Hearing set for proposed 200-acre residential-commercial development in Killeen

Killeen Daily Herald
By Paul Bryant | Herald Staff
March 12, 2023

Following a public hearing on Tuesday, Killeen City Council members are scheduled to vote to rezone more than 200 acres of acres where a proposed mixed-use development is expected to be built.

“We are big, and we should be thinking big,” Mayor Pro Tem Ken Wilkerson said during a council workshop last week. “I like projects like this. I want to congratulate you for actually getting someone in the room like this who can bring a project like this to us. It’s been vacant since God created it. It’s a long time coming. We deserve it.”

City officials and prospective developers have been talking about such a project for more than a decade. Called Anthem Park, construction on Martin Luther King Jr. Boulevard could be complete in as little as three years if council members approve the project standards.

“It’s been a hard negotiation,” attorney Michael Whellan said last week. “I do appreciate the responsiveness and thoughtfulness of the city staff. Anthem Park ... will be a dynamic community (with) restaurants, office space, multifamily and single-family housing. CSW is known for its high-quality developments.”

Whellan represents CSW Development of Austin.

The development “will attract highly sought-after regional and national brands to Killeen,” including Dave & Busters, he said.

On Feb. 6, Planning and Zoning Commission members approved a request by Whellan to rezone 203.2 acres for the planned unit development.

“This is in keeping with our comprehensive plan,” said Edwin Revell, executive director of development services, during last week’s council meeting. The development will include “street trees, sidewalks, bicycle lanes, trail and park space.”

The last time Killeen officials considered such a development at the site north of I-14 near Rosewood Drive was in 2018, when it was called the “gateway project” but was half the size.

Like the Anthem Park project, the last proposal included commercial and residential properties, but officials at the time had “reservations about the city’s ability to recruit 103 acres of commercial development,” then-City Planner Tony McIlwain said.

Anthem Park includes the La Cascata addition. More than six years ago, the La Cascata Shopping Village — a proposed 210-acre commercial and residential development, was scheduled to open near Skylark Field. But it has remained undeveloped after about 15 years of planning.

“We worked well with staff,” Kevin Hunter of CSW Development said last week. “CSW ... has been developing in this area for 18-plus years.”

The Herald reported in May 2018 that John Crutchfield, then the executive director of the Killeen Economic Development Corporation, said that widespread closures of national retailers such as Kmart and others were causing delays in completing the development.

Crutchfield’s successor, Scott Connell, joined the EDC last September.

“When I got here, it was working through the issues primarily through the city,” he’s told the Herald. “We’ve been consulting with them on a variety of issues on the commercial market aspect of it and understanding what they need. Mostly, we’ve been kind of on the periphery of this one. (The city is) focused on the planning aspect and (Tax Increment Reinvestment Zone) aspect.”

Municipal and county governments use tax increment financing “to pay for improvements that will draw private investment to an area,” according to the Texas comptroller’s website. It “redirects some of the (property tax) in a geographic area designated as a tax increment reinvestment zone (TIRZ) to pay for improvements in the zone.”

In December, Killeen City Manager Kent Cagle told the City Council that CSW Development “is talking about a tax base of about $550 million” and that “they were expecting that their reimbursements were going to be significantly higher than the $14 million that we had in (the project plan).”

According to the state comptroller’s office, “future tax revenues from each participating taxing unit that levies taxes against a property are used to pay for the cost of improvements to an area. Each taxing unit may dedicate all, a portion of, or none of the tax revenue that is attributable to increased property values brought about by improvements within the reinvestment zone.”

Additional tax revenue received from the impacted properties is what’s referred to as the tax increment.

“Each taxing unit determines what percentage of its tax increment, if any, it will commit to repayment of the cost of financing the public improvements,” according to the comptroller.

In this case, the taxing entities are Killeen and other local government agencies.

Anthem Park would include 39.3 acres of commercial and retail space; 9.1 acres of office, flex and storage space; 91.9 acres of multifamily apartments; and 62.9 acres of built-to-rent mixed residential.

Construction of commercial properties could be complete within three to five years, and that of residential properties could be done within five to 10 years, according to the developer. It is expected to begin by the end of the year.

Revell said about 1,700 apartments will be built, and 700 “build-to-rent” homes are planned for Anthem Park.

Other items on Tuesday’s council agenda include:

Consent agenda

Resolution awarding a $392,099 bid to Ambrozi Contracting for Phase II of the terminal apron rehabilitation project.

Resolution authorizing the city manager to enter into a grant agreement with the Texas Office of the Governor for the purchase of bullet-resistant shields for the Killeen Police Department for $157,092.60.

Resolution authorizing the city manager to enter into a grant agreement with the Department of Justice Office of Community Oriented Policing Services to provide de-escalation instructor training to police officers for $49,000.

Resolution authorizing a letter of agreement with Pipeline Analysis for a wastewater flow monitoring study for $352,598.

Resolution ratifying an agreement with Lloyd Gosselink for legal services in Oncor Electric v. City of Killeen and acquiring the street-lighting system.

Resolution approving an amendment to the interlocal agreement with Temple for a homelessness strategic plan with Marbut Consulting.

Resolution accepting the fiscal year 2022 Edward Byrne Memorial Justice Assistance Grant and approving an interlocal agreement with Temple and Bell County.

Resolution approving investments reports for the quarter that ended on Dec. 31, 2022.

Resolution appointing council members to the Youth Advisory Commission Subcommittee.

Amend an ordinance ordering a general election on May 6 for each of the city’s four districts.

Resolutions

Authorize the city manager to review proposals from energy advisory firm 5 and enter into a contract with an energy provider.

Public hearings

Amend the fiscal year 2023 budget to adjust revenue and expenditure accounts in multiple funds.

Amend a conditional use permit to allow package stores as a permitted use at 10640 S. Fort Hood St.

The meeting on Tuesday is scheduled for 5 p.m. at City Hall, 101 N. College St.