The Round Rock Transportation and Economic Development Corporation (TEDC) took steps at its meeting Thursday, Sept. 13, to guide a mixed-use development that could occur on the downtown block where the City’s iconic water tower sits.

The TEDC board – comprised of three City Councilmembers and four community members – voted unanimously to purchase four parcels of land adjacent to the water tower. The four parcels would give the City ownership of the entire city block where the tower is located.

Pearlstone Holdings is interested in building a mixed-used development on that block that could include office and retail space, along with a hotel and parking. Under agreements approved by the TEDC board, Pearlstone will assign the contracts to purchase the four properties to the Corporation.

“By taking this action, the City secures substantial influence on the type of development that can occur on this significant block in downtown Round Rock,” said Mayor Craig Morgan, who also serves as TEDC Board President. “We’ve heard concerns about the nature of some of the development in downtown. Through this series of agreements, we can ensure the property around the water tower is developed in a way that preserves the character of our downtown district.”

The TEDC board approved a non-binding memorandum of understanding with Pearlstone that outlines the parameters of the potential development. The MOU states the project could include 76,000 square feet of office space, 9,600 square feet of retail space, a hotel and 372 parking spaces.

According to the MOU, Pearlstone has two years to begin the project pursuant to a development plan that must be approved by the TEDC.

Final agreements would ultimately have to be approved by the TEDC Board, the Round Rock City Council and possibly the Planning and Zoning Commission.

The City and Pearlstone will have opportunities for public input on the project, beginning later this fall.