The council approved the first reading of an agreement with Village Investment Partners to construct Memorial Drive, which lays just north of Abilene Regional Medical Center.
The agreement would hold the city responsible for up to $200,000 in project costs.
At the time of the last meeting, Abilene residents expressed concerns about traffic after TxDot announced its plans to alter traffic on South Clack street to one-way.
Last month, the council approved a height change that would allow for construction of a Sam's Club in the area.
The public hearing will is now scheduled for August 23.