Located at the southwest corner of FM 2243 and 183A, expectations are that a fully developed Leander Springs could be valued at $1 billion, according to the city.
As part of an economic development agreement with Leander Springs LLC, the city approved up to $22 million in performance-based tax incentives for the project, which promises to construct a 4-acre crystalline lagoon powered by Crystal Lagoons technology and surrounded by 10 acres of boardwalk and related amenities. The lagoon will be filled only once and operate in a closed circuit to ensure sustainable use of water.
The public-access lagoon will serve as the centerpiece for more than 1 million square feet of commercial development, including a full-service hotel and conference center planned for the property.
“This dynamic mixed-use development is a game changer for our community,” Hill said in a release. “Leander Springs has a phased approach that will bring in much needed commercial development at the beginning of the project while incorporating residential uses in a proportional manner.”
In addition to commercial development, up to 1,600 units of multifamily residential development are proposed for the project, according to the city. A phasing plan was incorporated into the city’s agreement to require commercial uses to be constructed proportionally with residential uses.
“Our conservative approach in the Leander Springs agreement helps make this project feasible for the developers while serving as a low risk opportunity for the city,” City Manager Rick Beverlin said in the release. “The deal allows us to immediately share in the economic benefits on a property that should provide excellent returns if developed to its best and highest use.”
Leander Springs LLC will qualify for tax rebate payments on the project once certain commercial development milestones are achieved, and only tax dollars generated from new commercial properties qualify, the city said, adding because rebates are restricted to new development, existing public funds will not be used to finance the project.
Leander Springs LLC is eligible to receive rebates from the city on property taxes, sales taxes and hotel occupancy taxes collected as Leander Springs develops. Some examples from the city include:
- Phase 1 property and sales tax rebates: Leander Springs must have 35,000 square feet of commercial development and the crystalline lagoon completed by Dec. 31, 2023. No more than 400 multifamily residential units may be developed during Phase 1.
- Phase 2 property and sales tax rebates: Leander Springs must have 100,000 square feet of commercial development within five years of receiving the first certificate of occupancy for developments under Phase 1. No more than 250 multifamily residential units may be developed during Phase 2.
- Additional property and sales tax rebates: Leander Springs must have 100,000 square feet of commercial development for every additional 250 multifamily residential units developed.
Proposed zoning for Leander Springs will be presented to the Leander Planning and Zoning Commission on Oct. 22. Leander City Council will make a final determination during the first and second readings of the zoning request on Nov. 19 and Dec. 3, respectively.