A Dallas-based private equity real estate investor has suggested mediation to settle complaints about its West Austin Business Park project.
Velocis’ 270,000-square-foot industrial development, near State Highway 71 and Sweetwater Village Drive, has drawn the ire of two neighboring Austin suburbs, Bee Cave and Lakeway, which have sued in an attempt to halt the project’s construction, the Dallas Business Journal reported.
The dispute lies in a development agreement with the land’s previous owner, WS-COS Investments LLC. The 2015 agreement, which Bee Cave officials assert should govern current and future use of the site, restricts development to commercial or office purposes.
Bee Cave argues that Velocis’ industrial plans are incongruent with this agreement, citing concerns about noise, pollution and traffic. Lakeway joined Bee Cave’s lawsuit on Aug. 19, objecting to the project’s proximity to its residential areas.
Bee Cave Mayor Kara King said she had not been informed about the project until after construction had begun. King said she only discovered the project was underway by “watching it go up,” the same way as residents did.
Bee Cave residents have argued the project should be halted because it is not appropriate for the area. Despite pushback from the community, Velocis, led by co-founder and managing partner Fred Hamm, remains optimistic about the project’s future.
“Velocis strongly believes it will prevail if forced to litigate the city’s claims,” a company spokesperson said. “Velocis remains focused on working constructively with the City of Bee Cave to achieve a successful outcome for all parties and has proposed that both parties participate in a collaborative mediation as the preferred path forward.”
Since the site is in Bee Cave’s extraterritorial jurisdiction, Velocis has claimed that it is not bound by the city’s zoning regulations. In an Aug. 13 response, Velocis asserted that its project meets the current standards for commercial use and that it had informed Bee Cave of its plans prior to purchasing the land in 2023.
Velocis, which began construction in December, maintains that the West Austin Business Park is designed to serve businesses seeking proximity to western Austin communities, not heavy-distribution tenants. No leases have been signed for the project so far. KBC Advisors is listed as the broker, according to an online brochure.
— Andrew Terrell
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