Roadwork underway on Carl Stern Boulevard extension project in Hutto

Haas & Haynie is the developer behind the project, and real estate services company CBRE is representing the firm in Hutto. For the first phase of construction, the city will pay the developer a maximum of $5 million, which the city has five years to pay back, Grau said.

"We placed incentives in the agreement for them to actually develop the property," City Manager Karen Daly said. "I would hope that they will be able to attract some major retailers and some other businesses that would fit and do well with the visibility of the property."

The Carl Stern extension will provide another outlet to the toll road for area residents to bypass crossing the railroad tracks to the north along Hwy. 79 and road construction on FM 685 that will last until late 2016.

Construction of a senior housing development called The Trails at Carmel Creek, which will be the first business located in the Carmel Creek development, spurred the beginning of construction of the Carl Stern extension, Daly said.

The Trails at Carmel Creek will contain 61 apartments for people age 55 or older, according to DMA Companies, which is developing the senior homes.

Daly said the developer of Carmel Creek will have flexibility in what businesses and types of residences are built at the property.

Grisham said the city recently completed a grocery store analysis that could aid in bringing a supermarket to town. A grocery store is a top priority for the city, he said.

Grisham said H-E-B estimated it could open a location in the city in 2016 or possibly sooner. The city could also land a smaller grocery store in the interim, among other options, Grisham added.

"Certainly the [Carmel] property could make sense for a grocery store," he said.