Round Rock Approves Mixed-Use Zoning for E. Palm Valley Lot, Historic Tax Exemptions

The Round Rock City Council on Thursday gave initial approval to rezone a half-acre land near E. Palm Valley Boulevard to allow for redevelopment.

The first ordinance would update the city's future land use map to amend the property's designation from residential to mixed-use residential, while the second will rezone 0.469 acres of property at 802 E. Palm Valley Blvd. from general office to mixed-use residential.

Director of Planning and Development Services Brad Dushkin said the existing zoning allowed only day cares, offices, medical and cosmetic services and veterinary clinics. The proposed mixed-use, or MU-R, zoning would permit a broader range of uses, including restaurants, limited retail and indoor entertainment. The Planning and Zoning Commission unanimously recommended approval of both measures in June.

The applicant, AASRA LLC, said that with the new property designation and rezoning, they plan to build a small restaurant, a grocery store and beauty services upstairs. A 6-foot masonry fence would be required along any property line adjacent to a single-family residential lot.

Dushkin said the new zoning gives more freedom to the applicant to build a larger building and choose where to place a parking lot.

"The MU-R district allows that building to be placed closer to the front, but also could be a larger building as well," Dushkin said. "Then you have other areas around that to work with for the parking, so it could be behind or it could be to the side."

The council unanimously approved the two ordinances on first reading. A second reading is expected at a future meeting.

Another nearby property owner expressed interest in rezoning their property to mixed-use and Mayor Craig Morgan said it would be reasonable to have other lots in the area be rezoned.

"It makes sense to have all of that (area rezoned to) MU-R at some point," Morgan said.

Dushkin said future rezoning of more properties in the area is possible if more property owners submit applications, leaving the potential for further redevelopment.

"In this case, we have a submittal cycle, so we would be willing to meet with this potential applicant and facilitate their rezoning as well," Dushkin said.

The council also approved an ordinance granting partial property tax exemptions for 51 properties throughout Round Rock, totaling over $163,000 as part of a historic tax exemption city program that encourages owners of historic properties to maintain and repair their structures regularly.

The program is intended to preserve historic buildings across the community and prevent the deterioration of historic resources. It allows approved applicants to receive a 75% exemption on the city portion of property taxes, with an expectation that those savings be reinvested in property maintenance. The program also gives Planning and Development Services staff the opportunity to provide property owners with informational resources on how to maintain their property.

The city received 52 applications in total for the program and the majority of applicants upon inspection, qualified for the tax exemption. Dushkin said there are 77 properties with historic overlay zoning that could have applied for the tax exemption and out of the applications, only one did not meet the requirements. Twelve of the properties set to receive the tax exemption are residential and 39 are commercial properties.

The council also unanimously approved this ordinance on first reading, with a second reading a a future meeting.