Feb 13 2015
The Pflugerville Community Development Corporation (PCDC) today announced that commercial real estate development company Star Stream Capital and Chicago-based investment bank B.C. Ziegler and Company, jointly operating as Pflugerville Crossing LP, plan to break ground in March on a major mixed-use development in Pflugerville.
The project spans 119 acres on the east and west sides of SH 130, south of the intersection with FM 685. With a $600 million initial investment, the development is planned to feature multiple hotels, 22 restaurants, and at least 413,000 square feet of retail.
The project, which includes Sunshine Village Town Center and SunTech Office Park, are expected to be complete by 2020, according to a presentation by developers at a January Pflugerville City Council meeting.
"We have been working for many years to lay a solid foundation in Pflugerville for this type of development, and now we are celebrating the largest economic development project we have ever seen in our community," PCDC Executive Director Floyd Akers said. "Developers are making a significant capital investment in this project, which will bring more than 9,000 jobs and over a billion dollars to the revenue stream, as well as recreation, convenience and entertainment to our residents and the entire region."
According to an economic impact study by Austin-based Impact DataSource, over 30 years this development will bring an estimated $1.5 billion total revenue stream, after all incentives are paid, to area taxing entities. The project is also expected to generate more than 9,000 direct and indirect jobs.
Developers cited the Pflugerville's proximity to newly built highways and the community culture as factors in choosing this location for the development.
"We selected Pflugerville because of the core tradition of family values that has been prevalent since the founding Pflugers and families settled to formed the city," Scott Mann project manager said. "Pflugerville officials demonstrate what I call 'leadership in action' and that precedence can be seen through the city's annexation program, utility program and school expansions. If you prepare and embrace the future then you will have success, and we saw this unique combination demonstrated by today's Pflugerville leaders."
In January, the Pflugerville City Council approved a 380 Agreement between the City of Pflugerville and Pflugerville Crossing, LP for development of 119 acres near the corner of SH 130 and FM 685. The 30-year agreement is anticipated to generate more than $2.279 billion in aggregate property and sales tax revenues.
"This new development is fantastic for Pflugerville as it creates even more momentum at the corner of SH 130 and SH 45 to complement the Stone Hill shopping center and Hawaiian Falls Water and Adventure Park," Pflugerville Mayor Jeff Coleman said. "The city council has stated the goal of transitioning from a bedroom community to a traditional urban suburb and that means having a great place to live and job opportunities nearby. This development will build more than $600 million in initial investment into our community and bring hotels, residential living, restaurants and entertainment opportunities to Pflugerville."
Under the contract, the developer will pay for construction of a mixed-use development accommodating employment, retail, entertainment and residential uses, while also paying for approximately $85 million in infrastructure necessary for the project to come to Pflugerville.
"If the city of Pflugerville had to pay for the $85 million in infrastructure needed to bring the project, it would be equivalent to adding 15 cents per $100 valuation on the tax rate that the city council has worked so hard to lower for the past 11 years," Coleman said. "The developer's infrastructure investment is an indicator of their commitment to this project. Independent of the project's success, the citizens of Pflugerville don't have to repay or eventually pay for the bonds. This is a significant win for our city."
In addition to the $85 million in infrastructure, the city of Pflugerville will receive a one-time $200,000 payment from the developer, and the developer will allocate $12 million towards development of public facilities, which may provide opportunities for future city office space. The developer will cover the cost of 4.3 miles of reuse water lines and 4.1 miles of wastewater lines from the city's wastewater plant to the site that expands the city's water abilities. The city estimates an additional $350,000 a year in revenues from the expanded water reuse system. The city will receive 25 cents for every city property and sales tax dollar generated by the development.
In return for paying for the infrastructure, and upon reaching development goals outlined in the agreement, the developer will receive a 75 percent refund in property and sales tax up to $303 million from the city over 30 years.
"This lifestyle center is a game changer for Pflugerville that will further enhance our community," Pflugerville City Manager Brandon Wade said. "We will receive roadways and an expanded wastewater and reuse water system which allows us to be even more water conscious than we already are."
Source: http://www.pfdevelopment.com/