Katy North Edition | March 2025

Decade in the making From the cover

61.07% rise insales tax revenue citywide from 2020-24 $3M annual sales tax revenue from project*

750K sq. ft. of retail and restaurants 300K sq. ft. of medical oces

Retail/restaurants

165 acres $400M investment

The overview

Medical oce space

550 apartments

P Parking

NewQuest’s long-awaited $400 million Texas Heritage Marketplace mixed-use project could be a “monster sales tax driver” for the city of Katy, City Administrator Byron Hebert said. City ocials said the 165-acre project has been in the works for nearly a decade. It’s projected to house retail and restaurant space, medical oce space, and apartments. Target is conrmed as an anchor tenant, bringing a 149,000-square-foot store, according to a Jan. 27 news release from NewQuest. Although the development—located at the southeast corner of I-10 and Texas Heritage Parkway—is outside of Katy’s city limits, it’s within the city’s extraterritorial jurisdiction. This means Katy will still receive roughly $3 million in sales tax revenue annually from the property, city ocials said. Hebert said the amount of master-planned communities and subdivisions south of the development, such as Jordan Ranch, made the location attractive for NewQuest. The 6.5-mile Texas Heritage Parkway between I-10 and FM 1093 also links the development to a 5-mile trade area, whose population has grown 56% since 2020, per the release.

0 FRONTAGE RD.

Target

Proposed multifamily

Proposed detention pond

*PROJECTION BY CITY OF KATY

SOURCES: TEXAS COMPTROLLER, CITY OF KATY, NEWQUESTCOMMUNITY IMPACT

The breakdown

Katy’s cost will come from Metropolitan Transit Authority of Harris County funds, Hebert said. “By strengthening our sales tax base, it gives us the ability to nance long-term maintenance of our infrastructure without having to rely ... heavily on property taxes,” City Planner Rachel Lazo said.

• Katy to reimburse NewQuest $20 million for detention and a road south of the project, upon NewQuest hitting retail milestones • The MUD to give NewQuest $20 million from sales tax revenue it collects from the development

Through an incentive agreement between the Willow Creek Farms Municipal Utility District and NewQuest, the city is set to receive $0.01 in sales tax revenue for every dollar spent in sales tax in the development, Hebert said. Other factors of the agreement require:

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