Cedar Park council to vote on new shopping center incentives
On Nov. 12, Cedar Park City Council is expected to discuss incentives for a new shopping center that could include retail and restaurants southwest of the intersection of Toll 183A and New Hope Drive.
The Parke, which will be anchored by Whole Foods 365, could open in 2017 and include 300,000 square feet of new commercial space on vacant land north of At Home in the Town Center plaza and south of the Cedar Park Center, according to Nov. 12 meeting documents. Council could vote on two incentives for the project at the Nov. 12 meeting.
The project would cost at least $50 million, representatives from landowner Endeavor Real Estate Group said.
On Nov. 6, Whole Foods announced plans to build at The Parke. Cedar Park will be the site for one of the Austin-based chain grocer’s first Whole Foods 365 stores, which will open in 2017. The 365 concept is intended as a smaller-scale version of Whole Foods’ larger stores and will include affordable products, Whole Foods representatives said.
Phil Brewer, city of Cedar Park’s economic development director, said Nov. 10 that Whole Foods 365 will be a key anchor for The Parke.
“That is going to be indicative of the caliber and quality of the other tenants that you’re going to see in this development,” Brewer said.
At an Oct. 8 City Council meeting, Charlie Northington, Endeavor Real Estate Group managing principal, said the center will bring retail that is “unique” to Cedar Park and Central Texas. Although details about specific retailers are not yet available, the developer could announce retailers’ names in late December, Northington said Nov. 10.
Endeavor has many prospective tenants eager to be located in The Parke shopping center near Toll 183A, Northington said.
“This is going to be best in breed of retail tenants that are in the [Austin area],” he said.
On Oct. 8, City Council had a first reading for an ordinance amending sign requirements on The Parke’s property, allowing for taller signs to more “easily be seen” from Toll 183A, Northington said. On Nov. 12, council is expected to host a second reading of the ordinance as well as vote on it.
Two incentives for The Parke, worth a total of $3.5 million, are on council’s Nov. 12 agenda (PDF).
The first incentive would reimburse Endeavor up to $2 million throughout five years. The reimbursements would be drawn from new city revenue resulting from the new shopping center. Endeavor would get back its payments of one-fourth of the 2-cent sales taxes on the property as well as half of its payments of property taxes for The Parke.
The tax reimbursement incentive is based on metrics the developer needs to meet within a certain timeframe. Endeavor must develop The Parke project for at least $25 million by Aug. 31, 2017 and finish The Parke for a total of $50 million by Aug. 31, 2018.
A second city incentive would reimburse Endeavor for an additional amount, up to $1.5 million, for costs of construction such as water, sewer, drainage, roads and sidewalks. According to the proposed incentive agreement, Endeavor must finish the shopping center completely to receive the reimbursement in two halves—the first within three months, the second within six months.
The infrastructure reimbursement would come from the Cedar Park Community Development Corporation, or 4B Board. On Oct. 13, 4B members unanimously approved the agreement. The 4B board is funded by one-quarter of the city’s 2-cent sales tax.