Title
Hold a public hearing and consider an ordinance submitted by Shana Bailey on behalf of Y & J Investments Management, Inc. (Z26-09) to rezone approximately 0.04 acres out of Lot 1,
Block 1, Y & J Addition from “B-3A” (Local Business and Retail Alcohol Sales District) to “B-C-1” (General Business and Alcohol Sales District). The subject property is locally addressed as 1103 West Veterans Memorial Boulevard, Suite 105, Killeen, Texas.
Body
DATE: June 2, 2026
TO: Kent Cagle, City Manager
FROM: Wallis Meshier, Exec. Dir. Of Dev. Serv.
SUBJECT: Zoning Case # Z26-09: “B-3A” to “B-C-1”
BACKGROUND AND FINDINGS:
Property Information:
Property Owner: Y & J Investments Management, Inc.
Agent: Shana Bailey
Current Zoning: “B-3A” (Local Business and Retail Alcohol Sales District)
Proposed Zoning: “B-C-1” (General Business and Alcohol Sales District)
FLUM Designation: ‘RC’ (Regional Commercial)
Growth Sector Designation: ‘IE’ (Infill Enhance)
Summary of Request:
The purpose of the rezoning request is to allow expanded alcohol sales in conjunction with the operation of an existing hookah lounge. The business originally started operating out of Suite 104, which was rezoned to “B-C-1” (General Business and Alcohol Sales District) on May 23, 2023, through Ordinance No. 23-045. The applicant has since expanded into Suite 105 and is requesting the same zoning designation for the additional area.
Zoning/Plat Case History:
The property was annexed into the City of Killeen on December 31, 1919. Staff was unable to determine the date on which the property was rezoned to the ‘B-5’ (Business District) classification. Suite 105 was rezoned from “B-5” (Business District) to “B-3A” (Local Business and Retail Alcohol Sales District) on July 16, 2013, via Ordinance No. 13-053. The property is platted as Lot 1, Block 1, Y & J Addition.
Character of the Area:
North: Existing residential properties across the railroad tracks zoned “R-1” (Single-Family Residential District) and “R-3” (Multifamily Residential District)
South: Developed commercial property zoned “B-5” (Business District).
East: Developed commercial property zoned “B-5” (Business District).
West: Developed commercial property zoned “B-5” (Business District).
Future Land Use Map Analysis:
The property is located within the ‘Infill & Enhance’ (IE) Growth Sector and is designated as ‘Regional Commercial’ (RC) on the Future Land Use Map (FLUM) of the Killeen 2040 Comprehensive Plan.
The Growth Sector Map indicates that these parcels are in the ‘Infill & Enhance’ sector and, as such, have existing development and full municipal services but are located in areas where additional population, higher development intensities, and integration of uses are desired. This sector is primarily located in downtown and the surrounding established neighborhoods. Growth policies for this area support infill, redevelopment, and infrastructure improvements that accommodate additional residents and small businesses while enhancing walkability.
The ‘Regional Commercial’ place type is characterized by its focus on auto-oriented traffic and is typically located near high-traffic intersections. These areas serve a broad market area and attract users from surrounding neighborhoods. Typical uses include restaurants, grocery stores, banks, retail, gas stations, offices, and similar commercial activities. This place type supports a mix of small-scale, neighborhood-scale, and regional uses and encourages up to one hundred percent (100%) nonresidential development, with the potential for up to fifty percent (50%) residential integration.
The proposed rezoning supports the following Comprehensive Plan recommendations:
• LU1 - Encourage a mix of land uses that support economic development and redevelopment within established areas.
• LU2 - Promote infill and redevelopment in areas with existing infrastructure and services.
The Killeen 2040 Comprehensive Plan promotes incremental redevelopment of properties that contribute to overall economic growth and reinvestment. Additionally, staff finds the proposed rezoning is consistent with the surrounding area and aligns with the Future Land Use Map and the continued commercial development pattern along the Veterans Memorial Boulevard corridor.
Development Zone Analysis:
These properties are located within the City of Killeen Development Zone #1, which is generally situated north of Veterans Memorial Boulevard and west of WS Young Drive. This development zone is comprised of approximately 66.38% residential uses and 33.17% commercial uses. Overall, the current land use mix in the surrounding area includes approximately 1.36 acres (0.13%) of Special Districts, 667.36 acres (66.25%) of Residential, 58.91 acres (5.85%) of Industrial, 275.23 acres (27.32%) of Commercial, and 0.04 acres (0.45%) of Agricultural uses, for a total of approximately 1,007.39 acres. In addition, vacant property accounts for approximately 118 acres, or 11.71% 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 on the south side of West Veterans Memorial Boulevard.
Wastewater services are available for the tract via an existing 8” wastewater main located in an easement along the northern side of the property.
There is no existing stormwater infrastructure adjacent to the property.
Transportation and Thoroughfare Plan:
Access to the property is West Veterans Memorial Boulevard (U.S. Highway 190), which is classified as a principal arterial in the currently adopted Comprehensive Plan.
PARKS AND PROPOSED TRAIL PLAN:
There are no proposed parks or trails located on this site.
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 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-two (22) surrounding properties regarding this request.
As of the date of this staff report, zero (0) responses have been received regarding this request.
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-3A” (Local Business and Retail Alcohol Sales District) to “B-C-1” (General Business and Alcohol Sales District) as presented.
At their regular meeting on April 27, 2026, the Planning and Zoning Commission recommended approval of the request as presented by a vote of 5 to 0.
DEPARTMENTAL CLEARANCES:
The Planning and Legal staff have reviewed this item.
ATTACHED SUPPORTING DOCUMENTS:
Maps
Site Photos
Minutes
Ordinance
Letter of Request
Exhibit
Presentation