Hutto City Council approved the annexation, along with zoning and a planned unit development agreement, on the first of two readings at its regular meeting Nov. 18.
The majority of the site will be used for multifamily residential units developed by Aspen Heights, with a mix of attached and detached cottage-style units as well as amenities for those units.
A smaller portion of the site is intended for commercial use.
In the future, Live Oak Street will be extended to run through the site and connect with Ed Schmidt Boulevard.
"We're very excited about the Live Oak extension, to be able to have the connectivity for our residents to be able to enjoy the future development of the Co-Op," Aspen Heights representative Amanda Brown said.
Council will vote a second time on the annexation at its next meeting Dec. 2.