Title                     
 
Hold a public hearing and consider an ordinance submitted by Theresa Lau on behalf of 440 Group, Ltd. (Case# Z25-28) to rezone approximately 0.04 acres out of Lot 4, Block 1 of the 440 Plaza Shopping Center addition, from “B-5” (Business District) to “B-5” (Business District) with a “CUP” (Conditional Use Permit) to allow for the sale of alcoholic beverages for on-premises consumption. The subject property is locally addressed as 1044 South Fort Hood Street, Killeen, Texas.
 
Body
 
DATE:                     November 4, 2025
 
TO:                     Kent Cagle, City Manager
 
FROM:                     Wallis Meshier, Exec. Dir. Of Dev. Serv.
 
SUBJECT:                     Zoning Case # Z25-28: “B-5” to “B-5” w/“CUP”
 
BACKGROUND AND FINDINGS:
 
Property Information: 
 
Property Owner: 440 Group, Ltd.
Current Zoning: “B-5” (Business District)
Proposed Zoning: “B-5” (Business District) with a Conditional Use Permit (CUP) to allow for the sale of alcoholic beverages for on-premises consumption.
Current FLUM Designation: ‘Regional Commercial’ 
Conditional Use Permit: Sec. 31-456(a), the purpose of the conditional use permit process is to identify those land uses that may be appropriate within a zoning district. 
 
 
Summary of Request: 
 
The applicant’s request is for a Conditional Use Permit (CUP) to allow the sale and on-premises consumption of alcohol in conjunction with a proposed bookstore and café, which will serve both cocktails and non-alcoholic drinks. Alcohol service will be secondary to the primary use as a bookstore and café. 
 
Killeen Code of Ordinances Chapter 31 Compliance:
 
The subject property is currently zoned “B-5” (Business District). Per Section 31-306.1 - Supplemental standards for restaurants engaged in the on-premises sale and consumption of alcohol: “During any consecutive twelve-month period, a restaurant shall not obtain more than fifty (50) percent of its gross receipts from the on-premises sale of alcoholic beverages.” In order to ensure compliance with this section, the applicant was advised to apply for a Conditional Use Permit. 
 
Killeen Code of Ordinances Sec. 31-456 provides that the Conditional Use Permit (CUP) process is intended to identify those land uses that may be appropriate within a zoning district but, due to their location, function or operation, could have a harmful impact on adjacent properties or the surrounding area, and to provide a procedure whereby such uses may be permitted by further restricting or conditioning the same so as to mitigate or eliminate such potential adverse impacts. 
 
Sec. 31-456(e)(A) states that the Conditional Use Permit shall be void if the building or premises is not put to the permitted use for a period of one (1) year from the effective date of the ordinance authorizing issuance of the permit or the permitted use ceases for any one (1) year period.
 
 
Zoning/Plat Case History:
 
The property was annexed on September 9, 1962, and Staff was unable to determine when it was zoned to “B-5” (Business District). It was platted on July 16, 1971. 
 
 
Character of the Area:
 
North: Commercial property zoned “B-5” (Business District), “B-3A” (Local Business and Retail Alcohol Sales District), and “RC-1” (Restaurant and Alcohol Sales District).
South: Undeveloped Commercial lots zoned “B-5” (Business District)
West: Commercial property zoned “B-5” (Business District)
East: Commercial property zoned “B-5” (Business District) and “B-C-1” (General Business and Alcohol Sales District)
 
 
Future Land Use Map Analysis:
 
The subject property is located within the ‘Neighborhood Infill’ (NI) area on the Growth Sector Map and is designated as ‘Regional Commercial’ (RC) 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.
 
These ‘Regional Commercial’ places are first identified by their principal focus on auto-oriented traffic. Logically placed near high-traffic intersections, these spaces bring people from many surrounding neighborhoods. Typical uses will include regional businesses including but not limited to restaurants, grocery stores, banks, retail, gas stations, and offices. This place type encourages small-scale, neighborhood-scale, regional, and industrial. This place type encourages one hundred percent (100%) nonresidential and fifty percent (50%) residential use mix.
 
The request supports the following Comprehensive Plan recommendations:
 
§                     LU3 - Encourage incremental evolution of neighborhoods.
§                     NH4 - Build complete neighborhoods.
 
The Killeen 2040 Comprehensive Plan promotes incremental redevelopment of properties that can add to a widespread improvement. Additionally, Staff finds that the proposed rezoning is consistent with the surrounding area, which consists of commercial-zoned property. 
 
Development Zone Analysis: 
 
These properties are located within the City of Killeen Development Zone #3. This development zone is between Interstate Highway 14 and Veterans Memorial Boulevard, east of Fort Hood Street.  This development zone consists of 62.40% residential uses and 37.60% commercial uses.
 
The current land use mix within this area comprises the following acreages and percentages approximately:
 
District                                          Acres                                          Percentage
Special Districts                     81.61                                          2.74%
Residential                                          1779.03                     59.66%
Industrial                                          273.37                                          9.17%
Commercial                                          847.76                                          28.43%
Agricultural                                          0.00                                          0.00%
Totals                                                               2981.78                     100.00%
 
Vacant Property                     716.18                                          24.02%
 
 
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 partially available to the subject
tract.
 
Water services are available for the suite via an existing 6” water distribution main located south of the main building structure.
 
Wastewater services are available for the suite via an existing 8” wastewater main located north of the main building structure.
 
No storm sewer facilities are located adjacent to the individual suite.
 
 
Transportation and Thoroughfare Plan:
 
Access to the property is via South Fort Hood Street (120’ ROW), which is classified as a Principal Arterial in the currently adopted Comprehensive Plan.
 
An individual traffic impact analysis is not required at this time.
 
PARKS AND PROPOSED TRAIL PLAN:
 
There are no proposed parks or trails on this site.  Parkland dedication, fees in lieu of, and parkland development fees will not be required as the property is already developed.
 
 
Environmental Assessment:
 
The property is located in the Nolan Creek / Leon River Watershed, in Zone X (Outside the 0.2% Annual Change Flood Hazard), per Federal Emergency Management Agency Flood Insurance Rate Map 48027C0280E with effective date September 26, 2008.
 
The property is not impacted by wetland areas according to the National Wetlands Inventory Map. No visual evidence of other environmental impediments is apparent on the property at this time.
 
 
Public Notification:
 
Staff notified property owners of fifteen (15) surrounding properties regarding this request. 
 
As of the date of this staff report, two written responses have been received regarding this request: one (1) in support and one (1) in opposition. 
 
 
Staff Findings:
 
The subject property is located within an active commercial location that includes a variety of uses such as restaurants, a hair salon, retail establishments, and a pool hall. The applicant would like to have the sale of alcoholic beverages as a secondary component to the primary operations of a bookstore café. Staff finds that the request is consistent with the recommendations of the Killeen 2040 Comprehensive Plan.
 
In accordance with Killeen Code of Ordinances Sec. 31-456(e)(1): “A conditional use permit shall continue in full force and effect until the earliest occurrence of any of the following events of termination, at which time it shall be void and shall have no further effect:
 
A.                     The building or premises is not put to the permitted use for a period of one (1) year or more from the effective date of the ordinance authorizing issuance of the permit or the permitted use ceases for any one (1) year period;
B.                     The permit expires by its own terms;
C.                     The property is rezoned;
D.                     Another conditional use permit is approved for the site;
E.                     The building or premises is substantially enlarged or extended;
F.                     The use of the building or premises is materially expanded or increased; or
The violation of any one (1) or more of the conditions of approval
 
 
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.
 
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 subject property from “B-5” (Business District) to “B-5” (Business District) with a Conditional Use Permit (CUP) to allow for the sale of alcoholic beverages for on-premises consumption as requested by the applicant. 
 
The Planning and Zoning Commission recommended approval of the applicant's request to change the zoning classification from “B-5” (Business District) to “B-5” (Business District) w/ a “CUP” (Conditional Use Permit) to allow for the sale of alcoholic beverages for on-premises consumption by a vote of 7 to 0.
 
 
DEPARTMENTAL CLEARANCES:
 
Planning and Legal staff have reviewed this item.
 
 
ATTACHED SUPPORTING DOCUMENTS:
 
Maps
Site Photos
Minutes
Ordinance
Letter of Request
Responses
Presentation