A luxury home subdivision is expected to be completed next year in Lorena.
Loera Home Builders President Jose Loera plans to build 260 homes on 220 acres of land off Rosenthal Parkway.
"It's easy to get to Waco, ten minutes away from Hillcrest hospital, 10 minutes away from Baylor University. Just great area," Loera said.
Loera said the 4-bedroom homes will cost $500,000 and up. He added he has already built $1 million home in McGregor and he knows there is demand for those type of homes.
"Folks talking to me, what their needs are. Such a high demand for this type of home," Loera said.
Loera said he had already received 12 calls from people interested in looking at the blueprints of the houses.
City Manager Joseph Pace said the development will be beneficial for the city.
"Long term is great for the city. Short term letting the city grow and bringing people into Lorena," Pace said.
The area where the subdivision is located will be annexed to the city.
The city of Lorena agreed to put a sewer line that will go to that property, which will cost $1.1 million. The city plans to get a bond but it is not expected to raise taxes for current residents.
Pace said Loera's company will pay for $500,000 of that loan. In addition, he said the property tax generated from that development will also pay off for the rest of the bond or long-term loan.
On Thursday night, the city signed a developer's agreement with Loera and the Tax Increment Reinvestment zone for the water and sewer infrastructure.
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