Despite a $637,369 overrun in constructing the Belterra Village retail site, Dripping Springs city leaders earlier this month opted to continue its reimbursement contract with the project’s developer.
But the decision to continue the contract, which was made via a unanimous Dripping Springs City Council vote, also means Endeavor Real Estate Group, which developed Belterra Village, will not be reimbursed the amount it overspent.
Endeavor Real Estate Group, an Austin based company, signed a contract with the city that called for the reimbursement of $2,261,480 for development at Belterra Villlage, located along U.S. Highway 290 near the Travis County line. A stipulation of the contract called for Dripping Springs to pay back Endeavor with a portion of sales tax revenue generated at Belterra Village.
However, Endeavor officials said the company spent $2,898,849 to build the retail site. The issue led city leaders to postpone the initial item that would reimburse Endeavour for the project’s construction, according to a News-Dispatch report.
Two months later, the Dripping Springs City Council voted to approve the economic development agreement with Endeavour. However, the city will only be responsible for reimbursing the $2,261,480 as originally outlined in the agreement.
“Endeavour spent $2.9 million when our agreement allowed for a maximum of $2.2 million to be reimbursed. Some of the paperwork was not filed on time and notifications weren’t done in a timely manner. It was more of an oversight than anything intentional,” said Council member John Kroll. “They are a great developer and we are proud of the product they have done.”
Earlier this year, Daniel Campbell, principal at Endeavor, called the lack of communication between Endeavor and the city a mistake.
The agreement with the city was signed nearly eight years ago with the original development group; Endeavour took over the project around four years ago.
Additionally, the original contract did not account for inflation or the rise in construction costs, which were points of discussion for Endeavor.
According to the contract, Endeavor estimated Belterra Village would create around 800 jobs and generate $793,125 per year in new sales tax revenue.
