FULSHEAR, Texas (Covering Katy News) — Nearly three months after postponing a vote following concerns about traffic and neighborhood impacts, the Fulshear City Council is expected to again consider an economic development agreement Tuesday that could pave the way for a new Home Depot near FM 1093 and FM 1463.
The revised Chapter 380 agreement would support construction of a proposed 134,000-square-foot Home Depot representing an estimated $38 million private investment and creating at least 40 full-time equivalent jobs.
Unlike many commercial developments, however, the proposal has drawn months of public discussion over traffic, truck access and the store's proximity to nearby homes in Cross Creek Ranch.
What is a Chapter 380 agreement?
The agreement under consideration is not a zoning request.
Instead, it is an economic development agreement under which the city would rebate 25% of its 1% local sales tax generated by the store for five years if Home Depot meets specified performance requirements, including construction of the proposed store and job creation targets. The agreement caps the rebate at $2 million, although city staff estimates the actual rebate would likely total closer to $500,000 based on projected sales.
Why council postponed the vote
The proposal was originally scheduled for action in May but was postponed after numerous residents urged the council to take more time to evaluate the project.
Before the council voted to delay action, Council Member Abhi Utturkar said the proposal "would definitely need a lot more discussion than rushing into a decision."
During that discussion, Utturkar suggested the city consider requiring a traffic impact analysis, evaluating truck access, creating additional buffers between the proposed store and nearby neighborhoods, and directing lighting away from adjacent homes before moving forward.
Residents who spoke during the May meeting raised similar concerns, focusing primarily on traffic congestion, truck routes, lighting, noise and the project's location rather than opposing Home Depot itself.
One major change
One of the most significant differences between the May proposal and the agreement returning Tuesday involves a Traffic Impact Analysis.
The earlier agreement would have required Home Depot to complete a Traffic Impact Analysis before site plan approval. According to the revised agenda packet, Home Depot objected because a Traffic Impact Analysis is not required under the existing development agreements governing the property. The revised agreement therefore removes that requirement.
The agenda packet explains why Home Depot opposed the requirement but does not explain why the city ultimately agreed to remove it or whether any concessions were made during negotiations. Those questions could become part of Tuesday night's council discussion.
Other revisions
The revised agreement also replaces previously proposed rainwater harvesting and irrigation reuse requirements with commitments to construct a public sidewalk, provide enhanced landscaping for future outparcels and incorporate additional architectural features into the project.
What council will decide Tuesday
Council members will decide whether the revisions adequately address concerns raised when the proposal was postponed in May.
Among the questions likely to shape the discussion are whether the removal of the Traffic Impact Analysis changes the agreement in a meaningful way, whether additional conditions should be added before approval, and whether the revised agreement strikes the right balance between encouraging commercial development and addressing neighborhood concerns.
If approved, the agreement would clear the way for one of the largest retail developments proposed in Fulshear in recent years. If council members determine additional changes are needed, they could amend the agreement, postpone action again or reject it.
How We Got Here
2023: The City of Fulshear denied a request to rezone the property for residential development, leaving it designated for commercial use.
Late 2025/Early 2026: Home Depot began negotiating a Chapter 380 economic development agreement with the City of Fulshear for a proposed store near FM 1093 and FM 1463.
May 12, 2026: Residents urged the council to postpone action, citing concerns about traffic, truck access, lighting, noise and the store's proximity to nearby homes. Council Member Abhi Utturkar said the proposal "would definitely need a lot more discussion than rushing into a decision," and the council voted to postpone consideration.
August 4, 2026: The proposal returns to the council with several revisions. The updated agreement removes a proposed Traffic Impact Analysis requirement after Home Depot objected that it was not required under existing development agreements. Other changes replace proposed rainwater harvesting and irrigation reuse requirements with commitments related to sidewalks, landscaping and architectural enhancements.
Why this matters
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