Title
Discuss and consider action to approve an addendum to a Purchase and Sale Agreement (PSA) with Griffin Swinerton, LLC for infrastructure construction within Downtown East, and authorizing the City Manager to execute the same.
Summary
In November 2024, City Council approved a Purchase and Sale Agreement (PSA) for the civil infrastructure work related to the DE Project. This agreement included key components such as the extension of Main Street from Railroad to FM685 (including a bridge over Gilleland Creek), installation of utility infrastructure, a trail connection to Main Street, construction of a parking lot on the Gin Tract, the internal roadway network on the Pfluger tract, and the development of the central plaza and pedestrian promenade. The PSA organized the work into Phase 1A, which included all work on the Pfluger tract (29 acre parcel), and Phase 1B, including all work between Railroad and the western edge of the Pfluger tract.
Complete design for Phase 1A of the infrastructure package was in place at the time the PSA was executed, and construction began in December 2024. Phase 1B’s design and estimated GMP were included in the PSA with costs anticipated to be confirmed as the project worked through finalizing Phase 1B design. Now that the full infrastructure package is approaching design completion and actual construction costs are being confirmed, the total project cost is now guaranteed at $34M and construction is set to begin on Phase 1B in November 2025. This addendum reflects the decrease to the budgeted amount for infrastructure (“civil work”) from $35,049,762 to $34,049,762 and is inclusive of the funding allocated through the amendment to the City Hall PSA (see item 2025-0802).
Phase One of Downtown East includes the construction of the Multi-Generational Recreation Center (i.e. The Monarch), City Hall, plaza and promenade, retail, and related infrastructure which encompasses utilities, roadwork, and a parking structure., and a plaza. The proposed Purchase Price Addendum to the Civil Works PSA Purchase and Sale Agreement (PSA) updates outlines the purchase price/budget terms in which Griffin Swinerton, LLC, the master developer of the Downtown East project, will deliver components of the infrastructure to support the project (known as the "Civil Work").
This Downtown East project is supported by all the Pillars of the 2026-2030 Strategic Plan (Community Social Fabric & Neighborhood Pillar, Community Amenities and Events Pillar, Mobility Infrastructure and Connectivity Pillar, Brand and Reputation Pillar, and Residential and Node Development Pillar of the 2026-2030 Strategic Plan, is in alignment with the Guiding Principles established with the Aspire 2040 Comprehensive Plan and is in alignment with the goals established by Council for the Downtown East project. The Downtown East Project aids in addressing Actions 1.2, 2.1, 2.3, 3.1, 4.2 and 6.3 of the 2026-2030 Strategic Plan by bolstering the uniqueness of Downtown, creating a high-quality mixed-use development that encourages green spaces and walkability, expansion of trail connectivity and implementation of the Pforward Mobility Master Plan, activating downtown as a truly unique destination, as well as focusing on the revitalization and expansion of Downtown Pflugerville.
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 Swinerton 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.
Prior City Council Action regarding Downtown East
• April 22, 2025, City Council approved an amendment ground lease with Griffin Swinnerton to accommodate the property for the future parking structure.
• On March 11, 2025, City Council approved Purchase and Sale Agreements (PSA) with Griffin Swinerton, LLC for the construction of City Hall and The Monarch, as well as an extension to the Preliminary Development Agreement (PDA)
• On February 25, 2025, City Council approved the naming of the multi-generational recreation center to "The Monarch"
• On November 26, 2024, City Council approved ground lease with Griffin Swinnerton for the development of Downtown East
• On November 12, 2024, City Council approved a resolution for the advanced funding agreement (AFA) with TXDOT extension of Main Street and intersection with FM685
• On November 12, 2024, City Council approved a Purchase and Sale Agreement (PSA) with Griffin Swinnerton for the construction of infrastructure to support the Downtown East project.
• On November 12, 2024, City Council approved an update to the Preliminary Development Agreement for the project
• On November 12, 2024, City Council approved a license agreement with Griffin Swinnerton for the development of Downtown East
• On November 12, 2024, City Council passed a resolution committing the use of additional TIRZ funds to support a multi-level public parking structure.
• On November 28, 2023, City Council approved a Preliminary Development Agreement for the project
• On August 13, 2024, City Council approved the rezoning of the Downtown East Project to Planned Unit Development (PUD)
• 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
Deadline for City Council Action
Action is requested on October 14, 2025
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes _X_ No __ N/A ___
Budget Source: 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.
Amount: $400,000 increase to PSA (overall cost for Phases 1A and 1B of infrastructure totals $35,449,762.00); Overall project remains within the budgeted amount of $223M
1295 Form Required? Yes __ No __
Legal Review Required: N/A ___ Required _X_ Date Completed: October 2, 2025
Supporting Documents
Civil Works PSA Addendum No. 2
Recommended Action
Motion to approve as presented