Title
Approving an extension to the Preliminary Development Agreement (PDA) with Griffin Swinerton, LLC for the development of Downtown East and authorizing the City Manager to execute the same.
Summary
In November 2023, City Council approved a Preliminary Development Agreement (PDA) to allow Griffin Swinerton to begin preliminary development activities related to design and construction of the Downtown East 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, parking, and Main Street extension from Railroad to FM685.
The Term of the Agreement is set to expire on the earlier of sixty (60) days after the Developer submits its guaranteed maximum price (GMP) for the final Phase One component, or November 30, 2025. The City and Griffin Swinnerton have continued to make progress on the design plans for the Downtown Project and in order to ensure adequate time for design of the parking structure the term is proposed to be extended to December 31, 2025. This extension will provide both parties with the necessary flexibility to finalize the Preliminary Development Activities. Funding for the PDA was previously approved, no changes to the funding are proposed with this extension.
It is important to note that the Downtown East project will remain on schedule for a completion date of fall of 2026 and will include the parking structure, City Hall, The Monarch (Multi-Generational Recreation Center), the plaza and related infrastructure.
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.
History of the PDA:
Through the PDA, Griffin Swinerton advanced the designs for Phase One allowing for the project to proceed with a guaranteed maximum price (GMP) 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.
The first amendment to the PDA reflected a Retail Memorandum of Understanding (MOU), related to the 10,500 square feet of retail to be constructed and funded by Griffin Swinerton within the Multi-Generational Recreation Center, as well as a revised preliminary development schedule, restated city review schedule and preliminary development costs budget.
The first amendment to the PDA extended the period for which the PDA is active, allowing Griffin Swinerton the opportunity to further the final designs for the project in order to provide a guaranteed maximum price for the City Facilities prior to executing purchase and sale agreements for the various components of the project, including infrastructure Multi-Generational Recreation Center and City Hall.
This first amendment also confirmed the payment of certain Preliminary Development Costs already paid to the Developer under the Original Agreement and outlined a new arrangement for paying any remaining costs, in accordance with the Original Agreement.
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 as articulated above
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 The Monarch, including commercial condominium documents, parking agreement, and a retail agreement are anticipated for consideration by City Council in early 2025.
Prior City Council Action
On November 26, 2024, City Council approve a ground lease with Griffin Swinnerton for construction of the project
On November 12, 2024, City Council approved a purchase and sale agreement related to the infrastructure for the project, a license agreement, and a memorandum of understanding for recreation center retail.
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
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_
Legal Review Required: N/A ___ Required X Date Completed: March 5, 2025
Supporting Documents
Memorandum - Extension of Preliminary Development Agreement
Recommended Action
Motion to approve as presented.