Title
Approving a resolution committing the use of up to $8,000,000 from Reinvestment Zone #1 for the purpose of funding a multi-level public parking structure for the Downtown East Project; Repealing all resolutions or parts of resolutions in conflict herewith; Providing a severability clause; Providing a savings clause; Finding and determining that the meeting at which the resolution is passed is open to the public as required by law; and providing an effective date.
Summary
As the Downtown East project design has progressed, the ability to construct a parking structure within Phase One of the project has been considered. With anticipated project savings on infrastructure and earned interest, it is anticipated that a parking structure to support Phase 1A is feasible. Additional funding up to $8M may be needed in order to construct a 5-story parking structure that will house approximately 500 parking spaces that would serve the Multi-Generational Recreation Center, City Hall, and Phase 1 Retail. Construction of a parking structure within Downtown East will eliminate the need for temporary surface parking lots that were originally assumed on Lots 1 and 7, allowing the project to be more financially and environmentally friendly by eliminating the temporary nature of the parking lots that were originally considered.
Constructing a parking structure instead of a surface parking lot in a mixed-use development offers several key benefits, particularly for the city's long-term vision for Downtown East. The parking structure enables the parcels on the north side of the project to more quickly develop and support the planned density, as those areas would remain vacant until Phase 2 of the development. By consolidating parking in a structured facility, the development can also create more pedestrian-friendly spaces, promote walkability, and improve access to city services, retail, and amenities. Overall, a parking structure is a more sustainable and efficient solution that aligns with the Council's goals for environmental sustainability and resilience, while supporting the vitality and functionality of both the development and surrounding city facilities.
Funding for the structure is proposed to be supported by TIRZ #1 and is within the project plan recommend by the TIRZ Board and approved by City Council in October 2022. If approved, staff will begin working with Griffin Swinerton on the design documents for the parking structure and request Council action on issuance of TIRZ funds, up to $8M, once design is complete and the final construction price is known.
Downtown East History
The Downtown East project is located on +/-29 acres located at the northwest corner of Pecan Street and FM 685. Discussions for Downtown East have included aspirations to leverage the central Pflugerville location to become a mixed-use development with connections to Main Street and the City's hike and bike trail network anchored by the proposed new multi-generational recreation center and new city hall.
An Exclusive Negotiating Agreement (ENA) was approved on March 28th, which established the expectations of the development partnership and performance of preliminary development activities necessary to achieve the goals outlined by City Council for the Downtown East project. The ENA outlined the general roles, as well as the responsibilities, terms and obligations of both the City and the City's development partners Griffin Swinerton and Catellus. The ENA recognized the need for additional agreements, referred to as Preliminary Development and Definitive Agreements, that come as the development progresses.
On November 28, 2023, Council approved a Preliminary Development Agreement (PDA) for the project. The PDA process for the project is defined as a as a two-phase project with Griffin Swinerton as the master development partner. Within the PDA, Phase One was outlined and consists of all elements required for the delivery of a City Hall and café, Multi-Generational Recreation Center, 10,500sf of retail within the Recreation Center, a plaza, and infrastructure extensions including utilities, surface parking, and Main Street extension from Railroad to FM685. Through the PDA, Griffin Swinerton advanced the designs for Phase One allowing for the project to proceed with a guaranteed maximum price to deliver each facility as well as the infrastructure to support the project. As part of the PDA, Griffin Swinnerton also committed to funding a minimum of $2.5M towards the delivery of 10,500 square feet of retail within Phase One of the project. The approval of the PDA also included the master planning and entitlements for Phase Two of the Downtown East project in order to competitively position this portion of the project for future development as market conditions evolve.
Funding for improvements within Phase One includes General Obligation (GO) and Certificate of Obligation (CO) bonds, Tax Increment Reinvestment Zone (TIRZ) funds, Pflugerville Community Development Corporation (PCDC) budget allocation, and contributions by Griffin Swinerton.
Future City Council Action
A ground lease for the Downtown East tract will be presented for Council consideration on November 19, 2024.
A professional services agreement related to the Multi Generational Recreation Center and City Hall will be considered by Council in early 2025. Future consideration related to the retail component of the Multi Generational Recreation Center include commercial condominium documents, parking agreement, and a retail agreement are anticipated for consideration by City Council in early 2025.
Prior City Council Action
Downtown East Related Actions:
On August 13, 2024, City Council approved the rezoning of the Downtown East Project to Planned Unit Development (PUD)
On November 28, 2023, City Council approved a Preliminary Development Agreement for the project
On March 28, 2023, City Council approved an Exclusive Negotiating Agreement for the project
On January 10, 2023, City Council approved the selection of Griffin Swinerton and Catellus as the master development team for the Downtown East project.
On July 26, 2022, City Council authorized staff to proceed with the solicitation of a master developer, project funding, a pursuing a request for funding from the Pflugerville Community Development Corporation (PCDC)
The Downtown Community Stakeholder Committee was appointed by City Council on May 10, 2022 and reappointed on June 14, 2022
Goals were adopted by City Council for the project on April 12, 2022
Professional Services Agreements were approved by City Council January 25 and February 28, 2022 for owner's project representatives and advisor services
TIRZ Related Actions: City Council approved the Downtown Action Plan by Resolution No. 1949-22-02-08-0963 on February 8, 2022, which identified including Downtown within a TIRZ as a project. Additionally, On February 8, 2022, City Council approved Resolution No. 1947-22-02-08-0961, supporting the creation of a TIRZ and the preparation of a project plan and financing plan. On October 11, 2022, City Council held a public hearing and adopted an ordinance on first reading approving the Fourth Amendment of the Project Plan and Financing Plan for Reinvestment Zone Number 1.
Deadline for City Council Action
Action is requested on November 12, 2024
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: Up to $8M
Legal Review Required: N/A ___ Required _X_ Date Completed: November 7, 2024
Supporting Documents
Resolution
Recommended Action
Motion to approve the resolution as presented.