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EDC reports rail study closed, Misburn Drive cost estimate and possible bond financing
Summary
The Copperas Cove Economic Development Corporation told council it has closed grant checklists for a rail study, expects to close on a VA-related parcel in July and has an opinion of probable cost of roughly $5.2 million (with a higher estimate mentioned) to build infrastructure on 23 acres; the EDC is exploring bond financing options that would be EDC obligations, not city general-obligation debt.
Fred Walch, executive director of the Copperas Cove Economic Development Corporation, gave a detailed update to the City Council on May 5 about multiple EDC projects and financing options.
Walch reported the rail study grant has completed required closing steps and said a follow-on engineering design study is anticipated to design an access-control point tied to rail access. He said an Economic Development Administration (EDA) grant for work on Misburn Drive has produced an opinion of probable cost; staff estimates the work to serve the 23 acres the EDC acquired will be in the range of $5.2 million, though Walch also referenced a larger "probably close to about $7 million" figure during discussion as a potential full-project scope.
Walch told council the EDC is exploring financing, including tax-exempt bond options, and said such bonds could be structured so the obligation rests with the EDC rather than the city's general-obligation capacity. "If we issue a sales tax bond, it does not impinge the bonding capacity of the city; the obligation is on the EDC," he said. Walch also offered a rough per-square-foot estimate for infrastructure work: "it's costing us about $3 a square foot to put that infrastructure in on the available land," which he said was based on preliminary calculations.
Walch said the EDC has received interest from potential users for the parcels along Mashurn Drive, including inquiries for a roughly 168,000-square-foot flex building or multiple smaller developments. He said the VA-related "Project Hometown Hero" parcel is on schedule to close in mid-July and that the EDC will return to the council if bond financing or other city concurrence is required.
Walch noted the EDC has paused a planned EDC office building to prioritize rail and Misburn Drive work and that the EDC board will review its budget in coming weeks with proposed capital projects amounting to roughly $9 million on its plan. He said the downtown business improvement grant program issued several matching grants this year and staff continue to pursue marketing and site-selector outreach.
The council received the report; Walch did not request an immediate council vote but indicated follow-up actions (bond counsel analysis, financing decisions, and potential city approvals) will be necessary before major project work proceeds.
