A potential resolution may be in sight for the ongoing dispute over the West Austin Business Park, as CesiumAstro, a space communications startup based in Austin, is negotiating to acquire the 23-acre property. The company plans to transform the site into its global headquarters.
The property, known as Lot 7 and located near State Highway 71 and Sweetwater Village Drive, includes three buildings totaling 270,000 square feet. It lies within Bee Cave’s extraterritorial jurisdiction and has been subject to a legal battle for more than a year.
No agreement has been finalized yet. “We’ll share updates on any expansion once details are confirmed,” said Ken Smith, CesiumAstro’s CFO.
Bee Cave city officials indicated that CesiumAstro is set to purchase the campus from Dallas-based Velocis as part of a settlement intended to resolve litigation over the project. Velocis had previously partnered with KBC Advisors on development plans for the site. In December, Bee Cave City Council voted unanimously to move forward with an updated settlement following an executive session; however, court records have not yet reflected this agreement.
If completed, the sale would largely end Bee Cave’s dispute with Velocis by shifting plans away from a warehouse hub toward use by an aerospace employer. According to city officials, CesiumAstro intends to utilize the campus for office operations and assembly of satellite communications equipment rather than distribution activities.
This change in use was central to Bee Cave’s lawsuit filed in 2024 against Velocis and its partners. The city argued that their industrial warehouse project violated a 2015 development agreement due to incompatibility with surrounding residential neighborhoods—a claim disputed by Velocis. Under terms of the amended settlement agreement now under consideration, warehouse and distribution uses would be prohibited.
Plans include converting most loading docks into windows—reducing them from 76 docks down to four truck bays—and capping monthly truck traffic at eight 18-wheelers instead of potentially hundreds per day. All deliveries would require advance notice and police escort. Additionally, developers agreed to donate $500,000 to Bee Cave.
Mayor Kara King described the proposed settlement as beneficial for residents: “better outcome for our community than a last mile warehouse distribution center.”
Some legal matters remain unresolved; claims involving former city manager Clint Garza are still scheduled for trial in February.
CesiumAstro has experienced rapid growth recently: it raised $65 million last year after securing $60 million in funding during 2022 and has landed contracts with agencies such as the Space Development Agency and U.S. Air Force. Its workforce has doubled past 200 employees as it looks for additional space in Austin.
