HUTTO — After two years of working with city officials, a Georgetown-based developer has decided to terminate a deal to develop 20 acres in the Hutto Megasite.
Headwater Commercial Realty was to have closed on the property last month as it neared the end of its feasibility-study period but decided to scrap the 242,000-square-foot development that would have included several large buildings, including the possibility of landing tenants who are suppliers to Samsung Electronics Co. Ltd.’s massive semiconductor foundry in Taylor.
Hutto economic development officials confirmed the termination of the project, adding they hope to work with the company in the future.
The Hutto Megasite is a 1,400-acre, mixeduse development owned by the city and boasts several major projects including a datacenter from Dallas’ Skybox Datacenters LLC on 159-acre portion of the site called the PowerCampus.
Also developing on the campus is San Francisco-based ProLogis Inc.
Hutto’s Economic Development Director Cheney Gamboa said in a written statement the city received notice of the termination on Oct. 16.
“We were certainly disappointed to receive the termination notice, as we still feel that the project they planned to bring would add significant value to the Megasite development and community by adding diversity of available building sizes and uses for industrial space on the Megasite,” Gamboa said. “Headwater remains a valued developer in the area and we look forward to opportunities to partner in the future.”
An executive at Headwater, in an email to the Austin Business Journal, did not supply reasons for the decision to end the project.
“After considerable effort and consideration, we made the difficult decision to move on from our opportunity in the Hutto Megasite,” Headwater partner Mick Hawton wrote. “We are very grateful to the Hutto EDC, for their partnership, the board’s willingness to work alongside us, and Cheney Gamboa’s dedication and effort. We are excited to continue to explore opportunities in Hutto and look forward to the chance to work together again in the future.”
There was no penalty for pulling out of the project because it was allowed under the contract if it was done before the feasibility study period ended.
Sites in Taylor and Hutto, such as the RCR Taylor Logistics Rail Park, the Hutto Megasite and the Gradiant Technology Park all stand to benefit from the resumption of as many as 145 South Korean-based Samsung suppliers looking to locate near the semiconductor foundry slated to open late next year.
The groundbreaking for the 212-acre Gradiant Technology Park is scheduled for Nov. 17.
Despite the Headwater deal falling through for Hutto, the city has had other recent wins including the announcement that one of Europe’s most valuable companies, ASML Holding NV, would become the first major tenant in the speculative office building in the Hutto Co-Op District.
The Dutch semiconductor industry supplier provides lithographic technology to make advanced chips in Europe, the U.S. and Asia and counts numerous companies including Samsung Electronics Co. Ltd. among its clients.
It is taking up half of the 70,000-square-foot, four-story office building.
