Houston and The Woodlands annexation agreement

The Woodlands Township and the City of Houston moved to resolve long-standing annexation concerns through a proposed $50 million financial arrangement. Initially, The Woodlands considered ending its Regional Partnership Agreement with Houston to secure protection against future annexation, involving an immediate payment of approximately $22.6 million and subsequent annual payments.

Following negotiations, both parties approved the Third Amendment to their Regional Participation Agreement. The finalized deal eliminates the possibility of Houston annexing The Woodlands indefinitely. In exchange, The Woodlands will relinquish $22.6 million from a shared project fund and provide additional payments of $9 million in 2027, $9 million in 2028, and $9.4 million in 2030.

While Mayor John Whitmire characterized the arrangement as a “win-win deal,” some officials raised fiscal concerns. Houston City Controller Chris Hollins cautioned that the city might be trading significant future revenue for immediate cash, suggesting the agreement could result in leaving at least $100 million in future project funding on the table.