Pflugerville Community Development Corporation Refinances $24 Million Loan for Waterpark
New loan removes City of Pflugerville from financial obligations and locks in low interest rate.
PFLUGERVILLE, Texas (March 1, 2017)—The Pflugerville Community Development Corporation (PCDC) plans to refinance its outstanding $24 million loan this month through Hancock Whitney Bank following a restructure headed by the organization’s financial advisor, First Southwest out of Dallas. The loan was originally secured by PCDC in 2014 for the purchase of a 25-acre tract of land and development of the waterpark now known as Typhoon Texas. PCDC is refinancing the remaining balance to take advantage of current low market interest rates.
“The PCDC has grasped favorable market conditions to refinance their $24 million waterpark loan,” Pflugerville Mayor Victor Gonzales said. “The Pflugerville City Council has authorized the PCDC to refinance to a 15-year loan, which removes any City of Pflugerville loan obligations and responsibly locks in a competitive interest rate.”
The groundwork for the PCDC refinance began last year, according to PCDC Executive Director Amy Madison.
“We focused in 2016 on laying a solid financial foundation to prepare for this refinance to include land sales, debt retirement, recruitment of a new park operator, and strong fiscal management of available resources. The fact that we were able to refinance our loan with this favorable interest rate in a long-term loan is a testament to what we’ve been able to accomplish financially,” Madison said. “Now, we can better focus on the business of economic development and bringing new businesses to Pflugerville.”
The term sheet and bid package were sent to more than 30 potential bank bidders across the nation, and four bids were received. After final review of terms, Hancock Whitney Bank was selected. The loan closing is now set for mid-March to refinance $24 million in a 15-year loan at 4.295 percent interest.
In January, PCDC approved Typhoon Texas as the new operator of the waterpark at 8500 North SH 130 Service Road SB in Pflugerville. Typhoon Texas expects to invest at least $4.5 million into the park before opening this May for its first summer season. This is the second location for Typhoon Texas, which opened its first park last year just outside of Houston in Katy, Texas.
About the Pflugerville Community Development Corporation
Pflugerville, Texas, is the 11th fastest growing city in the U.S. and ranks 12th on MONEY Magazine’s list of Best Places to Live in America in 2016. With a population of more than 55,000, Pflugerville is located just minutes north of downtown Austin in the desirable Central Texas region. State highways 45 and 130 and Interstate Highway 35 offer direct access to other nearby cities and a quick route to nearby airports. Hometown pride and quality of life are top priority, with residents enjoying the beautiful Lake Pflugerville, an elaborate trail system, shopping areas, new restaurants, and the community’s many parades and festivals.
PCDC is responsible for attracting, retaining and expanding businesses to create new jobs and increase tax revenue to support community development. PCDC can provide funding for use as an incentive to companies locate and grow 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. For more information, visit www.pfdevelopment.com.