Title
1.) Executive Session Item: Deliberation regarding Economic Development pursuant to Section 551.087 of the Texas Government Code, economic development projects and promotional activities pursuant to Tex. Loc. Gov’t Code § 505.103 for Project Anchor.
Summary
This item is included on the agenda to allow for discussion on its topic. The City Council is expected to retire to an executive session to discuss the item regarding economic development negotiations, pursuant to Chapter 551.087 of the Texas Government Code. Project Anchor is an initiative outlined in CEDS 3.0 and continues to support the city’s future growth. Project Anchor is an Economic Development Services Agreement pursuant to Tex. Loc. Gov’t Code § 505.103, which authorizes expenditures for promotional purposes by a Type B economic development corporation. Under the terms of the agreement, the Economic Development Corporation (EDC) will provide up to $1,176,000.00 over three (3) years for economic development and promotional services designed to support business attraction, accelerator and cohort programming, soft-landing opportunities, workforce and educational partnerships, industry engagement, marketing and promotion, and the development of a pipeline of businesses evaluating substantive operations within Pflugerville.
Project Anchor is intended to operate in coordination with Project XPAND by identifying and engaging businesses that may progress from initial engagement with Pflugerville to soft-landing activity, expansion, permanent business operations, or potential occupancy within the XPAND Facility. Project Anchor and Project XPAND are separate projects governed by separate agreements, and Project Anchor does not guarantee or assume responsibility for the performance obligations established under the Project XPAND agreement.
Payments under the Project Anchor agreement are performance-based and contingent upon Q-Branch's delivery of the required services and satisfaction of the applicable services, reporting, and verification requirements established in the agreement, although this is not a traditional Performance Agreement under Tex. Loc. Gov’t Code § 501.158 [Performance Agreement Requirements] but rather a Marketing and Promotional Services Contract authorized under a promotional spending cap of 10% of annual economic development corporation revenues under Tex. Loc. Gov’t Code § 505.103 of which there is a recent precedent under a similar initiative called Project Plug & Play in Cedar Park, Texas
The PCDC Board approved this item at the Regular Board Meeting on September 16, 2026.
Prior City Council Action
N/A
Deadline for City Council Action
Action is requested on October 13, 2026
Funding Expected: Revenue __ Expenditure _X_ N/A __
Budgeted Item: Yes __ No _X_ N/A __
Budgeted Source: N/A
Budgeted Amount: N/A
Amount: $1,176,000
1295 Form Required? _Yes__ No _X_
Legal Review Required: N/A _X_ Required __ Date Completed: ___________
Supporting documents attached:
N/A
Recommended Action
Discuss only.