The La Cascata Shopping Village is scheduled to start construction later this year with a proposed completion in late 2017, a development official said Friday.
The 64-acre retail space is located on the western border of Skylark Field near U.S. Highway 190 and East Stan Schlueter Loop.
“The retail space will house from 60 to 100 tenant businesses when the center is completed,” said Chad Bradshaw, a vice president with The Retail Connection, the site’s developer.
Among those new stores will be Tuesday Morning, which features interior home decor items. A sign is already posted on the site of its future store.
Bradshaw said the project’s budget has increased due to higher labor and material costs, but could not give a specific amount at this time.
Future build-outs could increase the size of the development to 210 acres, and include residential and more retail outlets.
La Cascata is the largest undeveloped contiguous land tract in Killeen, officials said. At build-out, it will be a master planned pedestrian friendly project that will include high-density single- and multifamily residences, commercial office, hotel, retail, restaurant and entertainment uses.
Killeen government officials have been in talks with the developers for years, and the city reached a complicated agreement with site builder last October.
The agreement provides the developer with $8 million from Killeen’s tax increment reinvestment zone fund for eligible project costs such as off-site streets, water and storm drainage.
However, the developer must create a taxable appraised value of at least $37 million within one year after the first payment date, $50 million within two years after the first payment date, and $55 million within three years after the first payment date and throughout the balance of the tax increment reinvestment zone’s term.
No revenues will be paid to the developer if the taxable appraised value drops to less than 60 percent of the annual projected appraised values in any given year.
According to the agreement, the first payment will not be made until a year after the opening date or 75 full-time jobs have been created — whichever occurs later.
The city also will provide a maximum of $3.6 million in sales tax rebates by giving the developer an annual sales tax rebate of one-half of 1 percent collected by the city, according to the agreement.
Payments will not begin until the developer completes the construction of $5 million in new capital improvements and all public infrastructure.
The development also must generate at least $100,000 in city sales tax revenues and create 75 full-time or 300 part-time jobs.
Former Mayor Scott Cosper said at the time the city and the Killeen Economic Development Corporation negotiated aggressively and the council passed “absolutely the best agreement” it could.
“We are excited about the opportunity. It is a major, major investment on (the developer’s part),” Cosper said.