New Braunfels City Council voted 5-1 on September 28 to approve an advance funding agreement with the Texas Department of Transportation for the Waterway Lane Hike and Bike Trail, a 2.4-mile shared-use path that will link FM 306 to Gruene Road through the heart of the Gruene Historic District. Council member Michael French cast the lone dissenting vote. Construction isn't expected to begin until May 2028, according to Comal.News.
The $3,659,475 project is being funded largely through TxDOT's Transportation Alternatives set-aside program, which will cover roughly 80% of the cost, or $2,914,400, as reported by Community Impact. New Braunfels is on the hook for the remaining 20%, or $728,600. Of that local share, the city has already earmarked $131,800 in Park District 1 funds to cover design work and direct state administrative costs, per the City of New Braunfels legislative record, while the decision on how to cover the remaining $596,800 construction match has been pushed until engineering design wraps up.
That open question is tied directly to the financial fine print in the agreement. The advance funding agreement requires New Braunfels to remit $59,800 to TxDOT for direct state administrative and oversight expenses within 30 days of contract execution, and it holds the city responsible for 100% of any cost overruns beyond the capped federal grant allocation.
From Rejected Roadway to Federally Backed Trail
Waterway Lane is currently a no-outlet road in Gruene, and the trail project traces back to a very different proposal. In August 2021, the city floated expanding Waterway Lane as a motor vehicle roadway, but residents pushed back with negative feedback, prompting city leaders to pivot toward a hike and bike trail instead. Officials held a public meeting in June 2025 and submitted the project to TxDOT that same month for construction grant funding consideration; the Texas Transportation Commission formally selected it for Transportation Alternatives funding that November.
With the funding agreement now approved, city staff will finalize the contract with TxDOT and move into project design. New Braunfels issued a solicitation for trail design services, with proposals due October 22, according to Beacon Bid.
Safety Features Built Into the Design
The off-road path is planned with ADA-compliant curb ramps, pedestrian lighting, seating, and a pedestrian hybrid beacon to help trail users cross surrounding streets, per the same Comal.News report. Those features are meant to address the kind of street-crossing safety concerns that often accompany new multi-use paths running through residential and historic areas.
Part of a Bigger Non-Motorized Push
The Waterway Lane vote wasn't the only pedestrian-focused item on the council's agenda that night. On the same evening, council unanimously adopted a citywide Bicycle and Pedestrian Network Plan developed under a $250,000 contract with Kimley-Horn, according to Citizen Portal. The plan is aimed at addressing major physical barriers to walking and biking across the city, including I-35 and local rivers.
The timing also lines up with other pedestrian investments already underway in the Gruene Historic District. In August, the city approved a $1.35 million design contract for the separate $7.09 million Gruene multimodal project, which is backed by $5.57 million from the Alamo Area MPO. Together with Waterway Lane, the projects reflect a broader city strategy of expanding non-motorized infrastructure in a historic district that sees heavy foot and vehicle traffic.
Once built, the Waterway Lane trail will add meaningfully to New Braunfels' existing network. The city currently maintains more than 8 miles of municipal trails, including the 2.2-mile County Line Memorial Trail and the 2.25-mile Dry Comal Creek Trail, according to the City of New Braunfels. A 2.4-mile addition would represent a substantial expansion of that overall mileage, though its 2028 construction start means Gruene residents and trail advocates still have a long wait ahead.
