On Sept. 12, Cedar Park unveiled a $2 million economic development agreement intended to spur activity outside the Cedar Park Center.

Under the terms of the proposed 10-year incentive deal, Hicks Cedar Park LLC—the developer of approximately 17 acres of city-owned land outside the arena—each year would be paid 80 percent of new property taxes created on the now-vacant land. Hicks would also receive 80 percent of the 1 cent sales tax generated within the tax increment reinvestment finance zone, or TIRZ, which would otherwise go to the general fund.

The deal would end once payments to Hicks total $2 million or 10 years has passed, Assistant City Manager Josh Selleck told council.

"The economic development agreement is really that simple," he said.

Selleck told Community Impact Newspaper in August that the city's goal is to promote development in the zone—located at the northwest corner of Toll 183A and New Hope Drive—that complements the existing $55 million event venue.

"[The TIRZ is] a tool that allows cities to work to expedite the development of land and increase the public benefit of those developments through the use of an economic development agreement," Selleck said at the time. "It captures the new incremental city tax revenues that are generated within the zone. So whatever is developed, it uses those revenues or some portion of them to fund the incentive."

During the public hearing—the first of two before the deal can be formally approved, Councilman Mitch Fuller expressed enthusiasm for the incentive agreement, suggesting it could entice a developer to build Cedar Park's first full-service hotel. That would increase Cedar Park's likelihood of hosting the American Hockey League all-star game, he said.

"I think we've always had big dreams of what we wanted this to be," Fuller said. "This will cause other dominoes to fall, so let's make it happen."

At the same time council is considering the economic development agreement, city staff is also working to rezone the area outside the arena to make it compatible with the surrounding uses. Senior Planner Amy Link told council that the proposed zoning would prevent bars on the site's northern half, which is immediately adjacent to the Block House Creek subdivision. A 50-foot landscape buffer and 6-foot masonry fence would be added to further shield the residential neighborhood from the anticipated commercial development, she said.

The zoning would also require buildings to be built in such a way to attract pedestrian activity, Link said. Parking would be encouraged in the back of businesses instead of the front, she said.

Both the rezoning and proposed incentive deal will come before council once more Sept. 26 before becoming official.

"This is just the latest step in what's been a lengthy but necessary process," Mayor Matt Powell said. "Every time we hit one of these milestones, I'm glad to put it in the rear-view mirror because the stuff ahead gets much more exciting."