The Midland City Council unanimously approved a resolution on Feb. 25 to establish The Preserve Municipal Management District (MMD), a financial mechanism designed to support the development of The Preserve. This large-scale mixed-use project, set to break ground in early 2025 on the former Nueva Vista Golf Club site, will feature retail, office spaces, dining, and a new zoo. Nearly half of the development will be dedicated to parks, open areas, and natural recreational spaces.
The need for a MMD arose after drainage costs for the development exceeded initial projections. In response, project developers approached the city to explore funding solutions, leading to the establishment of the district as a financial mechanism to support necessary infrastructure improvements.
City Manager Tommy Gonzalez provided an overview of municipal management districts, explaining that they establish a geographic area governed by a board of directors, which oversees approved projects within the district.
Gonzalez also explained that the district will have the ability to issue municipal bonds to fund capital improvements, such as drainage and infrastructure projects, and will be responsible for repaying those bonds over time.
“It’s set up for the idea of doing bond improvements or capital improvements, so they have the ability to sell bonds, municipal bonds, and they have to go through the same rigor as the city does with respect to those bonds, and then they have to be able to execute on those bonds and pay those bonds over the life of the loan,” Gonzalez added.
“This is going to be a mechanism for us to make sure that The Preserve is built in a timely manner and that we can get this thing off the ground and provide the zoo, The Preserve, things like this, to the citizens of Midland,” Councilmember John Burkholder said during the meeting.
Council members emphasized that the creation of the district will not result in a tax increase for Midland residents. Instead, any tax adjustments will apply only within the designated district and will be determined based on the funding required for necessary improvements.
With the council’s approval, The Preserve MMD is now set to move forward.