Round Rock City Council is working with a Dallas-based health care provider to develop the city's first acute-care clinic.

At its Aug. 9 meeting, the council unanimously approved entering into a Memorandum of Understanding—a nonbinding preliminary agreement—with Round Rock RE Holdings concerning development agreements and incentives.

Ben White, Round Rock Chamber of Commerce Economic Development Partnership vice president, said if planning and zoning approval moves forward quickly, an official agreement could be reached in September.

"It is a great project, and it is a needed project," White said. "Right now acute-care patients need to go to Temple or Southwest Austin. [Soon] those patients that need care will be able to get those services in Round Rock."

Acute-care facilities treat patients recovering from short-term illnesses and injuries, and those rehabilitating from surgeries.

A 4-acre tract near the intersection of University Boulevard and College Park Drive has been cited for the development. The proposed site would be tucked between Texas State University and Austin Community College campuses and in close proximity to Scott & White Hospital-Round Rock and Seton Medical Center Williamson.

According to the preliminary agreement, the development would encompass 60,000 square feet and host at least 50 beds. The building is expected to cost $14 million to construct with an additional $4 million worth of equipment and furnishings installed inside. Cornerstone Healthcare Group of Dallas will lease the property and within three years expects to hire 100 full-time employees earning at least $55,000 annually.

In exchange for bringing the development to Round Rock, the city is considering offering an incentive package that includes waiving the first $50,000 of construction, building, impact and permit fees; expediting the permit process; providing a four-year, sliding-scale property tax abatement discount; and reimbursing any rollback property taxes owed on the property.