Cedar Park signs agreement with Schlitterbahn

By Joseph M. de Leon Friday, 29 January 2010

CEDAR PARK — Day-trippers and vacationers will soon be able to spend their time lounging and playing in the water in Cedar Park.

Cedar Park City Council voted unanimously Thursday to approve an incentive program to encourage New Braunfels-based Schlitterbahn Waterparks to build a $360 million water resort near the intersection of RM 1431 and Parmer Lane on the city’s eastern edge, which borders Round Rock.

Cedar Park Mayor Bob Lemon said the water resort will provide an economic boost to Cedar Park and is expected to bring 739 construction jobs and 1,200 permanent jobs to the area.

“This resort will add to Cedar Park’s growing entertainment options for family fun, continuing the vision of the Cedar Park community being a family-friendly entertainment destination,” Lemon said. “It’s very exciting to see a plan like this come to Cedar Park—we’ve been planning for this for a long time.”

The 96-acre resort will be built in four phases with a 16-acre convertible water park set to be ready to open by May 2012. The first phase, estimated to cost $75 million, will also include other attractions, such as a ride that simulates skydiving.

Phase two and three of the project, which will be built at the same time, are expected to cost about $120 million. The project will include a 230-room hotel, 45,000 sq. ft. of retail space, a conference center and a river walk system to connect the various attractions. Construction on phase two and three must start in May 2012 to qualify for the incentive.

The final planned phase of the project could cost $160 million and will include 125,000 sq. ft. of retail and restaurant space and the expansion of one or more of the attractions built in the first three phases of development, depending on which components are most successful. Work on the final phase must start within 48 months of the completion of phases two and three to qualify for the incentive.

The project is expected to generate between $2.5 billion and $5 billion for Cedar Park over the next 30 years, according to an economic impact analysis commissioned by the city. The water resort is eligible for $6 million in public infrastructure reimbursement when certain performance measures are met.

Phil Brewer, Cedar Park’s economic development director, said the incentive program is designed to protect the city. For example, the city will only use money for the incentive that is generated from taxes Schlitterbahn pays. Each phase must qualify for incentives on its own and there is a cap on how much Schlitterbahn can receive.

“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.

Residents sound off

The Cedar Park Community Development Corporation (4B) board met in a special session about an hour before council and passed unanimously measures to facilitate preparations within Cedar Park for the water park construction.

The board approved a $6 million incentive to improve the city’s infrastructure, including road, water and sewer improvements, near the planned water park site.

Not everyone welcomed the project. During the meeting, about a dozen residents from Round Rock and Cedar Park voiced their concerns about increased traffic, water shortage and overspending related to the incentive.

About six attendees interrupted the board meeting, calling out their objections to the board as members discussed the details of the incentive.

Two police officers arrived during the board meeting to keep order. Later during council, police escorted resident Jim Dillon away from podium after repeated warnings for speaking out of turn against the incentive offered to Schlitterbahn.

Other attendees, including residents from Cedar Park, Austin and Leander, spoke in support of the water resort.

Resort concept

Jeff Henry, the son of the founder of Schlitterbahn, told council the idea for the famous water park in New Braunfels was conceived during a family trip to Germany as a tribute to the family’s heritage.

“What we were doing in 1979 was building a place where people can relax and vacation,” he said. “Every mistake you could make in building a water park from roads to parks can be seen in New Braunfels, but we’re still the number one water park in the U.S.”

Over the years, Henry said Schlitterbahn has refined its approach to water parks and currently owns four, including Schlitterbahn Vacation Village—a $749 million retail entertainment center in Kansas City made up of multiple shopping, dining, lodging and entertainment venues.

Henry said traffic in and out of the park would be a steady trickle, nothing like the traffic gridlock during a football game or concert in which all attendees arrive and leave at the same time.

The concept for the water resort in Cedar Park is about water flowing through the Hill Country. Henry said the time he spent in San Antonio during the 1968 World's Fair as a child inspired him to incorporate a river walk into the resort.

“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.”

Water is recycled at the water park and the resort would use far less water than if houses or apartments were built on the same area of land, he said. Emphasis is placed on sustainable building practices. For example, much of the resort will be built with reclaimed wood and onsite drainage will be added to the park’s recycled water system.

“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.”

Read related content on Community Impact Newspaper: Schlitterbahn announces plans to build resort in Cedar Park and Schlitterbahn water park resort will bring 1,000 jobs and cost $360 million.