Title
Hold a public hearing and consider an ordinance by The Cave Entertainment Group on behalf of Yong Ballheimer (Case# Z26-17) to rezone approximately 0.030 of an acre out of Lot 2, Block 1, La Mer Addition Phase Two from “B-5” (Business District) to “B-C-1” (General Business and Alcohol Sales District). The subject property is locally addressed as 311 East Stan Schlueter Loop, Suite 208, Killeen, Texas. (Requires ¾ Majority for Approval)
Body
DATE: October 8, 2026
TO: Kent Cagle, Interim City Manager
FROM: Wallis Meshier, Executive Director of Development Services
SUBJECT: Case #Z26-17: “B-5” to “B-C-1”
BACKGROUND AND FINDINGS:
Property Information:
Property Owner: Yong Ballheimer
Agent: The Cave Entertainment Group
Current Zoning: “B-5” (Business District)
Proposed Zoning: “B-C-1” (General Business and Alcohol Sales District)
FLUM Designation: ‘Neighborhood Commercial’ (NC)
Growth Sector Designation: ‘Neighborhood Infill’ (NI)
Summary of Request:
The applicant is requesting to rezone the subject property to “B-C-1” (General Business and Alcohol Sales District) to allow a lounge that permits on-premises consumption of alcoholic beverages. The lounge would be located in a single suite of the existing commercial building. The subject property is not located within three hundred (300) feet of a church, public or private school or public or private hospital, as required by Sec. 31-351(3). The applicant will also be required to hold an approved license from the Texas Alcoholic Beverage Commission (TABC).
Zoning/Plat Case History:
The property was annexed into the City of Killeen on December 22, 1986 via Ordinance 86-87 and subsequently zoned to “TR-1” (Temporary Single Family Residential District). On January 24, 1995, the property was rezoned to “B-5” (Business District) through Ordinance No. 95-2. The property is platted as Lot 2, Block 1, La Mer Addition Phase Two.
Character of the Area:
North: Developed residential property zoned “R-1” (Single-Family Residential District).
South: Developed residential property zoned “R-1” (Single-Family Residential District).
East: Developed commercial property zoned “B-5” (Business District) and “B-C-1” (General Business and Alcohol Sales District).
West: Developed commercial zoned “B-3A” (Local Business and Retail Alcohol Sales District) and “B-5” (Business District)
Future Land Use Map Analysis:
The property is located within the ‘Neighborhood Infill’ (NI) area on the Growth Sector Map and designated as ‘Neighborhood Commercial’ (NC) on the Future Land Use Map (FLUM) of the Killeen 2040 Comprehensive Plan.
The ‘Neighborhood Infill’ area on the Growth Sector Map includes areas of the city that are already developed and have access to city services and infrastructure, but have vacant, underutilized, or poorly developed properties. Growth policies for this sector should encourage development or redevelopment of these properties with accessory dwelling units, smallplexes, and micro commercial that provides incremental increases in density. Development should match the existing character and improve walkable access to businesses and amenities for people living and working in the vicinity.
The ‘Neighborhood Commercial’ place type is predominantly a commercial extension of a traditional neighborhood. These places generally grow along with a neighborhood and need to be allowed to change over time to intensify as its surrounding neighborhood does. These are often located along a higher traffic roadway that serves as the edge of a neighborhood. These areas bridge pedestrian and auto-oriented development patterns. Street parking and continuous building frontages are very important here as it creates a pleasant experience for people who traverse the area on foot. Shared parking should be encouraged. High intensity small lot residential is acceptable within this place type. This place type encourages up to one hundred percent (100%) nonresidential and as much as twenty-five percent (25%) residential use mix.
The request supports the following Comprehensive Plan recommendations:
§ LU1 - Encourage a mix of land uses that support economic development and redevelopment within established areas.
§ LU2 - Improve the fiscal productivity of development by encouraging uses that contribute to the City’s long-term economic sustainability.
The Killeen 2040 Comprehensive Plan promotes incremental redevelopment of properties that can add to a widespread improvement. Staff finds that the proposed development is consistent with neighborhood-scale commercial uses by providing services commonly needed by the surrounding community, including restaurants, general retail, medical offices, and fuel stations.
Development Zone Analysis:
These properties are located within the City of Killeen Development Zone #6, which is generally situated between Stagecoach Road and Central Texas Expressway, and east of Fort Hood Street. This development zone consists of approximately 65.76% residential uses and 34.24% commercial uses. Overall, the current land use mix in the surrounding area includes approximately 150.77 acres (3.52%) of Special Districts, 2,666.93 acres (62.25%) of Residential, 102.99 acres (2.40%) of Industrial, 1,312.54 acres (30.63%) of Commercial, and 51.34 acres (1.20%) of Agricultural uses, for a total of approximately 4,284.56 acres. In addition, vacant land accounts for approximately 1,175.75 acres, or 27.44% of the area.
Water, Sewer and Drainage Services:
Provider: City of Killeen
Within Service Area: Yes
Feasibility Study or Service Commitment: Water, wastewater, and drainage services are located within the City of Killeen municipal utility service area and are available to the subject tract.
Water services are available for the tract via an existing 6” water distribution main located in East Stan Schlueter Loop.
Wastewater services are available for the tract via an existing 6” wastewater main located in East Stan Schlueter Loop.
A storm sewer inlet and associated piping is located on East Stan Schlueter Loop along the frontage of the tract.
Transportation and Thoroughfare Plan:
Access for the tract is Via East Stan Schlueter Loop, which is a 150-foot-wide right-of-way and is classified as a Minor Arterial in the currently adopted Comprehensive Plan.
The current zoning classification for the tract is “B-5” (Business District). The proposed zoning classification under this proposed zoning reclassification is “B-C-1” (General Business and Alcohol Sales District). The stated proposed bar/lounge is not expected to generate a significant change in traffic volume as a result of the proposed zoning reclassification. Computations are based on the data from the 10th Edition of the ITA Trip Generation Manual.
If the conditions or assumptions used in the development of the current Traffic Impact Determination change, a revised determination may be warranted at that time.
Environmental Assessment:
The tract is in the Nolan Creek / Leon River Watershed. The tract is located in Zone X Unshaded (0.2% Annual Chance Flood Hazard Area), per Federal Emergency Management Agency Flood Insurance Rate Map 48027C0280E with the effective date September 26, 2008.
The tract is not impacted by freshwater ponds, freshwater forested/shrub wetlands, freshwater emergent wetlands, or riverine habitats as shown on the National Wetlands Inventory maps for the properties. No visual evidence of other environmental impediments is apparent on the tract at this time.
Public Notification:
Staff notified property owners of twenty (20) surrounding properties regarding this request.
As of the date of this staff report, staff has received one (1) response in opposition, and none in support of this request.
Opposition to this request comprises approximately 30.86% of the 200-foot notification boundary.
In accordance with Texas Local Government Code Sec. 211.0061, approval of this request will require the favorable vote of three-fourths (¾) of all members of the City Council.
Staff Findings:
Staff finds that the proposed zoning is compatible with existing land use and is consistent with the Future Land Use Map and Killeen 2040 Comprehensive Plan.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This zoning request conforms to the City’s policy and procedures, as detailed in Chapter 31 of the Killeen Code of Ordinances.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
This zoning request does not involve the expenditure of city funds. Public infrastructure is already in place for this property and maintained by the City. Maintenance costs will continue for the life of the development.
Is this a one-time or recurring expenditure?
This is not applicable.
Is this expenditure budgeted?
This is not applicable.
If not, where will the money come from?
This is not applicable.
Is there a sufficient amount in the budgeted line item for this expenditure?
This is not applicable.
RECOMMENDATION:
Staff recommends approval of the applicant’s request to rezone the property from “B-5” (Business District) to “B-C-1” (General Business and Alcohol Sales District) as presented.
At the regular meeting on August 24, 2026, the Planning and Zoning Commission recommended approval of the request by a vote of 6 to 1. Commissioner Sabree voted in opposition to the request due to the proposed sale of alcohol.
DEPARTMENTAL CLEARANCES:
The Planning and Legal staff have reviewed this item.
ATTACHED SUPPORTING DOCUMENTS:
Maps
Site Photos
Minutes
Ordinance
Letter of Request
Responses
Presentation