 2016 to support items such as land acquisition, environmental studies, archeological studies, building demolition and removal, construction of temporary infrastructure, engagement in feasibility studies, and economic impact studies to prepare the site for its intended use.

As part of the FY2019 budget, the SLDC set aside $1.3 million in a Reserve for Opportunity line item to allow items, such as the Central Prison Unit business park, to be worked on as funding needs and development opportunities arise and become more clearly defined. These funds were not allocated to a specific project as part of the CIP budget that was adopted by City Council; as discussed during the FY19 budget process, the intent was for staff to work to refine the details of planned expenditures for these projects - including the Central Unit business park - and present a mid-year CIP amendment after further discussion on all Reserve for Opportunities projects at the City Council fall retreat.   

With that, on December 4, 2018, the SLDC will consider approval of additional funding of $900,000 through Funding Resolution No. 2018-12-03 to allow for completion of drainage modeling; to complete the necessary steps to obtain drainage-related permits from FEMA, USACE, TxDOT, and UPRR; to initiate roadway schematics for the proposed Owens Road; and to advance environmental remediation efforts.  

Funding for the next steps will be reallocated from the Reserve for Opportunities line item in the SLDC FY19 budget to CIP project MU1707 - Central Prison Unit Land Planning. Since reallocation of these funds from the SLDC Reserve for Opportunities line item increases the capital project budget, approval of the City Council is necessary for compliance with the City's Financial Management Policy Statements. The amendment will then be formally documented in a budget ordinance for City Council approval after the first of the year as part of the periodic budget amendment for carryovers.

With that, as shared with the City Council Economic Development Committee on November 27, the Economic Development and Finance Departments recommend City Council approve a budget amendment to add $900,000 funding to CIP MU1707 - Central Prison Unit Land Planning from Sugar Land Development Corporation (SLDC) Reserve for Opportunity funds in the FY19 budget.