PFLUGERVILLE CITY COUNCIL APPROVES PCDC AGREEMENT WITH AMAZON TO INVEST $250MM AND CREATE 1,000 FULL-TIME JOBS
15 Jul 2020
Press Release, Alerts
PFLUGERVILLE, Texas (July 15, 2020) — The Pflugerville City Council approved a performance agreement between the Pflugerville Community Development Corporation (PCDC) Board of Directors and Amazon.com Services LLC. on consent agenda during their July 14 regular meeting following unanimous approval by the PCDC Board at a Special Meeting convened earlier at 6 pm.
“We are proud that Amazon has chosen Pflugerville for a distribution center increasing employment opportunities, while contributing $250 million to the tax base and set the stage for continued growth along the Pecan Street and SH 130 corridor,” Mayor Victor Gonzales said. “The Pflugerville Community Development Corporation has provided support to both Amazon and the City of Pflugerville with the necessary intersection improvements at FM 685 and Pecan Street to keep everyone moving. This managed growth is an investment into our city and we welcome Amazon to our community.”
The PCDC is funding up to $3.8MM to the City of Pflugerville for transportation improvements at FM685 and Pecan Street and in return, Amazon commits to invest $250 MM in capital investment in a facility with a minimum footprint of 820,000-square-feet and provide 1,000 full-time primary jobs during the 10-year term of the agreement, according to Amy Madison, PCDC Executive Director.
“Prior to this project, the 94 acres where Amazon is locating were not in the City limits and provided no tax base,” Madison said. “We are entering into a binding agreement to provide additional infrastructure improvements benefitting all businesses and residents in exchange for Amazon’s commitment to creating jobs and providing a substantial annual tax base for the City.”
The PCDC is funding the transportation improvements with a half-cent sales tax set aside for economic development to allow the previously unfunded City road improvement to occur without directly impacting local property taxes or the one-cent sales tax collected by the City.
Madison added that Amazon has already had a positive impact on the Pflugerville community. During the early construction phase, the project has generated sales tax and paid permit fees that have offset the significant declines from other City revenue sources due to the COVID-19 pandemic and contributed to the City’s current 15.7% year-over-year growth in overall sales tax from FY19.
The FM 685 and Pecan Street improvements will provide operational advantages, including the construction of a crossover, displaced left-turn lane which is the first of its kind in Pflugerville to enhance traffic mobility along the Pecan Street Corridor. The construction is expected to be completed by July 2021 and will be paid to the City out of PCDC encumbered funds in fiscal years 2021 and 2022. Amazon is required to begin operations on or before December 31, 2022.
View PDF version of release HERE