PID - PUBLIC IMPROVEMENT DISTRICT
The petition to create the Velocity Crossing Public Improvement District in Del Valle was unanimously approved by the Travis County Commissioners Court February 12, 2019, after its third and final public hearing.
Travis County Government Code Chapter 372 allows counties to create Public Improvement Districts (PIDs) to help spur economic development by providing a means to improve infrastructure and promote economic growth. The PID monetary structure will allow the developer to raise up to $70 million through bonds paid by property owners within the PID who will receive special benefits from the public improvements or services. At the time of bond issuance, 10 percent of the revenue will go to a county affordable housing fund and the remaining funds will be used to secure the public improvements.
TRIPLE FREEPORT ZONE
Velocity Crossing is located in a Triple Freeport Zone. This zone was established to allow businesses to not pay taxes on inventory that leaves the state within 175 days. Freeport property includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating.
The site is very developable as it is relatively flat with few trees and no known environmental issues. It is located in the City of Austin’s Preferred Development Zone and is on the “going home” side for retail users. This is an important distinction as the submarket is in desperate need of grocery, medical and other related services. All utilities are on site or adjoining the property. Of all four tracts located at the intersection of SH 130 and Highway 71, Velocity Crossing is the only property that has direct access to FM 973.
The southeast submarket is undergoing substantial growth with over 20 subdivisions and projects being planned on Highway 71, SH 130 and Hwy 183. The southeastern areas of Austin provide sustainable housing priced to start ± $200,000, which will continue to attract residential growth. A Q3 2016 housing report from Metrostudy is tracking over 55,000 residential units approved for development in the Southeast submarket over the next 10 years.
According to TxDOT, Highway 71, Ben White Expressway and SH 130 are the only underutilized transportation arteries in Travis County. Combined, these factors produce affordable housing and employment centers that are community sensitive and 15 minutes from downtown on uncongested thoroughfares. Velocity Crossing is positioned to take advantage of area growth and provide regional and community employment opportunities.
H-E-B purchased 17.2 acres of land from Velocity Crossing at the southeast corner of FM 973 and Highway 71 on December 18, 2016, adding to its development pipeline in growing Central Texas. In November 2015, Austin Community College purchased an adjacent 124-acre site along FM 973 south of Velocity Crossing.