The City Council previously approved the formation of MUD No. 1 in 2014 and a Development Agreement in 2015, which included a draft of the Strategic Partnership Agreement now approved by the MUD Board. The Strategic Partnership Agreement outlines the terms for a limited-purpose annexation of developed commercial areas in the MUD into the city. The creation and development process for the MUD involves consent from the City and TCEQ, approval of related agreements, and subdivision platting, with the City Council scheduled to take final action on the annexation aspect of the Strategic Partnership Agreement on May 16 after two public hearings.