The City of Bee Cave and its co-plaintiffs have reached a settlement agreement with the developers of a warehouse and distribution center off Hwy 71.
Under the terms of the agreement, Cesium Astro will purchase the entire property, known as Lot 7, for its global headquarters. The facility will be used to build cutting-edge communication tools for satellite technology.
As part of reaching the settlement, Cesium Astro has worked with the city to modify the development’s design, appearance, and use to comply with an amended development agreement with the city, which will not permit industrial uses such as a distribution center or warehousing facility.
The modifications include converting 76 of the loading bays to windows, leaving just four truck bays and resulting in no more than eight – 18-wheeler truck trips per month instead of the hundreds of truck trips per day if used as originally designed. In addition, Bee Cave Police must be given 24 hours’ advance notice of an 18-wheeler delivery at the facility, and every truck trip must have an escort. These concessions will make local roads safer for nearby Sweetwater residents and all drivers who rely on Hwy 71 to travel in western Travis County.
Velocis and KBC, the developers of the warehouse distribution center, have also agreed to donate $500,000 to the City of Bee Cave as part of the settlement.
“Bee Cave and the surrounding community deserve safe roads and responsible development. This agreement helps us deliver on those promises and represents a much better outcome for our community than alast mile warehouse distribution center,” said Bee Cave Mayor Kara King.
While this agreement resolves the dispute over the industrial warehouses, it does not release the city’s claims against former City Manager Clint Garza, which include fraud and breach of fiduciary duty, or related claims against the former landowner of Lot 7, Wheelock, including conduct concerning the development of the surrounding land. Those claims are still scheduled for a jury trial to begin on February 23, 2026, in Travis County District Court.
The Bee Cave City Council authorized its attorney to negotiate a settlement agreement at its December 9 council meeting and Mayor King has signed the agreement on behalf of the city. The settlement will go into effect once all parties have signed, which is expected soon.