Houston City Council approves deal that blocks future annexation of The Woodlands

HOUSTON, Texas (KTRK) -- The City of Houston just agreed to never annex The Woodlands.

The deal would end the The Woodlands Regional Partnership Agreement with Houston, a joint fund used to pay for projects that benefit the city and the township.

Houston City Controller Chris Hollins issued the following statement on the deal:

"(Wednesday), City Council voted to sell Houston's future at a steep discount-and taxpayers will pay the price. This deal sacrifices $100-200 million in future revenue for $27 million to plug a deficit hole. It simply doesn't add up," Hollins said. "Trading a growing, decades-long revenue stream for pennies on the dollar is not sound financial management. It is a fire sale. No responsible CFO would make this trade. No member of Council would accept it with their own money. Houston taxpayers should not have been forced to accept it either. This deal does nothing to solve the City's spending problem. It simply sells off Houston's future to cover today's bills."

The new deal would pay Houston the remaining funds in the account, as well as additional payments totaling $50 million. That includes about $22.6 million by the end of the year and roughly $9 million annually for the following three years.

Last week, Brad Bailey, chairman of The Woodlands Board of Directors, told ABC13 that Houston could use the money to address its short-term financial needs.

"One-sixteenth of a penny goes into this fund, and this fund is for regional projects we could work together on," Bailey said, citing projects such as the Hardy Toll Road or improvements at an airport.

Bailey called the arrangement a "win-win," saying Houston would receive the money while The Woodlands would gain long-term protection from annexation.