Schertz City Council Aug. 14 awarded a $2.38 million bid to V.K. Knowlton Construction and Utilities for a massive road and drainage improvement project in north Schertz.

The Enterprise Park Development/ Mid-Cities project initially involved rezoning of a 209-acre tract from Manufacturing District-Light (M-1) and General Business to Planned Unit Development near Schertz Parkway.

Development representatives previously said this would be the first commercial planned unit development in Schertz, which will allow them more flexibility in site planning as well as be able to provide a higher quality product.

The cities of Schertz and Selma are working together on a few specific elements of the project. Lots fronting Interstate 35 will be zoned for business while the back part of the property will be zoned for manufacturing. Associates Drive will be extended out its existing Tri-County Business Park area toward Lookout Road.

Selma has agreed to transfer a portion of Lookout (I-35 to the 90-degree turn) to Schertz so that it can be upgraded and entail improved drainage. The new route will be renamed Enterprise Drive. Associates Drive also will be renamed.

The Schertz Economic Development Corp. is covering up to $900,000 in engineering and construction costs while the developers are contributing $1.9 million for construction.

Developers will have responsibility for any overages. The city engineer will design and manage the overall project.

The development groups are Mid Cities 35 Partners Ltd. (Trinity Asset Development Company), Schertz PT Industrial Associates Land LP (Trammel Crow), and TC III Land LP (Cross & Company). The estimated project completion is March 2008.

In other recent action, council:

• Approved the purchase of 8.3 acres of undeveloped land at the Links of Fairway and Fairhaven for possible parkland in the Scenic Hills community. City Manager Don Taylor said this acquisition will fit into the city’s newly adopted master plan for parks and greenspace. A new parks superintendent is slated to join the city later this month.

• Approved annexing 194 acres at the southwest corner of Eckhardt and Froboese roads. Plans call for a 1,200-home subdivision to be built there.

* Approved annexing 35 acres in the area of Farm Road 1518 and Hillbrook and Schaefer roads. The local school district plans to build the replacement campus for Corbett Junior High School in this neighborhood.

• Discussed a joint proposal with the city of Cibolo to petition the city of San Antonio for the release of 3,500 acres from the latter’s extraterritorial jurisdiction. FM 1518, Lower Seguin Road, Cibolo Creek and Interstate 10 border the land in question that could enter Schertz’s ETJ. A meeting among property owners is to take place at 6:30 p.m. Aug. 29 at City Hall. Attendees will discuss signing a letter of support for the proposal.

City officials also have scheduled public hearings on the proposed tax rate and budget for fiscal year 2008. The first hearing on taxes is set for Sept. 4. Hearings on the rate and budget are slated for Sept. 11. Council anticipates adopting a new rate and budget Sept. 18.