TRWD sets $11.80 canal connection fee to fund Panther Island stormwater infrastructure

TRWD sets $11.80 canal connection fee to fund Panther Island stormwater infrastructureThe district approved a new fee structure to recover drainage costs from developers while utilizing the canal system as the primary stormwater conveyance mechanism for the island.

The board approved a canal connection fee of $11.80 per land square foot.

The fee aims to recover a share of the $180 million estimated cost for the canal's drainage components.

The canal system will replace traditional on-site underground detention for developers.

The collection rate is initially set at 40% of the total cost to maintain development viability.

The Tarrant Regional Water District (TRWD) Board of Directors has approved a resolution establishing a "canal connection fee" to support the development of the Panther Island canal system. Revenue from the new assessment will be directed to the district's Special Project Fund, designed to recover costs associated with the infrastructure’s role as the primary stormwater conveyance for the island, replacing the need for traditional underground detention systems. According to district staff, the fee is established at $11.80 per land square foot. Unlike standard water and wastewater impact fees in the region that are typically assessed by meter size, this structure is calculated based on land area to reflect the volume of stormwater runoff. The figure was derived from a cost estimate of $180 million in 2025 dollars, which isolates the drainage and operational attributes of the system. Staff noted that while the total canal system cost is approximately $210 million, aesthetic attributes not essential to drainage were excluded from the fee calculation. The approved fee represents a collection rate of 40% of the total recoverable cost. Staff explained that this percentage was selected to balance cost recovery with the financial realities facing developers. "We need to recover a reasonable share from those private landowners and developers," a staff member told the board, while emphasizing the need to be "cognizant of not negatively impacting the pace and quality of development." The district currently owns approximately 40% of the developable land on the island, which aligned with the decision to set the initial collection rate at that level. A key technical aspect of the project is that the canals will function as the stormwater utility. "The canal system will serve as the primary stormwater conveyance... in lieu of traditional underground," staff confirmed. As a result, developers who connect to the system will generally not be required to build on-site detention facilities, offering a potential cost offset against the new fee. The resolution mandates that the fee structure and estimated construction costs be reviewed at least every five years. Additionally, the board approved a separate contract with The Street Plans Collaborative to assist with activation planning and project identification on Panther Island.