Title
Discuss and consider action to approve an amendment to the Purchase and Sale Agreement (PSA) with Griffin Swinerton, LLC for construction of City Hall within Downtown East, and authorizing the City Manager to execute the same.
Summary
In March 2024, City Council approved a Purchase and Sale Agreement (PSA) which outlined the terms in which Griffin Swinerton, LLC, the master developer of the Downtown East project, will construct the City Hall within the budgeted amount $86.9M. The total cost to deliver the City Hall was guaranteed to be delivered to the City at a cost not to exceed $86,886,289.75 for design and construction.
As construction has continued on City Hall since the Spring of 2025, Griffin Swinerton has realized savings to the project in the amount of $2.9M. The cost savings is a result of the guaranteed maximum price (GMP) for the project being established early in the design process, which occurred prior to the completion of 100% construction documents and before final permits were issued. This approach allowed the project to move forward efficiently, while providing flexibility to adapt as the design was refined. As is typical in construction projects, certain key elements, such as mechanical, electrical, and plumbing (MEP) systems, HVAC sizing, and distribution equipment, require detailed calculations that are finalized later in the design process. These final calculations can impact both the design and overall cost. Additionally, structural components were further developed during this phase, which ultimately led to cost savings. By setting the cost early but allowing for controlled adjustments as the design was finalized, the project was able to stay aligned with the original vision while ensuring feasibility and value for money.
Per the original PSA agreement with Griffin Swinerton, this savings would be to the benefit of Griffin Swinerton however, when considering the Downtown East project holistically, Griffin Swinerton has proposed an amendment to the City Hall PSA that reduces the guaranteed maximum price to $83,986,289.75, modifying the terms related to the savings to allow for the use of savings for City Hall costs to be allocated to the parking structure (see related item 2025-0662) and plaza costs (see related item 2025-0801) which are exceeding what was initially anticipated.
This approach will keep the overall Downtown East project cost within the approved $223 million budget. If Griffin Swinerton encounters unforeseen costs on City Hall construction that exceed the project's contingency, the City could be responsible for up to $2.9 million in additional costs. Should that occur, staff will return to Council with a proposed budget amendment for Council consideration. At this time, given that all contracts are in place and more than 95 percent of materials have been procured, no further cost increases for City Hall are anticipated which minimizes the risk to the City of any potential cost implications.
Phase One of Downtown East includes the construction of The Monarch (the Multi Generational Recreation Center), City Hall, plaza, retail, parking structure and related infrastructure. With each PSA, the City will make installment payments on the guaranteed maximum price for each component of the project. Upon final completion and final payment Griffin Swinerton, LLC’s obligations under the PSA for The Monarch Recreation Center will be considered complete.
This item is supported by Community Social Fabric & Neighborhood Pillar, Community Amenities and Events 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, 4.2 and 6.3 of the 2026-2030 Strategic Plan by bolstering the uniqueness of Downtown and its connection to nature, creating a high-quality mixed-use development that encourages green spaces and walkability 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 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: Cost Savings of $2.9M
Legal Review Required: N/A ___ Required _X_ Date Completed: October 2, 2025
Supporting Documents
Purchase and Sale Agreement Amendment
Recommended Action
Motion to approve as presented