Construction on a logistics warehouse development near Bee Cave resumed this week, after a court’s temporary ruling that denied the majority of the city’s claims against Velocis.
The city of Bee Cave sued to stop the West Austin Business Park in August, and a Travis County judge temporarily granted the city’s contention that the development violated noise restrictions.
The interim order denied all of the city’s other claims for the injunction. The city had claimed the project posed broader environmental risks and was incompatible with zoning. It also claimed the development diverged from a 2015 development agreement for the site that only allowed commercial or office development.
The court also denied Velocis’ motions to strike or dismiss the suit, setting a trial date for Aug. 18.
The development, 20 miles from downtown Austin near State Highway 71 and Sweetwater Village Drive, will deliver three industrial buildings spanning 270,000 square feet across 23 acres.
Velocis resumed construction the same day the court order was filed, saying it would comply with noise requirements outlined in the 2015 agreement and would continue working to avoid a trial through mediation. The company “strongly believes it will prevail” if the trial cannot be avoided, a spokesperson said in August.
Velocis’ “claimed desire to seek a quick resolution to the city’s concerns is contradicted by a history of skirting the city’s oversight,” the city said in a news release.
The development is being leased by KBC Advisors. It is pursuing tenants such as residential showrooms, hospital and medical supply companies, food and beverage storage and indoor sports facilities, according to the property’s website.
Residents flocked to protest at the site in the fall after the city of Bee Cave filed its injunction to halt construction in August. It said the complex was “inappropriate” for the Austin suburb and would bring noise, traffic congestion and pollution.
City inspectors found it posed serious environmental risks, saying the developer failed to get authorization from the Lower Colorado River Authority for water drainage. Runoff is illegally flowing into Little Barton Creek, the city said in a Nov. 1 filing.
Velocis and KBC Advisors are on the offensive, saying the public’s opposition to the industrial warehouses “arose and was accelerated due to misinformation being spread in the community, on social media and by elected officials,” its website said.
The development is not subject to Bee Cave’s zoning ordinances because it lies in its extraterritorial jurisdiction, the website reads in a list of “Myths from Social Media and City Statements.” It also refuted claims the project was being built with no government oversight, saying Travis County officials inspected the site “regularly,” while the city of Bee Cave “did not want oversight over the land because it did not have the staff to oversee it,” it said.
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