Major mixed-use project set for Pflugerville; incentives part of deal

Jan 23, 2015
Austin American Statesman

An economic development agreement that could be worth more than $300 million over the course of 30 years played a key role in luring a huge new mixed-use development to Pflugerville, but the company behind the project says it’s the city’s proximity to newly built highways and its family values that really sealed the deal

Pflugerville City Council members this week unanimously approved the agreement with the developers of Pflugerville Crossing, which will be on 119 acres along the Texas 130 toll road near FM 685

Under terms of the agreement, the developer — Pflugerville Crossing LP — will receive a 75 percent refund of city sales and property taxes, up to $303 million over three decades

The development will cost more than $600 million to complete and will bring many desired businesses to Pflugerville, Mayor Jeff Coleman said. Plans call for 22 restaurants, entertainment venues, a luxury hotel and three business-class hotels, in addition to about 1.6 million square feet of office space spread across several multi-story buildings and new residential options

It will create, directly and indirectly, almost 10,000 jobs, according to city figures

Construction on infrastructure is expected to start this year, a city spokeswoman said, and the project could be completely built out by 2020

The city has used economic development agreements several times in recent years to entice a variety of companies to locate in Pflugerville. Coleman said those deals have helped the city lower its property taxes by broadening its tax base

Those new businesses include the Hawaiian Falls water park, which is adjacent to the Pflugerville Crossing site

Stone Hill Town Center, a major shopping center with anchors that include Super Target, Home Depot, Ross Dress for Less, At Home and Bealls, is also nearby

The deal with Pflugerville Crossing LP requires the developer to make a one-time $200,000 payment to the city and to fund $85 million in infrastructure, Coleman said. Much of that infrastructure – such as streets and water lines – was already called for in the city’s 10-year master plan and would have otherwise been paid for by city tax dollars

Negotiations moved quickly, Coleman said, with talks between the developer and the city starting about six months ago

Within hours of the City Council’s approval of the economic development agreement, prospective office and restaurant tenants were already calling to express interest, said Scott Mann, project manager for Pflugerville Crossing

Pflugerville’s family-friendly reputation and its location near several major roadways should make it relatively easy to fill the massive project, Mann said

The development will, in many ways, resemble another project that members of Mann’s development team worked on in the Houston area. Sugar Land Town Square includes dozens of shops and restaurants, a Marriott hotel and conference center, condos and Sugar Land City Hall

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