ROUND ROCK, Texas (KXAN) — The Round Rock City Council cleared the way Thursday for a large, mixed-use development called The District.

City leaders unanimously approved a development agreement with California-based Mark IV Capital, which plans to build the 1 million square feet complex on a tract of undeveloped land south of State Highway 45 and north of Greenlawn Boulevard.

The city announced that the company will spend at least $200 million over the next 20 years developing The District to have office spaces and retail and housing spaces. The city will contribute more than $12 million for infrastructures like streets, sidewalks and utilities.

Nichole Vance, the director of business attraction for the Round Rock Chamber of Commerce, said The District will help meet a need for much more office space, as the city works to attract more industries like information technology and computing.

“We’re working a lot more with defense contractors because of the Army Futures Command Center,” Vance said, “and we have to have places that house those type of companies. Currently, we are running out of space. We do not have them.”

Part of the deal stipulates that if the developer does not meet certain milestones over the 20-year period, the company will have to repay the city.

By the time the project is fully developed, the city expects the District to generate more than $1.5 million in tax revenue each year and create at least 5,000 jobs. The project was first announced in Nov. 2017 when the City Council approved a memorandum of understanding with the developer.

Rey Dimas, who lives in a neighborhood south of the proposed site, called the development “exciting,” but it may create more traffic in the area.

“There’s going to be growing pains no matter where you live,” Dimas said, “so if they actually know what they’re doing and plan it the right way, then it shouldn’t be a problem.”

Round Rock has previously worked with Mark IV Capital on two other projects, the Summit I and Summit II offices in La Frontera.