Development Corp. Proposes Amendment to Release $4.5 Million Obligation as Typhoon Texas Plans Additional Capital Investment in Pflugerville Waterpark
Friday, November 16, 2018
PFLUGERVILLE, Texas (Nov. 16, 2018) — The Pflugerville Community Development Corporation (PCDC) Board of Directors yesterday approved a proposed amended contract with Typhoon Texas, removing any financial obligation by the PCDC to repay the $4.5 million the company has invested for improvements to the corporation’s property during the past two years, according to PCDC Executive Director Amy Madison.
Under the revised agreement, Typhoon Texas is required to make additional capital improvements prior to the 2019 summer season and develop a year-round restaurant concept planned to open in 2020. In turn, PCDC will fund improvements for traffic and pedestrian access to the park. The Pflugerville City Council will review and consider the amended contract for final approval at the Nov. 27 regular meeting.
“This is not just a waterpark—it is an economic engine that brings new visitors to our community that support hotel, restaurant and retail establishments, and a profound impact on sales tax generation,” Madison said. “This proposal not only focuses on providing safer and more direct access to our property to achieve a long-term goal of a year-round restaurant, but also gives us the flexibility to be involved in expansion of the park as well as other projects.”
The revised agreement removes PCDC’s obligation to set aside a $4.5 million reserve, thereby releasing $1.8 million already in reserves, $900,000 in the current-year budget, and any further reserve payments over the next three years.
“The amended contract removes financial obligation by the PCDC and frees up $2.7 million for other economic development projects,” PCDC Board of Directors President Ken D’Alfonso said. “We hear from our residents and visitors that Typhoon Texas exceeds expectations in cleanliness, safety and overall customer experience. It is with great confidence that we work with Typhoon Texas on improvements to the park to ensure continued future growth and long-term success.”
Following are details of the amended contract between PCDC and Typhoon Texas:
- PCDC is released from the obligation to repay any portion of the $4.5 million invested into the park by Typhoon Texas.
- PCDC will no longer provide a $25,000 annual marketing grant through 2021.
- Typhoon Texas will renovate a portion of the main building and operate a year-round restaurant venue expected to open in 2020.
- Typhoon Texas will provide PCDC with a 2018 lease payment of $650,000 and invest $500,000 for approved capital improvements by May 1, 2019.
- PCDC will fund improvements to the park entrance at FM 685 and Town Center Drive, providing enhanced traffic and pedestrian access.
- Typhoon Texas may leverage the property as collateral to secure a loan to fund a new attraction. The loan would be the sole responsibility of Typhoon Texas, and the company must present concepts and financing details to the PCDC Board of Directors for final approval.
“We are extremely proud to be part of the Pflugerville community. We have experienced a warm reception during the first two years of operation and we continue to see great opportunity to build the Typhoon Texas brand as a premier waterpark in Central Texas.” Typhoon Texas CFO and co-owner Ray DeLaughter said. “As always, our focus remains on delivering a high-quality guest experience. PCDC has been a great partner and we continue to work together in the effort to provide a waterpark asset the Pflugerville community can be proud of today and in the future.”
The original ground and operating lease agreement between PCDC and Typhoon Texas for the Pflugerville waterpark was finalized and approved Jan. 3, 2017. It includes options to renew in 10-year increments up to 2038.
The timeline in the new agreement for the road construction and main entrance to the park includes construction beginning after Sept. 3, 2019, with completion by April 30, 2020, to avoid disruption during Typhoon Texas’ peak season.
Typhoon Texas in Pflugerville is open daily from Memorial Day weekend through Labor Day annually, with additional bonus days during weekends in September. Season passes for 2019 are available now at www.typhoontexas.com.
View PDF version of release HERE
Category: Press Release