The Killeen City Council on Tuesday voted to create a public facility corporation that will set the stage for a $51 million apartment complex in north Killeen.
Approval came in a 4-3 vote -- with Mayor Jose Segarra casting the tie-breaking vote -- and was accompanied by approval by the same 4-3 margin of rezoning of the land where the complex will be built near East Veterans Memorial Boulevard and W.S. Young Drive.
The PFC has been proposed specifically for a potential multifamily project by The NRP Group with the city.
“Consideration of that specific project will come forward at a later date, but the viability of the project is dependent on the city’s creation of a PFC because of the tax-exempt status the PFC can provide to a public facility,” Killeen City manager Kent Cagle said in Dec. 10 staff report.
Since November the council has been in discussion with Ohio-based NRP Group, which seeks to build the $51 million apartment complex.
To do this, the city has discussed the establishment a public facility corporation, an option available only to municipalities, not to private developers. NRP has indicated the public facility corporation to be a requirement of the project, and would allow the company to not pay property taxes for 75 years — something local developers have taken issue with.
It would also be located in the North Killeen Revitalization Program area. According to a city report, this program serves to promote the development and redevelopment of North Killeen and includes incentives for residential and commercial/business structures’ rehabilitation, expansion or new construction.
This story will be updated later this evening.