The Killeen Economic Development Corporation agreed to pay $234,000 for infrastructure improvements to locate a retirement and Alzheimer’s facility on a 10-acre lot on Clear Creek Road.
The corporation’s board approved a performance agreement with SH 201 Development LC at a meeting Wednesday.
The agreement requires the corporation to help fund infrastructure improvements in the area of the 2200 and 2300 blocks of Clear Creek Road, across from Metroplex Hospital.
“We are very happy to have them,” said Pat Kaufman, president of the Killeen EDC, about the future development. “There are a lot of folks in this region that would have liked to have this project.”
In exchange for the funding, the developer group is to construct a 40-bed, long-term care facility with 36 beds for Alzheimer’s patients, said John Crutchfield, the Killeen EDC’s secretary.
Once the facility is completed, the developer also will need to create 98 direct jobs and make a $13.4 million investment in the community, according to the agreement.
“We have an employee standard, a construction standard and an investment standard they have to meet,” Crutchfield said.
If the development group doesn’t meet the performance standards, Killeen EDC will have a chance to get its funding back, he said.
“The incentives are relatively low compared to the capital investment,” Crutchfield said.
According to an economic impact study performed by the corporation, in the first 10 years, the business in the agreement will generate $45.8 million in payroll and generate about $17 million in taxable values.
The medical service also is not available at this time, Crutchfield said.
Another benefit from the agreement is once the infrastructure is installed, it will help support other businesses in the area, Crutchfield said.
Killeen EDC didn’t release the full performance agreement at this time, but it should be available in 10 days.
The funding for the agreement comes from money allocated to Killeen EDC from the city of Killeen to conduct economic development.