The City Council voted unanimously Thursday, Nov. 9, to approve a memorandum of understanding (MOU) with Mark IV Capital, which plans to build a master-planned, mixed-use development in south Round Rock. Mark IV is planning to invest $200 million to build 1 million square feet of commercial and residential development.
The development, named The District, will be located on approximately 65 acres at SH 45 and North Greenlawn Boulevard (just east of the Round Rock Crossing shopping center, home to Target and Best Buy). Work is expected to begin within 12 months.
“We are thrilled to partner with Mark IV on the development of The District in Round Rock,” Round Rock Mayor Craig Morgan said. “This is exactly the type of project we need in this high-growth area.”
Mark IV is a privately held real estate firm founded in 1974. The company purchased its first building in Round Rock, the Summit at La Frontera, in 2013, and is currently under construction on a sister building, the Summit II at La Frontera, which is expected to be complete in early 2018.
Through the MOU, the City of Round Rock and Mark IV have agreed to work cooperatively in good faith on future agreements. The City intends to create a public improvement district (PID) on the property to fund some of the required public infrastructure. Per the MOU, the PID would fund up to $10.8 million in public infrastructure such as streets and utility lines. The PID would be funded by a loan from the Round Rock Transportation and Economic Development Corporation and be repaid through taxes generated by the development. The MOU also allows up to $4 million of the loan to be waived if certain development investment and timelines are met.
The final agreement is expected to be voted on in early 2018.
“Our intent is to provide a mixture of high quality office, residential, hospitality, and retail uses to create a dense, mixed-use environment, a first for the City of Round Rock,” said Paul Cate, Mark IV’s Chief Executive Officer. “The District is the natural location for the region’s next major business hub. Its location at the intersection of I-35 and SH 45 easily connects to the core of Austin, while also providing phenomenal access to the fast-growing cities in north Austin.”
“This type of mixed-used development is wonderful for Round Rock and will be a tremendous addition of Class-A office space to our highly-visible Fortune 500 corridor,” said Ben White, the Chamber’s Vice President of Economic Development.