Posted: Fri, 19 Feb 2010 06:49 AM - 12,976 Readers

By: Joseph M. de Leon

Four-phase project could mean 1,200 permanent jobs, up to $5 billion for city

The first phase of a $360 million water resort near the intersection of FM 1431 and Parmer Lane is expected to open for business in 2012.

Representatives from Schlitterbahn Waterparks, which owns four other water parks, announced Jan. 28 during a city council meeting that the Cedar Park project would include a water park, river walk, hotel, convention center and retail space that will eventually cover 96 acres. The resort in Cedar Park will be nearly twice the size of the New Braunfels water park.

The project is a joint effort between developer Rick Redmond, who owns Volente Beach Waterpark on Lake Travis, and owners of the New Braunfels–based Schlitterbahn.

Jeff Henry, CEO and son of the founder of Schlitterbahn, said water flowing through the Hill Country inspired the concept for the water resort in Cedar Park.

“We will highlight the importance of water conservation and responsible water use at our resort in Cedar Park,” Henry said. “We hope to be an example for what’s right about development.”

Emphasis will be placed on sustainable building practices, he said. For example, much of the resort will be built with reclaimed wood and on-site drainage will be added to the park’s recycled water system.

During market research, Henry learned that perceived traffic jams in downtown Austin kept many people in the northern part of Central Texas from visiting the water park in New Braunfels. A location north of Austin could tap into that market and prevent competition from hurting business in New Braunfels.

“We saw that family entertainment in the Austin area is lacking, so I can think of no better business to bring into Cedar Park than Schlitterbahn,” Henry said. “My purpose in this life on earth is to bring to people quality entertainment and bring families together.”

Concern for quality of life

During the meeting in which council members discussed what incentives the city would offer Schlitterbahn, about a dozen residents from Round Rock and Cedar Park voiced their concerns about increased traffic and water shortages related to the project.

Russ Barnard, a Round Rock resident who lives about a half mile away from the project, said traffic in the area is congested and is about to get worse.

“Cedar Park is already touting the grand Schlitterbahn, but the residents surrounding the amusement park are the ones that will be paying the price, whether they realize it or not,” he said.

Jeffrey Siebert, director of communications for Schlitterbahn, said over the years the company has refined its approach to building water parks.

Schlitterbahn expects 3,000 visitors per day in Cedar Park, which Siebert estimates to be about 100 cars per hour between 10 a.m. and 8 p.m. and avoids rush hour.

“Everyone anticipates that it’s going to be just chaos coming in and out of the park,” he said. “The truth of the matter is that we will have a steady flow of traffic that avoids peak drive times.”

About 9,000 people a day visit Schlitterbahn’s water park in New Braunfels during the summer, Siebert said. The road infrastructure in Cedar Park is better than in New Braunfels, he said, and will improve after planned roadwork.

City Manager Brenda Eivens said adding dual left turn lanes on FM 1431 into the water resort before it opens is being considered. She said a long-term plan would involve pooling city, county and state money with eventual hopes to widen FM 1431 to six lanes.

To keep noise from disturbing neighbors, the water park will be tucked behind retail and hotel buildings, Siebert said. A privacy fence and landscaping will also dampen sounds.

“We don’t have any big motors like roller coasters clicking or clacking, and the site design will help reduce the ambient sound that could escape from the area,” he said. “We try to make sure to be as quiet as possible because we want everyone to enjoy their summer days as well.”

Henry said water will be recycled at the resort, which would use less water than if houses were built on the same area of land. Company projections estimate the resort would use about 20 percent less water than a single-family development and about half of what an apartment complex would use.

Economic impact

Phil Brewer, Cedar Park’s economic development director, said the water resort is expected to bring 739 construction jobs and 1,200 permanent jobs to the area.

The project could generate between $2.5 billion and $5 billion for Cedar Park over the next 30 years, according to a city economic impact analysis. The water resort is eligible for a $6 million public infrastructure reimbursement and up to $86 million in economic incentives.

Brewer said the incentive program will protect the city. For example, the city will only use money for the incentive that is generated from taxes Schlitterbahn pays, and there is a cap on how much the city will pay.

“This is a classic, creative public-private partnership which will develop a project that will yield both economic and tourist-related benefits for Cedar Park for many years to come,” Brewer said.

Incentives encourage water resort project

The Cedar Park Community Development Corporation (4B) board passed measures to facilitate preparations within Cedar Park for the water park construction.

Plan for public infrastructure:

• $6 million for the construction of public infrastructure
• Project includes improvements to roads, natural gas, water and sewer to prepare for phase one
• Money comes from a 1 cent sales tax voters approved in 1999 that is split between Cedar Park’s 4A and 4B corporations
• Payment not released until phase one is open for business
• Incentive paid in two installments: $3 million when park opens, second payment of $3 million the following fiscal year

Economic development agreement:

The Cedar Park City Council passed an economic incentive program to encourage the construction of a 96-acre water resort.

The 10-year agreement with Schlitterbahn authorizes the City of Cedar Park to offer incentives to make sure each phase of construction is finished on schedule, bases payments on performance and limits the amount of money Schlitterbahn may receive.

Incentive money will be disbursed only from sales, property and hotel occupancy taxes Schlitterbahn pays to the city. If work on phase two starts within 24 months of the completion of phase one, the agreement extends an additional 10 years. If any milestone is not completed, the incentive agreement terminates.

Phase one is eligible for up to $15 million in the next 10 years if Schlitterbahn:

• Improves public infrastructure
• Build a 16-acre water park and skydive simulator
• Completes by May 30, 2012
• Invests $75 million

Phase two and three are eligible for up to $31.2 million for the duration of the agreement if Schlitterbahn completes the following milestones:

• Builds a 230-room hotel, 35,000 sq. ft. of retail and restaurant space, a conference center with 30,000 sq. ft. of meeting space and a river walk system
• Starts construction within 24 months of the opening of phase one
• Invests $125 million

Phase four is eligible for up to $40 million for the duration of the agreement if Schlitterbahn completes the following milestones:

• Builds an additional 125,000 sq. ft. of retail and restaurant space, expand one or more of the attractions built in the first three phases
• Starts construction within 48 months of the completion of phases two and three
• Invests $160 million

Source: Schlitterbahn Waterparks