Sheet Metal Company Adds 100 Jobs to Pflugerville With Move to 130 Commerce Center
Cortec Precision Sheetmetal plans to construct two buildings on an 8-acre tract
at 130 Commerce Center.
PFLUGERVILLE, Texas—The Pflugerville Community Development Corporation (PCDC) today announced the Pflugerville City Council approved two economic development agreements on March 11 with Cortec Precision Sheetmetal Inc. The nearly 40-year-old company, which is headquartered in San Jose, Calif. and manufactures high-quality sheet metal, will make a $20 million capital investment in a new location at 130 Commerce Center, a mixed-use development under construction at the southwest corner of SH 130 and Pecan Street in Pflugerville.
The Pflugerville site will include two new buildings—a 100,000-square-foot manufacturing facility and a 30,000- to 50,000-square-foot building—on the 8-acre tract of land the company expects to close on in the next 30 to 60 days. Construction must be complete within three years, according to the economic development agreement with the PCDC.
Cortec will relocate its 75 employees and expand in Pflugerville, with plans to hire an additional 25 workers for a total of 100 full-time jobs with $42,000 average annual salary plus medical benefits.
Though the PCDC is offering up to $228,000 in incentives to Cortec and selling the 8-acre tract of land at a reduced cost, the economic development corporation will clear more than $500,000 net profit on the sale of the land even after all incentives are paid.
“We certainly have momentum going for us at 130 Commerce Center, and that is because Pflugerville is in the right location along the highway and we are offering businesses the support they need to grow and succeed in Central Texas,” PCDC Executive Director Floyd Akers said.
At the March 11 Pflugerville City Council meeting, a “380 agreement,” outlined in Chapter 380 of the Texas Local Government Code, was also approved for Cortec that includes a 50 percent tax rebate on ad valorem real and personal property taxes collected on the property on an estimated $57,000 per year for four years. The PCDC matched this offer with a $57,000 per year grant for four years. The amount in incentives provided to Cortec by the City of Pflugerville and the PCDC total of approximately $456,000.
The City of Pflugerville will immediately add revenue to its tax roll with Cortec’s move to 130 Commerce Center. Because the PCDC is a tax-exempt 4B corporation and owned the tract of land previously, no property taxes were collected. Now, as part of the 380 agreement, Cortec will pay half of the property taxes due for the next four years, then the full amount due thereafter.
Cortec Precision Sheetmetal General Manager and longtime Pflugerville resident Richard Corrales said he plans to redevelop the company’s previous site in Round Rock into a light industrial park.
Akers said he has been in touch with the Round Rock Chamber of Commerce about Cortec’s interest in relocating for the past two years.
“We wanted to ensure that we are supporting this business in its need to expand in Central Texas while also helping both Round Rock and Pflugerville ultimately increase capital investments and add more jobs,” Akers said. “With the redevelopment of Cortec’s previous location into a light industrial site, another business will be able to move in or expand in Round Rock, too. It’s a win- win for the region to keep jobs and capital investment here.”
Charles Harvey, a commercial real estate broker and vice president with Don Quick and Associates, Inc., is representing the PCDC in the sale of the 7.937-acre tract of land for $1,382,942. Don Quick and Associates President Darren Quick, broker, is representing Cortec to secure the land purchase.
According to an impact study conducted by Austin-based Impact DataSource, which was commissioned by the PCDC, during the next 15 years Cortec’s move to Pflugerville will generate 200 permanent direct and indirect jobs, result in $19 million taxable sales and purchases within Pflugerville, and generate $20 million in additional tax revenue for the City of Pflugerville.
About the Pflugerville Community Development Corporation
The Pflugerville Community Development Corporation promotes Pflugerville as a desirable place for new businesses to operate. The organization also supports existing businesses by helping to address their needs. PCDC can provide funding for use as an incentive to businesses to begin doing business in Pflugerville. PCDC funds, which are 4B money generated from a half- cent of the city’s sales tax revenue, can also be used to construct needed infrastructure such as roads, utilities and drainage projects. Located 16 miles northeast of Austin and just south of Round Rock, Pflugerville is well-situated in Central Texas. New state highways 45 and 130 and Interstate Highway 35 all offer direct access to other nearby cities and the region’s main airport. For more information, visit www.pfdevelopment.com.