By Joshua Winata
Killeen Daily Herald
COPPERAS COVE – The City Council entered into an economic agreement on Tuesday with local developers in hopes of creating a new subdivision that just might pay for itself.
The agreement, under Chapter 380 of the Texas Local Government Code, allows the city to split the burden of providing water and sewer infrastructure to the proposed Mesa Verde II development in western Copperas Cove.
The water improvements include tying the development into a 12-inch water line on Skyline Drive and building a 300,000-gallon water storage facility.
According to current funding limitations, the city alone would be unable to provide such necessary water supply capacity to the area until 2014.
The Mesa Verde Partnership, made up of local developers Jimmy Clark and Dustin Dewald, has agreed to contribute $700,000 to construct water improvements in the area.
Under Chapter 380, the city is authorized to make grants and loans in the area of economic development and will repay the developer in the form of grant payments.
The city also will put in another $620,750 from the 2008 tax note issuance. City Manager Andrea Gardner said that money will ultimately be reimbursed by the sewer and water revenues generated by the new development.
"There has been considerable discussion about new development paying for itself, and this is an opportunity to be just that," Gardner said.
During the meeting, the City Council also adopted a new ordinance that establishes procedures for the consideration of economic development projects, as required by Chapter 380. All future proposed development projects seeking economic development incentives will adhere to the requirements put forth by the procedures.
The city also approved a contract for legal services with Allen Boone Humphries Robinson LLP to protect its interests in negotiating the financing for the development.
Contact Joshua Winata at email@example.com or (254) 501-7476.