The Pflugerville City Council announced and voted on an economic development agreement expected to bring a 650,000-square-foot, $40 million furniture center to town.
$40 million furniture center heading to Pflugerville
The agreement is the largest economic deal for the city this year and likely in the past several years. The deal, known as Project California, is with California-based furniture company Living Spaces, said Mayor Jeff Coleman. Council members unanimously approved the agreement at their Tuesday night meeting.
“We will be the first fulfillment center for them in the state of Texas,” Coleman said. “This is an incredible opportunity for the city of Pflugerville.”
The center is slated to be built on a more than 60-acre site at the southwest corner of Heatherwilde Boulevard and Texas 45 just north of Meister Lane, said Assistant City Manager Trey Fletcher.
Coleman said having the furniture center within city limits has the added benefit of the city receiving all sales tax for its online orders.
“Since the day I was elected, we’ve talked about how we need a destination retail, and this is destination retail,” Coleman said. “We’re now going to see people come into Pflugerville and spend their money here rather than our neighbors spending their money in Round Rock, Cedar Park, Austin and Georgetown. So in my mind that is a wonderful thing.”
Per the agreement, 50 percent of sales tax generated from store sales will go back to the company at a maximum cap of $3 million over 10 years, said city spokeswoman Terri Toledo. Living Spaces anticipates that they will make $60 million in sales in the first year, she said.
Toledo said the agreement, which was in discussions for a few months, will not impact taxpayers because the terms of the agreement are such that all of the money that goes back to the company is based on their sales and success.
The new center is expected to create about 100 full-time jobs, she said.
Toledo said the Pflugerville Community Development Corporation, a quasi-governmental agency that works to boost the city’s economy, was not involved in the economic agreement.
At least 150,000 square feet is slated for open retail space for walk-in customers, with a 400,000-square-foot fulfillment center, Hyde said. The building is expected to be at least twice the size of the Ikea store in Round Rock.
Construction for the facility is anticipated to take 18 months following closing on the property, which should take about six months, he said.
The furniture company currently has 18 stores in California and Arizona with a store in Nevada coming soon, according to its website.
The economic agreement announcement came just days before the opening of Pflugerville’s first hotel within city limits, another milestone for the city. The ribbon cutting for Best Western Plus Pflugerville Inn & Suites hotel, a 70-room hotel located in the 130 Commerce Center, was held Thursday.
Nicole Barrios, Austin Community Newspapers Staff, Austin Statesman, 9/19/16, statesman.com