Michael Garcia Staff writer August 15, 2024

While it has been nearly two years since Magnolia created a temporary moratorium on building permits for new residential and commercial projects, officials say that hasn’t slowed developer interest to build in the city. 

Since 2022, officials have suspended applications for new building permits, with the exception of ongoing projects. This was to address a water capacity shortage caused by growth in the community.

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Booming growth from building

At the time, officials said they thought they could provide the needed water as demand for development spiked.The city of 2,800 residents is projected to increase by 600 percent in 2039 to a population of 53,000. 

City Engineer Tim Robertson predicts the moratorium could end near the end of summer 2025 as developers are making changes to their planning. 

“They’re not shutting down anything,” Robertson said. “They’re (just) slowing down.” 

This comes after council members moved forward on Tuesday with plans to extend the moratorium on building applications for another 120 days, or until they lift the moratorium. 

Shortly after, Developers of BCS Capital Group met with council members to try to create a partnership as a way to bring more restaurants into the city. 

“They knew full well that we’re in a moratorium,” said Mayor Matt “Doc” Dantzer. “But it’s not stopping them from developing.” 

Building more water infrastructure

To address the shortage, two water wells were planned to be built in 2023 as well as additional facilities, with plans to build additional wells each year to keep up with demand. Two wells have already been built with two other wells are in the process of being constructed.

An elevated water storage tank under construction and set to be built by summer 2025 and additional water infrastructure to build more capacity is planned. Currently, the city is in the process of building three ground storage tanks, two wells, two booster pump stations and the elevated storage tank, according to city documents. 

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City officials will be holding public hearings between city council and planning and zoning, with a special meeting set for Aug. 21 to vote on a moratorium for 120 days. Council members met during a regular meeting Tuesday for a public hearing and planning and zoning met Thursday for its public hearing. 

“We’re still currently in what I like to call ‘catch up mode,’ which is why we are still in a moratorium,” Robertson said. “We will continue to be until we have reached the level where we have regulatory compliance, (where) we have some cushion in there that we can handle the growth.” 

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