PCDC Finalizes Settlement Agreement with Cortec
Thursday, June 29, 2017
PFLUGERVILLE, Texas (June 29, 2017)—The Pflugerville Community Development Corporation (PCDC) received final approval by the Pflugerville City Council June 27 on a settlement agreement with Cortec Precision Manufacturing to refund proceeds from a discounted land sale after failing to meet all the terms in the March 2014 performance agreement.
The new settlement agreement provides the PCDC with a five-year lease agreement plus the option to renew for another five years in the new building Cortec has constructed at Helios Way and Sun Light Near in the 130 Commerce Center. With the agreement, PCDC will be reimbursed $217,101 by Cortec during their five-year lease of 3,775 square feet in the form of rent savings, tenant finish-out allowance and other benefits. “We worked strategically to come up with a fair settlement agreement to be reimbursed for the originally discounted land sale since the terms of the performance agreement were not fully met.
“We worked creatively to achieve a win-win scenario for this longtime Pflugerville resident to bring his business here, and for the PCDC to address some economic development needs,” PCDC Executive Director Amy Madison said.
Cortec is a 40-year-old company headquartered in San Jose, Calif. that manufactures high quality sheet metal. The company is making a $20 million capital investment in a 130,000 square foot manufacturing facility on an 8-acre tract of land the company bought from the PCDC in 2014.
Cortec plans to relocate its 125 employees and expand in Pflugerville, and are currently underway on the tenant finish-out in the building.
According to an impact study conducted in 2014 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
Pflugerville, Texas, ranks 12th on MONEY Magazine’s list of Best Places to Live in America in 2016, and is the 11th fastest growing city in the U.S. 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.
Category: Press Release