Austin Suburb Bee Cave Sues to Prevent Velocis Development

UPDATED Monday, Aug. 19

Progress on a controversial industrial project in Bee Cave ran into a roadblock following a legal dispute with the developer.

In a bold move to protect its small-town charm, the affluent Austin suburb filed an injunction to block construction of Velocis’ West Austin Business Park, a planned 270,000-square-foot development near State Highway 71 and Sweetwater Village Drive, the Austin Business Journal reported. A judge later blocked the request for an injunction.

The lawsuit cites a mix of environmental and zoning concerns. While such a project might boost economic activity, Bee Cave argued that its industrial nature is incompatible with the community’s character and will exacerbate issues like noise, traffic congestion and pollution.

The West Austin Business Park, spearheaded by Dallas-based Velocis, promised to deliver significant industrial infrastructure to the area, including three large buildings and over 80 high-dock doors for commercial vehicles.

The roots of the dispute trace back to a 2015 development agreement between the city and the land’s previous owner, WS-COS Investments LLC.

The agreement, which outlined a vision for commercial or office use, was intended to guide future development even if the property changed hands. However, Bee Cave claims that the project heavily diverges from the agreement’s intent, despite the project not falling within city limits.

Although ownership of the land was transferred to Velocis last November, the city argues that its 2015 terms should still apply. Velocis hasn’t provided a comment on the injunction or its potential impact on the development. Construction started in December, and the requested injunction would have pushed the completion date past the first quarter of next year, as planned.

In another case of cities pushing back against industrial development, Provident Realty Advisors sued the city of Fort Worth over a sweeping zoning change that affects one of the firm’s development sites.

— Andrew Terrell

UPDATE: This story has been updated to reflect a judge’s decision to block the requested restraining order.