Courtyard Marriott Hotel and Conference Center to Open in Pflugerville by Summer 2016
A 3-star hotel and conference center will be located at 130 Commerce Center near the southwest corner of SH 130 and Pecan Street.
PFLUGERVILLE, Texas – The City of Pflugerville and the Pflugerville Community Development Corporation (PCDC) today announced that the city’s second hotel will be a $20 million Courtyard by Marriott hotel with a minimum of 120 rooms and a 17,500-square-foot conference center. The 3-star, full-service hotel with an outdoor pool will be located at 130 Commerce Center, a mixed-use development under construction at the southwest corner of SH 130 and Pecan Street.
“The City has entered an agreement to bring Pflugerville a conference center that will attract business meetings, special events, jobs and hotel/motel tax revenue to Pflugerville,” Mayor Jeff Coleman said. “Expanded shopping opportunities, restaurants and other entertainment venues are making Pflugerville a place where others want to visit and residents can enjoy.”
The City approved a 380 Economic Development Agreement with Village Pflugerville Holdings, LLC, (Village) at the Tuesday, May 13 City Council Meeting. The Agreement details include Village investing $20 million to construct a hotel that has at least 120 rooms and an on-site restaurant and bar. $5 million of the investment is set to be dedicated toward an attached conference center that accommodates approximately 750 people seated or 1,000 people for a reception.
“The draw of our new, year-round regional entertainment venue, Hawaiian Falls Waterpark and Adventure Park, combined with our business growth along SH 130 spurred significant interest from developers wanting to put hotels in Pflugerville,” PCDC Executive Director Floyd Akers said. “The park is not even open yet, and we already have two hotels committed to building in Pflugerville, and others in the pipeline.”
Also during the May 13 meeting, the Pflugerville City Council approved an economic development agreement proposed by the PCDC to sell 6.5 acres at the 130 Commerce Center to Village at a below-market rate of $2.50 per square foot. The PCDC will profit on the deal, resulting in a net gain of $1.13 per square foot on the sale of the property.
As part of the agreement, the PCDC will also provide an advertising and marketing budget of up to $25,000 per year for five years to recruit events and promote the center.
The City agreed to waive as an incentive, all city-required building fees, connection, tap and other permit fees for the development of the project, and the package includes Hotel Occupancy Tax (HOT) incentives to a maximum of $625,000 per fiscal year by the city.
The HOT incentives include: the city will pay the Village 100 percent actual revenues received from Ad Valorem Tax collected on the project for 15 years from the date the Village closes on the property. After the 15th year, the incentive will reduce each year by 15 percent until reaching a 25 percent and shall remain at 25 percent for an additional 10 years. The city will reimburse Village an amount equal to half of the Actual Project Sales tax, which is the one-cent sales tax revenue collected by the city from retail stores, restaurants and businesses in the project for 15 years with a maximum incentive of $50,000 per fiscal year of the city for 30 years. The City will pay the Village 100 percent of HOT incentive revenue generated and collected from the business and 75 percent of HOT revenues collected from the next four hotels in Pflugerville to cover expenses of furniture, fixtures and equipment purchases for the conference center.
Construction must begin by September 30, 2015, in accordance with the agreement, but developers told council members during the May 13 meeting that they plan to break ground by the end of the year. The hotel will be completed within 14 to 20 months, or by May 2016, per the agreement.
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.
About the City of Pflugerville: The City of Pflugerville, Texas has it all: connectivity via major highway access, economic development, retail opportunities, a strong school district and great recreational amenities. Located in Travis County just north of the state capitol, Pflugerville is a fast-growing city, home to more than 50,000 residents who enjoy safe streets, a beautiful trail system and share incredible community spirit. Pflugerville combines trails and community with business opportunities and is the place where quality meets life. Connect with Pflugerville at www.pflugervilletx.gov.