Council approves $100M-plus Beltline Road engineering contract and multiple development deals, clears zoning for data‑center projects

Lancaster City Council on July 22 voted to advance a package of transportation and development items that staff said will support growth along Beltline Road and enable planned data‑center and commercial development in the Campus District.

Council approved a professional services agreement with Bartlett & West, Inc. to provide engineering design services for the Beltline Road expansion from Blue Grove to Main Street. City manager staff described the project as taking the roadway from two lanes of asphalt to a four‑lane divided concrete road with drainage and median work; the contract was presented with a not‑to‑exceed amount of $100,104,954.00 and was approved by council after staff said Bartlett & West was the most qualified bidder.

On economic development, the council ratified a grant agreement with Noble Lancaster LLC for up to $80,000 from Type A economic-development sales tax funds to help develop a Starbucks at the southeast corner of I‑20 and North Houston (Sewell) Road. Shane Shepherd, the city’s economic‑development liaison, said the project would require a certificate of occupancy by Dec. 31, 2025 and staff and the Lancaster Economic Development Corporation recommended approval; council approved the incentive.

Staff also presented and council approved several land‑use items: acceptance of public sanitary‑sewer easements related to the Wellington Park North Phase 3 subdivision; two separate development agreements (M23‑35 and M24‑46) that set dimensional, building‑material and landscaping standards for properties on East Beltline Road; and a companion set of planning actions to allow data‑center uses on approximately 248.86 acres on the south side of Beltline Road.

“Planning and zoning recommended approval and staff concurs,” Vicky Coleman, director of development services, said while describing the routing, open‑space requirements and the 20% open‑space set‑aside. Coleman told council the PD (planned‑development) requests would increase the allowable building height from the overlay’s 3‑story limit to up to 110 feet and would control uses and design standards via the PD if council approved.

Developer representative Tim Keith, who addressed council during the public hearings, said the larger site is intended to accommodate data centers and related industrial uses and that the project would add visibility to the community. A neighboring resident who spoke in support said she lived across the street and was comfortable with the proposed height. Another commenter urged council to balance rapid data‑center approvals with housing needs; Tim Keith responded in part that some components for data centers (generators) can take up to two years, tempering expectations for immediate construction.

All zoning and development items on the agenda (including the comprehensive‑plan amendment, the PD ordinance and the related development agreements) were approved by council following staff presentations and the public hearings. Council then recessed into executive session for attorney consultation and later reconvened with no action reported.

Implementation notes: the Bartlett & West engineering work is tied to the city’s certificate‑of‑obligation issuance from November 2023 and staff said the design will include drainage and utility coordination. The Noble Lancaster incentive is tied to the project meeting investment and occupancy milestones specified in the agreement.