Title
Discuss and consider action to approve a Purchase and Sale Agreement (PSA) with Griffin Swinerton, LLC for construction of "The Monarch," the multi-generational recreation center, within Downtown East, and authorize the City Manager to execute the same.
Summary
The proposed Purchase and Sale Agreement (PSA) outlines the terms in which Griffin Swinerton, LLC, the master developer of the Downtown East project, will construct The Monarch (Multi-Generational Recreation Center) within the budgeted amount of $82.1M. The cost for The Monarch is $81,721,788.89, excluding the retail component which is being funded by Griffin Swinnerton. The cost for the project includes $4,512,735.77 for pre-development activities, including design, and $77,209,053.12 for construction. Additionally, Griffin Swinnerton is responsible for the cost of construction of the retail elements of the facility at a total cost to the developer of $2,514,873.55.
Phase One of Downtown East includes the construction of The Monarch (the Multi Generational Recreation Center), City Hall, plaza, retail, parking 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 Swinterton, LLC’s obligations under the PSA for The Monarch will be considered complete.
Construction on The Monarch is anticipated to begin in April.
This item meets all four of the Council’s Strategic Goals, as well as Goal 2.2 of the Aspire 2040 Comprehensive Plan to pursue a mixed-use project with municipal facilities through a master developer arrangement.
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 28, 2023, 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
Future consideration related to the retail component of The Monarch include commercial condominium documents, parking agreement, and a retail agreement are anticipated for consideration by City Council in Spring 2025.
Prior City Council Action
On February 25, 2024, 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 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
Deadline for City Council Action
Action is requested on March 11, 2025
Funding Expected: Revenue __ Expenditure _X_ N/A ___
Budgeted Item: Yes _X_ No __ N/A __
Amount: $81,721,788.89 ($4,512,735.77 for pre development activities plus $77,209,053.12 for construction)
Legal Review Required: N/A ___ Required _X_ Date Completed: March 6, 2025
Supporting Documents
Purchase and Sale Agreement (Including Exhibit B)
Exhibit A - Installment Payment Schedule
Exhibit C - Guaranteed Maximum Price (GMP)
Exhibit D - Construction Schedule
Exhibit E - Conditions and Assumptions
Recommended Action
Motion to approve as presented