Magnolia extends building permit delay for third time to address water supply issues

Magnolia city officials extended for the third time a moratorium on new building permits as the city tries to address a water supply shortage. 

City leaders first voted to stop issuing new permits in December 2022 for commercial and residential development projects until additional water wells were built to keep up with demand from growth in the community.

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The permit moratorium also was extended in December and in April.

During a city council meeting Tuesday, officials again voted to extend the moratorium for an additional 120 days.

It is unclear when city leaders will lift the moratorium. Magnolia Mayor Todd Kana did not immediately respond to requests for comment.

Two additional water wells are expected to be built and operational this year. Well No. 7 was planned to be built and fully operational by May, however, more work is needed, said City Administrator Don Doering. 

“In order to upgrade Well No. 7, we’re going to have to take it out of service for two weeks,” Doering said. “We don’t want to ramp up (development) and then stop.”

Well No. 8 is expected to be built and fully operational in December, with additional water wells expected to be built annually to meet commitments to provide water.

Developers with the Audubon subdivision also entered into an agreement with the city to to build a new $1 million water well. In the agreement, the well will connect and supply treated water to the city system from the date it is operational until the city completes Well No. 7. 

On July 6, officials gave an update on the city website, stating “we are concentrating heavily on reaching a place where we are confident in the stability of our wells to be able to begin issuing new connections. Unforeseen circumstances have occurred within the last two weeks pushing our goal date further than anticipated. Although we understand there are many seeking answers, please be patient for a response as we are giving all of our attention to the situation at hand and all will be notified simultaneously when we are ready to schedule application drop-offs.”

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City officials entered into a development agreement with Magnolia Paragon LLC during the Tuesday meeting, with the expectation of building a 94.9 acre mixed development community. Developers are not promised any water connections until sometime in 2024, or until the moratorium is lifted. 

Developers with ongoing projects are allowed to continue to build, but are not guaranteed water connections. 

Currently, there are five water wells operating in the city with plans for additional commercial development in the near future, Doering told council members Tuesday.

For more information, visit cityofmagnolia.com/moratorium.