In September, 2002 the then Village of Bee Cave Board of Alderman adopted Ordinance No. 02-09-10D calling a special election on the adoption of an additional sales and use tax at the rate of one-fourth of one percent pursuant to the provisions of Section 4B, the Development Corporation Act of 1979. An election was held November, 2002 where voters approved the additional tax. The Board of Alderman then authorized creation of the Bee Cave Development Corporation and filed articles of incorporation with the Secretary of State. According to Article 7 of their by-laws, the Development Board of Directors is comprised of seven (7) persons appointed by the majority of the governing body (the City Council) and hold office for two year terms. The first meeting was held in May, 2003 and the original members of the Bee Cave Development Board were Heather Cadenhead, Jonathan Coker, Doug Connolly, Marcy Holloway, Scott Kelley, Mike Murphy and Stu Smith.
The Development Board has played a pivotal role in the growth of Bee Cave. Their major projects have included the 50 acre Central Park and the Board, working in-step with the City Council has provided funding and support for the construction of Bee Cave Parkway, and overseeing the construction projects for relocation of the dog park and extension of the hike and bike trails within the Central Park.