Family-friendly retail, restaurant development sets eyes on Buda

BUDA — After meeting up with developers, local business owners, investors and community members over the course of several months to discuss the growing Hays County area, Tim Dowling with Beyond the Move Realty found a need for a more family-friendly retail and restaurant space in the city of Buda. And the groundwork and planning for the project have already begun. Located at 1575 FM 967, the 18-acre commercial retail development will create an estimated 50,000 square feet of retail and office space, as well as 5,000 square feet of outdoor areas designated for pickleball, sand volleyball courts and a playground. The project will activate the west side of Buda with restaurants and professional offices, while also creating a public park that will connect walking trails in neighborhoods. Dowling is partnering with Richard Veregee and Josh Bumb, who both live and have developed and operated businesses in the area, including Moontower Saloon in South Austin, Main Street Pizzeria and Beer Garden in Buda and Nate's at Buda Mill and Grain. They are also teaming up David Morin, Frank Navarro and Ryan Othman of MNO Partners. The ultimate goal for the project is to create a gathering spot where everyone, young and old, can come together. “We decided, ‘Hey, why don’t we develop something that is what the community needs,’ which is some retail type things, small medical offices like a dentist or a doctor's office. And then, at the same time, traditional retail could be an ice cream shop, a morning breakfast place [or] a coffee shop and then along with the restaurant that the community needs,” Dowling said. “The one thing Buda doesn’t have really is a family-friendly type place where the family can be comfortable and the kids can go run around like crazy.” The idea for the project also sparked from Dowling’s meetings with the Hays County Commercial Real Estate Group, which brings together like-minded investors, developers, community members and others who want to take an active or passive role in growth of the area. The group is for those interested in sharing and learning about growth opportunities in Hays County, with a focus on commercial real estate development. “I created a local meetup about two years ago in Buda, and it was focused on one thing, and that was to talk about commercial development. My goal was to get the city involved, so the city could come say, ‘This is what we want.’ I don’t know how it all played out, but it was perfect. Timing was perfect. Everything was perfect,” Dowling explained. “We really kind of were able to build a relationship and dig into what were the goals [and] where were the holes? This is actually one of those projects that's going to be filling a hole that they are really focused on.” Incentives for the project have already been approved by the Buda Economic Development Corporation, but that agreement still has to go before the city council. However, the project was discussed solely in executive session at the July 16 Buda City Council meeting; no action was taken once council went back into open session. Details of the incentive agreement are below. • 50% property tax rebate for five years from the city or up to $400,000 total ($80,000 annually) • 50% retail sales tax rebate over 10 years from both the city and EDC of up to $1 million (or $100,000 annually) • $1.1 million fee credit for the park to be completed and made publicly available The total cost of the project is estimated at $27 million; there will be no costs going to the city, Dowling said. It is estimated that the property tax projection will be $100,000 annually after completion and the sales tax projects will be $275,000 annually. And the current timeline is for developers to break ground in April 2025 for phase one. “We're in what they call the rural overlay for Buda and so everything we're doing is within the bounds of it. So, we don't actually require any approvals. The only thing we have to get approval for is what we're working through is this incentive plan because we are going to be donating that land for parkland, so we are trying to find a way that benefits everybody involved,” Dowling said. “But, in regards to actual physical approval, it’s just the traditional permit process. We're already in phase one. We finished first round comments [and] we're about to submit for second round comments. We're hoping to push dirt by the beginning of this next year and have some shell spaces possibly by the middle of next year to start being able to have tenants come in and do what their finish outs are required.” Dowling and his team are working with Resolut RE to find tenants to fill the spaces. The Hays County Commercial Real Estate Opportunities Group meets the second Tuesday of each month at 8:30 a.m. at the Buda Welcome Center. More information can be found at www.meetup.com/hays-county-commercial-real-estate-meetup-group . Buda City Council meets next at 6 p.m. on Tuesday, Aug. 6.