Round Rock City Council approved an economic development agreement March 13 that will allow for the future Heritage Trail East to extend over Brushy Creek in Downtown Round Rock.

In the approved agreement with RRTX Lake Creek Hotel LP, the Ruby Hotel will purchase a 1.028-acre property located at 408 Fannin Avenue, which is adjacent to the existing hotel. Ruby Hotel plans to redevelop a portion of this property to construct a 4,000-square-foot special event center designed to complement the hotel.

As part of the agreement, the hotel will sell a portion of the property to the City for $750,000 to serve as a bridge landing for the future trail system. The City will also provide a four-year, $2.65 million loan for project improvements to fund construction of the new event center on the remaining portion of the property. The agreement dictates that the loan must be repaid back to the City in full within four years, and the interest on the loan to be forgiven.

Conceptual Map

Note: Specific bridge alignment is subject to change based on future design work

Extending Heritage Trail East is a part of the greater Lawn at Brushy Creek project that was approved by voters as part of the 2023 G.O. Bond projects. In addition to extending the recently completed Heritage Trail West project further east, the new trail will tie into the existing regional Brushy Creek Trail system on the east side of Round Rock, and the pedestrian bridge will allow cyclists and pedestrians access into Downtown Round Rock.

The Lawn at Brushy Creek includes development of several acres of parkland along Brushy Creek near Georgetown and Pecan Streets. It is anticipated to include active and passive play areas, a playground, boardwalk, amphitheater, potential kayak launch, great lawn, pavilion, creek edge restoration and preservation of natural features.

Council also authorized a Chapter 380 Economic Development Program agreement at the March 13 meeting that allows the Ruby Hotel to receive 75% economic incentive payments based on hotel occupancy tax (7%) and property tax payments for both the hotel and event center through 2029. During this period, the City will collect these tax revenues in full and return 75% to the hotel as an incentive, with the remaining 25% retained by the City. The agreement is intended to support downtown economic activity by attracting more visitors and events to the area. Additionally, the new event center aligns with long-term plans to enhance Round Rock’s boutique hotel offerings and public amenities.

Manager of Lake Creek Hotels, Bree Carrico, said at the Dec. 5, 2024 Council meeting that the future event center is expected to be mainly indoors with an outdoor deck facing the creek. The Round Rock Zoning Board of Adjustment granted an exception in November 2024 that will allow the space to operate as an event center and have amplified sound until 10 p.m. on Friday and Saturday, and 9 p.m. on all other days.

“We are primarily in the business of selling sleep,” Carrico said. “It is important to us that our quiet hours are maintained for everyone on the property and the neighborhood.”