PRESENTER: Presenter
Jordan Matney, Deputy City Manager
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SUBJECT: Title
Discuss and consider the approval of a resolution recommended by the New Braunfels Economic Development Corporation approving an expenditure of up to $2.4M for additional construction and financing costs of Castell Avenue Phase 1 - Coll Street Drainage Improvement, pursuant to Section 501.103 of the Texas Local Government Code.
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DEPARTMENT: Transportation & Construction Services
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COUNCIL DISTRICTS IMPACTED: 5
BACKGROUND INFORMATION:
The South Castell Visioning Plan, which was completed and adopted in 2018, publicly explored how to convert underused City-owned land into a mixed-use district in downtown New Braunfels. The plan outlined a vision for the city-owned properties on South Castell, future uses and streetscape improvements. The City then began to explore what public infrastructure investments were needed to realize the vision and also provide a broad benefit to downtown New Braunfels. In the Fall of 2021, the New Braunfels Economic Development Corporation (NBEDC) contracted with Kimley-Horn to provide a preliminary engineering design and streetscape plan for the South Castell corridor from Bridge Street to Business 35 to support the overall adopted vision. The proposed improvements focused on pedestrian safety and comfort, a better downtown walking experience and drainage and utility concerns, and the City held open houses asking participants to provide feedback. The findings from the engineering report, which divided the project into phases, were presented to the NBEDC in late 2022. Phase 1 of the proposed corridor improvements detailed the need for drainage upgrades on Coll Street between Castell Avenue and the Comal River. The 2023 Bond Advisory Committee reviewed the proposed Phase 1 drainage improvements, but it was not put forward for consideration in the 2023 bond. The NBEDC, in a later strategic planning process, ranked Phase 1 as the number one project priority for funding and implementation.
On March 9, 2023, NBEDC approved funding for Kimley-Horn to complete the final design of the Castell Avenue Phase 1 Project. The NBEDC received an update on this project at its workshop meeting on January 24, 2024. At that time, 60% design plans were presented and a cost estimate was provided. Three alternatives were offered to the NBEDC for consideration: 1) adding trees only; 2) adding enhanced landscaping with plantings and hardscapes; or 3) completing underground electric and telecommunication conversions, street lighting and the tree and landscaping improvements from the first two alternatives. The NBEDC Board agreed to add all three alternatives to the project. For the utility companies to begin design of the underground conversions, a commitment of construction funding was required, which the NBEDC provided at their meeting on February 15, 2024 after public hearing. A project cost of $7.2M was approved for construction funding and approved by the City Council on February 26, 2024. Staff reiterated that the construction estimate was based on 60% of design and that potential cost increases were likely given the preliminary nature of the estimates and the continued time needed to complete design before the project was ready for bidding and construction. Staff updated the Board on evolving project costs as the design progressed.
Construction bidding for this project was completed April 2, 2026. Four bids were received from qualified contractors and evaluated by staff. Based on the bid from the selected best value contractor, a funding shortfall of $2.4M has been identified beyond the construction funding of $7.2M approved by the NBEDC in February 2024.
The NBEDC received a presentation about this project expenditure at its May 21, 2026 meeting. This project falls under the Planning and Infrastructure category in the NBEDC Strategic Priorities. The NBEDC held a public hearing on June 18, 2026 and approved the expenditure.
ISSUE:
The final bids for the Castell Street reconstruction - Phase 1 were received. The final amount is $2.4M greater than the original $7.2M estimate from February 2024.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☒Enhanced Connectivity ☒Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
• Enhanced Connectivity - Set total number of linear feet of gaps and measure progress made through redevelopment, capital investment, etc.
• Enhanced Connectivity - Increase bikeway, trials, and sidewalk miles
• Enhanced Connectivity - Increase walk and bike score
• Community Identity - Allocate resources and recurring funding dedicated to community wide beautification and streetscape enhancement
• Community Identity - Increased public art and/or placemaking installations
• Community Identify - Allocate resources and recurring funding dedicated to beautification and streetscape enhancements
• Community Well-Being - Develop capital and staffing investments that improve safety, reduce heat islands, and encourage transportation modes that support healthier lifestyles and exercise such as biking, walking and running
Envision New Braunfels
• Support Vibrant Centers
• Activate Neighborhoods
• Innovate in Parks and Public Spaces
• Bolster Resilient Infrastructure
• Connect All
• Implement Downtown improvements
• Revitalize the core of New Braunfels
• Enhance sense of place through unique spaces
• Make unifying and transitional connections to and from Downtown through efforts like the South Castell Visioning Plan
New Braunfels Economic Development Corporation (NBEDC) Strategic Priorities
• Planning and Infrastructure - Make thoughtful and strategic investments in capital planning processes as well as infrastructure development in areas including transportation, drainage, public spaces, and trails to create an attractive environment for business growth and development and talent acquisition
• Enhancing Sense of Place - Strengthen quality of place by advancing investments that preserve New Braunfels’ character and improve downtown amenities, create unique outdoor spaces, and support catalytic projects for the community.
Downtown Implementation Plan Critical Success Factors
• Aesthetics and Pedestrian Infrastructure: fill in pedestrian amenity “gaps” in Downtown, which may include pedestrian lighting, street furniture, landscaping, trees and shading devices
• Circulation and Walkability: repair broken, incomplete sidewalk network and build new sidewalks where absent along retail and commercial streets
FISCAL IMPACT:
The original $7.2M expenditure has been incorporated into financial forecasting as a debt issuance with $600,000 of estimated annual debt service. An additional $2.4M will cost approximately $200,000 in additional annual debt service. The NBEDC has available funds to approve this expenditure.
Recommendation
RECOMMENDATION:
The NBEDC and City Council have considered this project and taken multiple votes to advance the project to final construction funding:
