Newquest Properties has agreed to terms on a second phase of Townwest Common with the City of Hutto, which will provide NewQuest Properties with grants and tax incentives. Phase I of the development is up and going with 13 tenants.

The second phase of the development, located at the corner of Hwy. 79 and Ed Schmidt Boulevard, will include more than 120,000 square feet of retail, restaurant and entertainment businesses. No specific businesses have yet been named, but the development is expected to generate $40 million in taxable revenue and create 200 full- and part-time jobs.

The economic agreement will include a $4 million economic development grant over a 10-year period and a $5 million sales tax incentive over a four-year period. Both incentives are contingent on developer NewQuest Properties meeting certain performance obligations.

Phase two of Townwest Commons is expected to be anchored by a 50,000-square-foot entertainment venue. The stores in Phase I include Lowe’s, Walgreens, Sonic and Starbucks.