The Buzz About la Frontera

Issues 6-10

Issue 6 June 17, 1999

La Frontera Utility Deal Featured
in Wall Street Journal Article
Excerpted from The Wall Street Journal,  Texas Journal,  June 16, 1999
(Copyright (c) 1999, Dow Jones & Company, Inc.)

TXU Corp. has launched an important test of how it will respond in the soontobe competitive electric marketplace. The Dallas-based utility, formerly Texas Utilities Co., has struck a deal to provide a comprehensive package of services electricity, gas, telephone, cable and security to tenants of a 328acre, business and residential development called La Frontera on the fastgrowing northern border of Austin.  The deal ... is the first such comprehensive "bundling" arrangement for the utility, and analysts say it's one of the first in the U.S.

Bundling enables TXU to sell services such as phone, long distance and Internet access that provide higher profit margins than gas and electric rates.  That is important, since deregulation freezes rates for utilities such as TXU for the next 2 years. Just as important, it is seen as a way to woo customers with the convenience of allinone service.

La Frontera ... is to be the first test of its bundling strategy. If successful, the strategy could be made available for all of TXU's retail customers.

The development in which Ed Bass of Fort Worth's Bass family is the majority investor lies along Interstate 35 on the border between Travis and Williamson counties. Both counties are among the fastest-growing in the state, and their border has become a hightech corridor.

TXU has agreed to bear the cost of building the utility infrastructure -- laying gas, electric and phone lines -- for the entire development, which will combine high-end commercial, retail and residential tenants. The project's first 112 acres are expected to be completed early next year. TXU doesn't get exclusive utility rights in the project, but its services will be part of the developers' marketing pitch.

For partners in the La Frontera development, the arrangement guarantees convenient access to a full range of services for their tenants. It also limits the amount of construction; since TXU will provide all the services, it will lay its fiberoptic, electric and gas lines in the same trench. "We want to bring in all the services at the beginning," says Don Martin, an Austin developer and publicrelations executive who is one of La Frontera 's three managing partners. "It's a onepoint solution."

Since 1997, TXU has bought naturalgas concern Enserch Corp. and its Lone Star Gas division, and a local telephone company, Lufkin-Conroe Communications, which it has developed into a regional carrier with highspeed Internet access, networking and Webdesign capabilities. TXU also owns 20% of the Texas operations of wireless provider PCS PrimeCo.


Issue 7 August 17, 1999

Comprehensive Road Network Now Under Construction
This week, heavy road equipment and crews arrived on site and construction officially began on several million dollars worth of major roads at la Frontera .  The roads are being built by the developer and are designed to complete a comprehensive roadway network in and around the la Frontera area.  These new roads will also help provide significant area roadway improvements and alternate routes around the busy IH-35 / FM 1325 intersection in addition to serving as the basic network of boulevards and parkways through the site.

La Frontera is a 328-acre master-planned, mixed use development in Round Rock and located along the Williamson Country / Travis County border.  As part of the overall master plan, internal roadways are to be built before and/or during the construction of the various sites uses – retail, restaurants, office, and hotel – and before they are open for business.

Road work began this month on most of the major internal roads including Kouri Avenue, the north extension of Parker Avenue, Sundance Parkway which connects to IH-35, and the new extension of Hester’s Crossing Blvd from IH-35 through to Country Road 172.  Four-lane arterials, parkways and landscaped median boulevards are planned for various parts of the roadway network. 

These primary roads are expected to be completed in the first quarter of 2000.  With the extension of Sundance Parkway and the construction of La Frontera Blvd, scheduled for completion in the Spring of 2000.  RGM Construction Co. was recently awarded the bid for on-site roadway improvements


The Broussard Group Will Handle Project Landscaping
The Broussard Group (TBG) of Austin has been hired to oversee the la Fontera landscape plan and to design the landscape elements.  TBG will design project entry signage, pavement details, pedestrian features, open green spaces and the construction of a 5-acre lake at the center of the office campus area of the development.  Brian Ott, of TGB, will serve as the overall project landscape manager.  The Broussard Group has extensive experience in working with large, master-planned commercial developments.




Issue 8 September 17, 1999

Construction Begins on 800,000 S. F. Retail Portion of La Frontera
Cleveland, Ohio based Developers Diversified Realty (NYSE:DDR) and David Berndt Interests of Irving, Texas, joint venture developers of La Frontera in Round Rock today announced that the open-air retail center located at the intersection of Interstate 35 and State Highway 1325, has begun construction and will be open by Fall 2000.  La Frontera in Round Rock is a $70 million shopping center development that will be a boost for the local economy, while providing Round Rock and surrounding communities with an upscale shopping, dining and entertainment facility.

The project announced today is the first retail portion of a 328-acre master planned retail and business community located along the Williamson County and Travis County border. 

The 800,000 square foot retail development will be home to an array of upscale specialty stores, entertainment venues, restaurants and anchors.

Not only will La Frontera in Round Rock create more than 2,200 full and part-time jobs for the people of this community,” said Eric Mallory, Vice President and Director of Development for Developers Diversified, “but it will also generate more than $2.7 million in additional tax revenue for the city, schools and municipalities.”

“In addition to the jobs created and tax revenue, the development will also ensure that the residents of Round Rock can eat and shop right here in our own community,” added Round Rock Mayor Robert Stluka.

“We are delighted to bring Round Rock some of the country’s most exciting retailers that aren’t currently in the market,” said David Berndt, DBI principal. “The national and regional retailers, restaurants and entertainment venues that we are lining up will serve Round Rock and the surrounding communities for years to come.”  Additional retail and restaurant users will be announced shortly according to Berndt.

Developers Diversified Realty Corporation currently owns and manages 197 shopping centers in 38 states totaling 44.8 million square feet of real estate.  You can learn more about DDR on the internet at www.ddrc.com.  DBI is a real estate development company located in Irving, Texas.


Issue 9 October 19, 1999

La Frontera Project Update

Each few weeks The Buzz has focused on detail items about La Frontera including road construction updates, land sales, utilities, demographics and the like. This issue is intended to be a more general look at the status of La Frontera . . . from a big picture perspective. We hope it will be helpful to you:

Expedited Approvals/Construction Starts

  • All final zoning approvals are now in place with approvals for up to 4 million s.f. of office development.

  • A preferred development zone location, the lack of sensitive environmental features, and Round Rock zoning means that no additional site plan approvals are necessary to build at La Frontera.


  • A building permit can typically be issued in 60 days.

    • Internal Road Infrastructure

    All project roads are now under construction and will be completed in January through March 2000. The comprehensive network of internal roads will essentially complete the NW portion of a loop around the IH-35/FM 1325 intersection and help provide for area mobility improvements.


    Utility Infrastructure

    Thanks to an innovative joint agreement with TXU, on-site utility infrastructure currently under construction includes:

    Electric/Gas


  • Utilizing a joint trench system, underground electric and gas and fiber infrastructure is now under construction.


  • A planned second electric substation will provide additional redundant electrical backup to the existing major services.

    • Telephone/Fiber Loop/Internet

  • TXU's regional digital switch is being installed on-site this month and will begin service in January 2000.

  • A full fiber loop throughout the site links the switch to all site users via fiber-past-the-door of every on-site building.

  • Local and long distance telephony service can be originated from TXU on-site, in addition to high bandwidth internet capabilities, ADSL, DSL, direct connect, and other high-speed access capabilities, plus access to the TXU's Network Operations Center for networking and e-commerce.

    • Chilled Water District

    Infrastructure designs include availability of on-site chilled water district for specific users who want to reduce up-front construction costs through access to chilled water and comprehensive energy services management.



    Hotel/Amenities

    On-site amenities include an 800,000 s.f. retail center (including seven on-site restaurants), and a planned 8-story, 300-room full service hotel. The first spec office - a 200,00 s.f. office building - is slated for a construction in first quarter 2000.


    On-Site Living

    In addition to the major office and office-campus sites, a first-phase apartment community is scheduled for construction start in January 2000.  The 411-unit project will include high-end apartments with a four-level internal parking garage and extensive internal amenities and facilities.  The planned on-site project complements nearby apartments and local housing options.

    Housing and Schools

    Williamson County and Round Rock have rapidly expanded local housing options and availability of homes, lots and subdivisions in all price ranges. In addition, Round Rock schools have consistently been rated among the highest in Texas. Round Rock ISD was one of only three Texas districts receiving a blue ribbon rating by Expansion Management Magazine in 1998 and 1999.


    What Others Are Saying...

    "La Frontera is located in the heart of one of the most important suburban activity centers in the Austin region. The confluence of three major arterials ( IH-35, SH-45 and Mopac) will combine to make this one of the most accessible locations in the region, which, in turn will spawn development very similar to that found in the Arboretum/Gateway area.
    - Charles Heimsath, President, Capitol Market Research

    "TXU, the Dallas based utility (formerly Texas Utilities Co) has struck a deal to provide a comprehensive package of services including electricity, gas, telephone, cable and. . .security to tenants of a 328-acre, business and residential development called La Frontera on the fast-growing northern border of Austin. The deal...is the first such comprehensive arrangement for the utility, and analysts say it's one of the first in the U.S."
    -Wall Street Journal (6/16/99)

    The project promises to be worth an estimated $500 million at build-out on what was once Tom Kouri's dairy farm....On the plans for the project are 115 acres of retail, sit-down restaurants, 4 million square feet of office space, a 300-room, eight-story hotel expected to be the largest hotel in Williamson County, a 16-screen theater and 400 "urban-style" apartment homes. 
    - Austin American Statesman June 16, 1999

    “The first thing they (la Frontera) are doing is developing roads through that area and building the site road and utility infrastructure before they start building, which I think is an excellent idea, and the way it ought to be done so there's some relief before things get built."
    - Round Rock Mayor Robert Stluka

    “Round Rock ISD was selected by SchoolMatch (Columbus, Ohio) for the Eighth Annual School System "What Parents Want" Award. Only 2,310 of the nation's school systems received this honor in 1999. SchoolMatch, an independent, nationwide service, helps corporate employee families find schools that match the needs of their children.
    - Round Rock ISD Web Site

    “Round Rock has staged itself for another round of explosive growth. La Frontera Village at the northwest quadrant of IH-35 and FM 1325 is currently finalizing its development plans for approximately 700,000 square feet of new retail space.”
    - Commercial Industrial Properties, Mid Year 1999 Retail Forecast


    Issue 10 January 10, 2000

    Year End Growth Numbers Released
    With the new year comes fresh new growth numbers from Steve Murdock, chief demographer of the State Data Center at Texas A&M University. In perhaps the most exhaustive Texas population study to date Murdock's study indicates that Williamson County's population increased by 72 percent during the 1990's, with Williamson County having a population of approximately 240,000 people at year end 1999. That number is expected to double during the next 15 years.

    Murdoch notes that one out of every eight residents who move to Texas relocate to Williamson County. "Clearly," says Murdock "much of the net migration can be attributed to the growth of the high-tech industry in Texas."
    Source: Round Rock Leader, January 3, 2000



    Coming of Age: With Population Growth Comes New Homebuilding
     Fortunately, with the population growth there has been a sizeable increase in the number of new housing developments being proposed and coming on line in Williamson County over the last year as well. Residential lots and new homes in all price ranges are under development, including a number of new communities that feature golf course amenities. Here is a look at just some of the new developments now newly underway or about to begin construction:

    • Teravista - Newland Properties, the La Jolla, CA developer of both Cinco Ranch and Greatwoods in Houston, has begun work on this 1,600-acre Round Rock development just east of IH-35 on the Nash Ranch. Some 3000 homes will surround a new 18-hole golf course and will include broad range of neighborhood amenities.

    • Pebble Creek - a community now under development just west of Round Rock, on the Avery Ranch, by Bob Wunsch the developer of Berry Creek. This extensive new community also features a new 18-hole golf course and will have homes in a broad range of prices and sizes.

    • Cimarron Hills - this upscale community features a Jack Nicholas-design 18-hole championship course, a private country cub, and homes in the $300,000 to $500,000 range. It is located west of IH-35 on Hwy 29 in Georgetown.

    • Lake Forest - just south of the existing Forest Creek Country Club (which is also expanding) is the new Lake Forest development that will feature homes up to the $300,000 price range.

    • Ryan's Crossing - Round Rock's newest neighborhood under construction is located near the new Round Rock Express Baseball Stadium and is a 202 acre development with homes starting in the $120's.

    • The Preserve at Stone Oaks - this 132 acre community is projecting 363 new homes priced from the $110's.

    • Brushy Creek North - developed by Highland Resources, this 262 acre new development is currently in the approval stage.