During its regular meeting on Oct. 15, the New Braunfels Economic Development Corp. (NBEDC) granted a five‑year extension on the performance deadlines set out in the Co‑Op Marketplace incentive agreement. The decision keeps the mixed‑use, 2.5‑acre project on Castell Avenue moving forward, even as developers grapple with rising capital costs, tenancy challenges and design revisions.
Project overview and incentive background
The Co‑Op Marketplace is planned as a 27,000‑square‑foot development that will combine retail, office and community space. Approximately 13,000 square feet are earmarked for a public market that will showcase local small businesses, providing a venue for entrepreneurs and families to shop close to home.
In 2024, the City Council approved a $4.5 million incentive agreement with the developers. The agreement required a series of public‑improvement projects to be completed by Dec. 31, 2026, including a public lawn, splash pad, stage, exhibition space, restrooms and pedestrian connections. To date, no incentive payments have been released, as the developers have not yet met the performance milestones.
Reason for the extension
Developers asked NBEDC for additional time because construction costs have risen sharply, potential tenants have been slower to sign leases, and the project’s design has been reworked to better serve the community. The extension adds five years to the deadline, moving the final completion date to Dec. 31, 2031.
Mike Myers, an investor in the project, emphasized the importance of the extension for keeping the development on track. “I think we will all be disappointed if we’re not in construction in 2027,” Myers said. “The five‑year extension is just so we don’t have to do this again. But we fully anticipate beginning construction next year.”
What the extension means for New Braunfels
By granting the extension, NBEDC is demonstrating a commitment to responsible development that balances fiscal stewardship with community benefit. The additional time allows developers to secure financing, lock in tenants and finalize design details without sacrificing the promised public amenities.
The public improvements outlined in the agreement are designed to enhance quality of life for families and reinforce the city’s traditional values. A splash pad offers a safe, family‑friendly recreation option for children, while the public lawn and stage provide spaces for community gatherings, concerts and faith‑based events.
Local business leaders have welcomed the news, noting that the Co‑Op Marketplace will create jobs, support small‑business owners and add vibrancy to downtown New Braunfels. The project aligns with the city’s broader economic‑development strategy, which seeks to attract investment while preserving the character and family‑focused atmosphere that residents cherish.
Next steps
With the extension in place, developers now have until the end of 2031 to complete the public‑improvement components and begin full construction. The NBEDC will continue to monitor progress and ensure that the city’s interests are protected throughout the extended timeline.
Community members are encouraged to stay informed about the project’s milestones and to voice support for the public amenities that will serve families, faith groups and local entrepreneurs alike.
Original reporting: Community Impact — Austin — read the source article.
