H-E-B, behavioral health hospital buy land, submit plans to city

Two sets of plans for properties in Longhorn Junction, a 280-acre development at the corner of I-35 and S.E. Inner Loop, are making their way through the city planning process. One plan could bring a new H-E-B to southern Georgetown. The other project, Rock Springs Hospital, a 72-bed behavioral health facility, is expected to break ground later this year.

The development is already home to the Citigroup data center and J Jacobs Construction's headquarters and includes plans for multifamily, commercial and medical developments, and 850,000 square feet of retail.

H-E-B growth

H-E-B officials are working with Longhorn Junction developers Omni Projects and Hall Properties to purchase 21.47 acres for development at the corner of FM 1460 and S.E. Inner Loop.

"This is a big company (H-E-B), and a lot of people are trying to get their stores in their town, and hopefully there is going to be a lot of cooperation," said Bruce Barton, a partner with Omni Projects.

The site, along with the Rock Springs Hospital site, is under consideration for voluntary annexation into the City of Georgetown.

Along with the application for annexation, developers are applying for a development agreement, a comprehensive plan amendment to change the future land use of the property, rezoning, a preliminary/final plat combination and a utility evaluation, and all of that is under review, City Planner Jordan Maddox said. Some of those items will be brought to council and could go through the public process over the next few months with the annexation.

"Our understanding is that this is very early in the process," Maddox said. "Right now we are dealing with the engineering team and land planners to prepare the site for the future."

The council will hear the first reading of the annexation ordinance at its Nov. 13 meeting. If approved, the council would have until Jan. 22 to have the second and final reading, according to city documents.

Barton said he has been working with the grocery chain for more than six years, and the land sale could be completed by the end of the year.

"We don't have a commitment to build on this property or a timeline," H-E-B spokeswoman Leslie Sweet said. "As Georgetown continues to grow, we want to continue to grow with them so we have an eye out for good growth properties in Georgetown."

If built, it would be the store's third location in the city.

"It's a prime site if you think about [the location on FM 1460 and S.E. Inner Loop]," Maddox said.

Sweet said the company considers growth projections when purchasing properties and looks for properties in areas expecting population growth.

Development in the Teravista neighborhood near FM 1460 and CR 111 and the La Conterra neighborhood could be a driver for the grocery store's decision, Barton said.

"Transportation is also another key driver of where we buy parcels," Sweet said.

The city, county and Texas Department of Transportation are in the planning stages to expand FM 1460 and S.E. Inner Loop.

Plans for FM 1460 call for the road to be expanded to four lanes with ultimate design and right of way for six lanes from just north of University Boulevard in Round Rock to Quail Valley Drive. The first phase from just north of Westinghouse Road to Quail Valley Drive could be ready to go to bid in fall 2013 and start construction in 2014, Georgetown Transportation Director Ed Polasek said.

From commercial to medical

Longhorn Junction will also be home to Rock Springs Hospital, a 55,000-square-foot, 72-bed behavioral health facility, located near the Citigroup data center.

The hospital will provide treatment to individuals with mental illness and addiction.

"We anxiously await opening," Chief Development Officer Dan Beuerlein said. "We are ready to become part of the community. It's a service that's very much needed, not only in Georgetown but also around the state."

The facility will be one of the first of its kind in Williamson County, said Barbara Schmidt, vice president of Texas operations for Springstone Health.

"We did some research and found that this was a market that was underserved," Schmidt said.

City Council approved at its Oct. 9 meeting a development agreement with Springstone Health for the hospital, which said the city would provide utilities to the site, Beuerlein said.

"It was kind of a chicken-and-egg thing," Beuerlein said. "The main reason we did the development agreement was because the property was not currently annexed. It was in the [extraterritorial jurisdiction]. The only exception was the sewer capacity we needed."

The agreement allows the development to move forward with construction, which is expected to begin in late December, he said. Annexation of the property could also happen in early 2013, Beuerlein said.

"Annexation will come after the land is purchased and the construction has begun," he said. "We filed a voluntary petition requesting annexation, but [the time frame] is up to the city. We are more than happy to be annexed and more than happy to pay taxes."

Beuerlein said he expects the hospital to be a draw for future medical developments to Longhorn Junction along S.E. Inner Loop.

"There might be future development of more medical properties there along the frontage," he said. "We've already seen quite a few calls from practitioners in the area that want to participate. There has been a lot of excitement about the project."