“Tomball is an ideal destination for commercial developers due to its growing population, modern infrastructure, shovel-ready land and strong business-friendly atmosphere,” said Kelly Violette, the executive director of the Tomball Economic Development Corp., in a Dec. 30 email.
“The increasing rooftops from residential development is a major factor driving commercial growth.”
In Tomball alone, Tomball ISD identified over 2,800 future residential lots, as of the district’s spring 2021 demographic report.
As developments add services for the growing number of homes, the Magnolia Place, Magnolia Village and Heritage Green developments are set to have several tenants open on the east side of Magnolia.
In Tomball, the 65-acre Grand Parkway Town Center and a 55-acre proposed development at the Grand Parkway and Cypress Rosehill Road are slated to bring a mix of commercial development.
Rise in retail
In 2019, the Tomball and Magnolia area had 7.79 million square feet of retail space, according to data from Caldwell Cos. By 2022, that figure was 9.06 million square feet—a 16.3% increase.
The amount of sales tax revenue each city is receiving is also rising.
The city of Magnolia saw a 91% increase in its sales tax revenue between 2020-22—from $2.6 million to $4.9 million, according to data from the Texas comptroller of public accounts.
Meanwhile, Tomball saw a 34% increase in its sales tax revenue between 2020-22—from $16 million to $21.5 million.“Our infrastructure investments lead to increased sales tax revenue, job creation and other economic development to support the new businesses and employees attracted to Tomball,” TEDC Assistant Director Tiffani Wooten said via email Dec. 30.
Costco, set to come to the northeast corner of Hwy. 249 and Holderrieth Road in Tomball, projects $651 million in total estimated taxable sales over the first six years it is open, according to its economic development agreement with the city and the TEDC.
“Costco is an extremely exciting project that will bring major economic benefits to our city,” Violette said. “It also provides a retail option that does not currently exist for residents of Tomball. We have received many requests to bring a store like Costco to Tomball, so it was a big win to finally close on the project.”
In Magnolia, the developments located at FM 1488 and Spur 149 are projected to bring Montgomery County Emergency Services District No. 10 $30 million in sales tax revenue over the next 10 years, according to previous reporting.
“New revenue generated from sales and property tax is paramount to [the] ESD’s ability to invest in resources necessary to serve and protect the growing population within our service area,” ESD 10 board President Larry Smith said in a statement.
Tomball-area developments
In Tomball, Costco is planning for a June 2024 opening, Wooten said.
Costco representatives declined to comment, citing company policy not to comment on future locations until they are ready to share details, usually two to three months in advance.
In November, Tomball City Council unanimously approved $6 million in economic incentives for the retailer to help offset infrastructure costs associated with the construction of the site, which Costco projects will be over $20 million, according to the Nov. 7 agenda packet.
Meanwhile, work on horizontal infrastructure, such as a detention basin and utility support, has been in the works for a development near Cypress Rosehill Road and the Grand Parkway, Richard Buxbaum, Radius Development founder and principal, said via email Jan. 6.
Alongside a multifamily housing complex, Chick-fil-A and Whataburger are among the tenants. Buxbaum could not provide a timeline on the tenants.
“I also sold a tract to a day care development group and am working with a coffee user to build on our remaining pad along [the Grand Parkway],” Buxbaum said. “All of these uses will create synergy at the intersection and provide services in the area that people have previously had to drive a distance to find.”
Texas-based grocer H-E-B also owns a 12.5-acre site northeast of the Grand Parkway and Cypress Rosehill Road, according to records from the Harris Central Appraisal District.
To the east, construction is planned to begin in February on the Grand Parkway Town Center, said Andrew Alvis, NewQuest vice president and development partner, in a Jan. 9 email.
In a Jan. 10 phone call, Alvis said Gringo’s Mexican Kitchen is confirmed for the development.
“We’re hoping to start delivering some retail and restaurants in the third quarter,” Alvis said via email.
Magnolia-area developments
In Magnolia, the east side of the city is experiencing the most development with three projects—Magnolia Place, Magnolia Village and Heritage Green—in the works.
At Magnolia Place, H-E-B opened in November with additional tenant spaces following.
Across the street, three multitenant buildings are being built for the 60-acre Magnolia Village development, and multiple single-tenant pad buildings are working on permit submission to the city of Magnolia, Patrick Egan, the executive vice president of development for Gulf Coast Commercial Group, said in a Jan. 10 email. Egan said tenant space should be available in early summer.
Magnolia Village also features a multifamily housing project by Trammel Crow Residential, which is aiming to open in the first quarter of this year, Egan said.
Additionally, Heritage Green, a 36-acre development nearby, has two buildings totaling 20,000 square feet in the works.
“We have seen this area grow and grow,” Steve Gibson, co-owner and partner of Shadyside Land Co.—which owns Heritage Green—said in a Jan. 10 interview.
Gibson said the goal is to finish the two buildings in March. Also a part of Heritage Green, there are more pad sites where tenants such as Wendy’s, Wells Fargo and Starbucks will be located, said Jim Goettee, co-owner and partner of Shadyside Land Co.
“We’re just really excited to be here,” Gibson said.
Cassandra Jenkins contributed to this report.
