October has been a month of milestones for the Barron’s Branch redevelopment project, the first phase in the city of Waco’s 100-acre, 20-year downtown redevelopment plan.
On Oct. 6, the Waco City Council approved $32.2 million to acquire the Indian Spring Middle School campus for that phase, which features park amenities and mixed-use development around Jefferson Avenue and University Parks Drive.
City staff this month have also released more details on an intricate financing plan for the Barron’s Branch phase, which would include $167 million in public investment. That funding would involve Tax Increment Finance Zone funds and a small utility increase for Waco customers.
On Monday, the City Plan Commission got a look at the second draft of the “form-based code” that will dictate the nitty-gritty of building, landscape and street design throughout the redevelopment area.
The city held an open house on the project before the Plan Commission meeting Monday and continues to solicit community input as the redevelopment’s first phase takes shape ahead of anticipated ground breaking next year.
Here are some updates on what we’ve learned this month, along with timelines and ways for residents to get engaged.
A novel funding instrument
Paying for a $167 million redevelopment project typically requires a city to get voter approval for a municipal bond package, but Waco city officials are looking at an unusual alternative to finance the Barron’s Branch district.
“We’re calling it a certificate of obligation note program,” said Waco Assistant City Manager Blu Kostelich during a Tuesday interview with The Waco Bridge. This funding strategy would allow the city to take on smaller chunks of debt and finance it at short-term interest rates. Once Barron’s Branch is complete, the debt would be refinanced at a long-term interest rate.
Kostelich said this approach, which has not been used in Texas before, would save the city money compared to a traditional long-term bond, but the exact savings are impossible to predict at the moment.
Timing is key to this approach, which would take advantage of anticipated drops in the interest rate set by the U.S. Federal Reserve at the moment when the debt is refinanced.
“We have preliminary approval (from the Attorney General’s office), but because this is untested in Texas, it’s still very much with the AG to evaluate this and give their final approval,” said Tom Balk, Waco’s director of strategic initiatives.
Residential utility rates would need to increase by an average of 93 cents a month to pay off the debt for the $35 million in water and wastewater improvements in the Barron’s Branch project. City officials say those improvements are crucial to developing future phases.
In total, the city is looking to use the short-term certificates to raise more than $250 million across two projects: The Barron’s Branch district as well as $84 million to consolidate city operations at the former Central Freight Lines property at 5601 W. Waco Drive.
Kostelich said the city has employed a conservative model for projecting risk from borrowing.
Private development in the first phase is expected to add to the coffers of the downtown Tax Increment Financing Zone No. 1, helping offset some of the public costs. But Kostelich said the TIF Zone can cover any debt not covered by utility fees, even if private development were to fall through.
Parking vs. density debate
Underpinning the entire downtown redevelopment project is a “form-based code” that aims to create a cohesive design template for buildings and frontage. It dictates how streets will change in order to create a denser, more walkable downtown Waco.
The City Plan Commission reviewed the code’s second iteration Monday and voiced concerns about how the code will ensure parking availability.
The current draft of the code requires developers to provide car and bicycle parking, but allows them to reduce the number of parking spots if they pay a one-time fee to help finance and operate three planned parking garages in the downtown development.
Plan Commission members raised questions about that proposal.
“If we’ve got these four or five districts and then these planned parking garages, and 70% of the developers decide to pay the fee instead of providing their own parking, is there anything in the code where (those fees) max out?” asked commission member Meg Salome.
Matt Goebel of Goebel Partners, who was presenting the code, responded that the parking garages are intended to scale with demand. He also suggested that a “cultural” shift away from car-oriented urbanism was needed to realize the vision of a vibrant downtown Waco.
“It’s a hard conversation to have,” Goebel said. In other communities he has worked with, he said some residents “just don’t want to walk at all… and wanted that parking spot in front of that building, or the whole (development is considered) a failure.”
“I think for a demographic mix like you anticipate for a development like this, you’re gonna have more perspectives on a willingness to walk a little bit,” Goebel said.
Tree preservation
Fans of Waco’s flora will be relieved to know that the second iteration of the form-based code takes steps to protect downtown’s oldest trees.
“Tree preservation is encouraged” in the code, Goebel said. The code grants credits to developers who preserve existing trees, and those credits can be used to reduce the number of new trees they must plant.
The code also takes steps to protect specific tree species, including bald cypress, Texas ash, American maple and others when they reach a specific height and width.
Finally, there is a new category called “legacy trees” that cannot be removed. “This should target large trees such as those at University Parks and Jefferson,” according to the second draft of the code. That location includes a grove of six giant live oak trees that some experts have said may predate the town itself.
Timelines and getting involved
The third installment of the form-based code will be presented to the Plan Commission on Nov.17. Public feedback on the draft is encouraged and can be sent to info@wacodowntownredevelopment.com before Nov. 20.
The city’s official site for the downtown redevelopment project suggests downloading and marking up a PDF version of the draft code when submitting comments.
Draft adoption is planned for early 2026 while the approval of final ordinances is expected in spring.
