Cedar Park creates tax increment reinvestment zone, paving way for super-regional destination center

Published: Fri, 11/11/22

Cedar Park creates tax increment reinvestment zone, paving way for super-regional destination center


Cedar Park City Council approved a tax increment reinvestment zone to support future Project Northwest New Hope development at its Nov. 10 meeting.
(Courtesy NFM)

Community Impact
By Zacharia Washington, Claire Shoop 

Cedar Park City Council unanimously approved a tax increment reinvestment zone that will fund public infrastructure and other site improvements to support a future $400 million mixed-used development during its Nov. 10 meeting.

Called Project Northwest New Hope, the site will be a super-regional destination center that will include a convention center and hotel as well as a NFM retail store, according to the city. NFM has one other Texas store located in The Colony in North Texas.

CPM Development purchased the site and plans to build a 250-room full service hotel, a 30,000-square-foot city-owned convention center, a 500,000-square-foot NFM—formerly Nebraska Furniture Mart—store, a 700,000-square-foot warehouse space to support NFM and 250,000 square feet for high-quality commercial development, according to city documents.

Media and Communications Manager Jennie Huerta described the development, which is located on the land west of the H-E-B Center near the intersection of 183A Toll and West New Hope Drive, as a “shopping destination area.”

The new TIRZ includes 117 acres purchased by CPM as well as the 32 acre H-E-B center site and the 2-acre detention pond site, City Attorney JP LeCompte said at the Oct. 27 City Council meeting.

However, LeCompte said only the 117-acre parcel will be used for revenue-collection purposes. The revenue collected from that site, including sales taxes, hotel occupancy taxes and mixed-use beverage taxes as well as 50% of the property tax revenue, will pay for public infrastructure and site improvements at the development, according to city documents.

TIRZs are created by city councils to help promote and finance economic development and redevelopment projects, according to the city.

The city will set up a TIRZ board to oversee the use of funds that will include members of City Council, LeCompte said. The TIRZ will be in place effectively immediately for a term of 30 years at most.

This item will come back before City Council on Dec. 8, when council will approve the final project and financing plan as well as the TIRZ agreement, LeCompte said.
By Zacharia Washington - Zacharia joined Community Impact Newspaper in January 2022 after a year spent working on a community engagement project at the Texas Observer. She covers education, business, transportation, development and local government for the Leander, Cedar Park communities and Leander ISD. Prior to CI, Zacharia graduated from Huston-Tillotson University, where she received her Bachelor of Arts degree in communication with a concentration in journalism. Zacharia has a passion for journalism, service and the community, and she's honored to work at a place with the same values as her own.
By Claire Shoop - Claire joined Community Impact Newspaper in September 2019 as the reporter for the Sugar Land/Missouri City edition and in December 2021 moved to Austin to become the reporter for the Northwest Austin edition. In May 2022, she was promoted to be editor for the Cedar Park/Leander and Georgetown editions. She graduated from The University of Texas at Austin in May 2019 where she studied journalism, government and Arabic. While in school, Claire was a fellow for The Texas Tribune, worked for the student newspaper, The Daily Texan, and spent a semester in Washington, D.C. She enjoys playing cards with her family and listening to the Boss, Bruce Springsteen.
 


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