Master-planned communities — large, mostly self-contained residential developments that can resemble small towns — are so popular in Texas that the state consistently dominates MPC housing sales.

MPCs have also been a key resource in the state’s efforts to maintain the “Texas Miracle,” the long-term demographic boom that has been threatened recently by a lack of available housing.

“MPCs and smart planning can play an important role in addressing the growth challenge that we're seeing here in Texas,” said Burt Wellmann, regional discipline leader in civil/site development for Colliers Engineering & Design.

Wellmann will be a panel participant at Bisnow’s Future of Central Texas Master-Planned Communities event on July 10 in Austin. Register here.

Wellmann’s panel topic is How Amenities, Placemaking and Mixed-Use Shape Successful Communities. Ahead of the July 10 event, Bisnow spoke with him about trends he is seeing in Texas MPCs.

Bisnow: What trends do you see impacting the future of master-planned communities in Texas?

Wellmann: Master-planned communities are still a hot commodity here, but there are challenges related to the costs of starting a new MPC.

Developers naturally want to build their new MPCs in emerging markets where growth is happening. But obviously, the landowners in those markets know this, too, and so land prices can be restrictive at times.

But the biggest cost-related challenge we see on the engineering side is going to be a lack of infrastructure, because as these developments get built out further from population centers, the infrastructure is just not there to support them. That can include appropriate roadway capacity or limited utilities such as electricity, sewer and water.

Utilities either have to be extended out to the area or built on-site to support the new community. We're talking about major infrastructure upgrades such as the construction of new treatment plants, and that is expensive.

Bisnow: What role do the state’s municipal utility districts play in overcoming some of these challenges?

Wellmann: A MUD definitely helps with the costs of building new infrastructure. But it creates a tax for end users and requires a lot of bureaucratic processes to take place, which can be really time-consuming and costly. Fortunately, Colliers Engineering can help clients work their way through the system.

The developer typically isn’t reimbursed for their costs until the homes are built and occupied, and so they have to get creative with other financing mechanisms to cover the costs of infrastructure, with the understanding that they will be reimbursed on the back end.

Ultimately, though, MUDs remain an important mechanism for getting MPCs started.

Bisnow: What role do MPCs play in addressing the state’s housing shortage?

Wellmann: The growth in Texas obviously creates demand for more housing, and I feel people prefer to own a home with community amenities.

That being said, there are creative MPC products that can be put together to create a mixed-use type of development that, ideally, provides housing for people with different incomes and needs, creates move-up options and includes recreational and work options. People want that kind of flexibility, which is the attraction of master-planned communities and also how MPCs can address the growth here in Texas.

Bisnow: What role does Colliers Engineering & Design play in the creation of new MPCs?

Wellmann: We work with developers and homebuilders to entitle, permit and close out their land development projects. From a planning and due diligence standpoint, we handle most of the entitlement work, surveys, platting and help with any agreements that need to be handled with the local city, county or utilities. From an infrastructure standpoint, we can handle all of the detailed design plans, permitting and construction management to put the desired product on the ground.

If a MUD district is being contemplated, we'll provide the engineering support and can also help manage the district for the MPC. Our group doesn't handle construction of housing or vertical components, but we do handle the civil engineering and land development aspects.

Bisnow: What’s an example of an MPC that Colliers Engineering has worked with?

Wellmann: One that we've worked on for quite a few years is Solms Landing in New Braunfels. It provides a mix of housing options, but also commercial, office and recreational. It’s probably one of the best examples of a truly master-planned mixed-use community. Its development is ongoing, and it's been successful so far.

Bisnow: What do you hope people take away from the July 10 Bisnow event?

Wellmann: If there is just one takeaway, I hope it’s people asking, “How can we do a better job of collectively anticipating growth needs and carrying out the forward planning that is necessary to support development?”

I think that we can do a better job if we take a collective approach. If all stakeholders worked together to plan a solid and well-thought-out strategy for some of these emerging areas, then perhaps more of these challenges could turn into opportunities.

Click here to register for the July 10 Future of Central Texas MPC event.

This article was produced in collaboration between Colliers Engineering & Design and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.