Waco, Texas, medical center considers expansion into retail development. - Waco Tribune-Herald (Waco, TX)

Sep. 30--Hillcrest Baptist Medical Center is interested in buying land and building a hospital at Interstate 35 and West Loop 340, in the Legends Crossing development that could include stores and restaurants.

'They probably would take 70 acres,' said Jimmy Banks, a Waco real estate agent who is marketing the Legends Crossing site for a group of investors who call themselves Legends Crossing Waco Development Ltd.

'I think we should know in the next couple of weeks whether we could come to terms,' said Banks.

Investors have bought about 150 acres at the southwest corner of Loop 340 and I-35, right across the loop from Waco's new shopping center, Central Texas Marketplace. Banks has said the group wants to attract retailers, restaurants and maybe a corporate headquarters.

But now Hillcrest has entered the mix. It would take about half the site, said Banks, leaving about 78 acres for a small lake around which the developers hope to place 'eight to 10 restaurants,' Banks said in a phone interview Wednesday. He added that investors still envision clusters of retail shops.

Hillcrest already owns a 40-acre tract on Highway 84 in Woodway, near the Hollywood Jewel 16 movie theater. It has said in recent years it would build a hospital there, and even erected a sign.

But its plans could be changing.

Hillcrest president and CEO Arthur Hohenberger confirmed that the hospital is looking at a 74-acre tract at Legends Crossing, adding that talks have been ongoing for several weeks and that a decision may come soon.

The health system has looked at a couple of other sites on the Interstate 35 corridor, said Hohenberger, but at this point, the decision is between Legends Crossing and the Woodway land.

Asked why Hillcrest is considering Legends Crossing, Hohenberger said development near I-35 and Loop 340 has caught its attention. When Hillcrest bought the Woodway property three years ago, Highway 84 was the predominant growth area in the county, he said, but that has changed.

Plus, Hohenberger said, the Legends Crossing site is nearly twice as large as the tract in Woodway. While the Highway 84 site is adequate, it does not offer the room for growth that Legends Crossing affords.

The fact Legends Crossing lies within the Waco city limits is 'nice,' Hohenberger said, 'but that wasn't a determining factor.' Jeff Bowden, whose family owns more than 1,000 acres near I-35 and Loop 340, said Hillcrest building a hospital at Legends Crossing 'would be wonderful.' He added: 'I don't know exactly what Hillcrest's aims are, but if their aim is to become a regional hospital, that site would be ideal. A multi-story building on that hill could be seen for miles around.' Bowden concedes he has 'selfish interests' because he would like Hillcrest near his land.

'But I think it would make sense for Hillcrest,' he added. 'I really am rooting for them.' The Bowdens own about 650 acres at the southeast corner of I-35 and Loop 340, which lies within the city of Robinson. Jeff Bowden said the family hopes to interest builders of single-family homes in about 400 acres there.

Meanwhile, they also own about 450 acres at the northeast corner of I-35 and Loop 340, in the city of Waco. There, said Bowden, he envisions apartments, an office complex and retail stores.

'There are still some big-box stores out there that can't locate in Central Texas Marketplace because of lease agreements,' said Bowden, commenting on the center that has attracted such retailers as Belk, Kohl's, Bed Bath & Beyond and The Sports Authority.

Scott & White, the Temple-based health system, sold land to the group developing Central Texas Marketplace but retained about 35 acres near Bagby Avenue. It and Hillcrest could find itself owning land near each other.

Waco Mayor Virginia DuPuy is among those who have expressed concern about Hillcrest possibly moving from its North Waco location.

If it does build a new hospital, DuPuy said, a site in Legends Crossing 'would be much, much better than out on Highway 84' because it would provide easier access for more Waco residents.

She said she believes Hillcrest's campus in North Waco remains the best site, in terms of access, 'but the board has already made up its mind about moving, and a private entity can make that decision. We trust that Hillcrest will be working with the city to assure good facility usage at the current location.' Hillcrest confirmed earlier this year that it is planning to relocate its main hospital campus. Officials say the health system needs a newer, more compact hospital in a growing area of the county to protect its financial health.

The new facility would replace Hillcrest's emergency room, acute care and designated 'Level II' trauma center, and could add some new services, such as a pediatrics hospital, officials have said.

Its current campus would be used for services such as comprehensive rehab, cancer care and long-term acute care. It also could be re-developed for office space, officials say.

The planned move to Woodway upset some Waco city, school and business leaders. They said a relocation outside the city limits would negatively affect residential and commercial real estate in the North Waco area, cause professional families to move out of the Waco school district, and affect health-care delivery to residents near the hospital.

Concerned leaders formed a coalition last fall and met with Hillcrest officials throughout the year.

But Hillcrest has forged ahead with its plans.

Woodway Mayor Don Baker said he has heard that Hillcrest is considering Legends Crossing, 'though I have not heard anything official from Hillcrest.' Being a non-taxed entity, Baker said, Hillcrest's new buildings in either Waco or Woodway would not create a tax bonanza for either city.

But he does envision a new hospital spawning other businesses and doctor's offices.

Hillcrest has the zoning it needs to build on Highway 84, Baker said, and the city has eased height restrictions to allow Hillcrest to erect multi-story buildings. Woodway also has ample water and sewer capacity to welcome a new hospital to its community.

Bottom line, though, the decision rests with Hillcrest, and it may opt for more land, Baker said.

Hohenberger said Woodway has cooperated with Hillcrest in its planning, saying: 'They definitely want the hospital there.' Randy Reid, a local real estate agent, said if Hillcrest chooses to locate in Legends Crossing, it should have no trouble finding a use for its land on Highway 84.

'There could even be a swap, with Hillcrest throwing in the land (on Highway 84) to purchase the property at Legends Crossing, though I don't know if the Legends Crossing people are motivated to do that deal,' Reid said.

Selling the land on Highway 84 'would not be particularly difficult, though it could take awhile,' Reid said, noting that there has been a lot of retail development in Waco the past couple of years, so it may take time for demand to build for yet another retail center.

'But there's always the new guy that nobody's familiar with who wants to do something different,' Reid said, adding: 'It is really a good piece of property, one of the best pieces in the Waco area.' As for Legends Crossing, Banks said the investment group paid 'north of $8 million' for that land and will spend $4 million to $5 million on infrastructure, including streets, utilities and signs.

Banks has said he hopes to begin putting tenants in Legends Crossing as early as 2006.

By Mike Copeland and Cindy V. Culp

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