Title
Approving the creation of the Downtown East Commercial Community, Inc. (the “Association”), Commercial Condominium for Parcel 4 (The Monarch), and related supporting documents to include a Master Covenant, Master Condominium Declaration, Community Manual, Certificate of Formation, Management Certificate for Downtown East, Organizational Consent, Notice of Applicability, Condo Plat and Parking Use Agreement, and authorizing the City Manager to execute the same.
Summary
The Downtown East development includes multiple public and private buildings, public open spaces, and shared infrastructure. To ensure these spaces are consistently planned, maintained, and governed, two related and complementary entities are being created:
1. The Downtown East Commercial Community, Inc. - a property owners association established through a Master Covenant that applies to all parcels within the 29-acre Downtown East site.
2. The Commercial Condominium for Lot 4 (The Monarch) - established through a Master Condominium Declaration creating two ownership units for the Rec Center and the Retail attached.
Downtown East Commercial Community, Inc.: A property owners association is proposed for the overall 29-acre Downtown East development to establish shared responsibilities for the maintenance and management of common areas, architectural controls and coordination of current and future development, as well as to define the ownership structure for the multiple public and private commercial components within the project area.
A property owners association created by a master covenant is an appropriate real estate framework for large developments with multiple building owners, as it clearly defines ownership boundaries, assigns proportional ownership interests, allocates responsibilities for the shared (common) elements, and provides a foundation for future real estate transactions within Downtown East. The proposed property owners association will encompass the 29-acre Downtown East site located at the northwest corner of FM 685 and Pecan Street.
Commercial Condominium for Lot 4 (The Monarch): within Phase I of Downtown East, The Monarch on Lot 4 includes approximately 130,000 square feet of recreation space funded, owned, and maintained by the City and 10,500 square feet of retail space funded, owned, and maintained by Griffin Swinerton. The Lot 4 commercial condominium will formally establish the ownership and maintenance parameters for the Rec Center Unit and Retail Unit portions of the overall building.
Master Covenant: For the overall Association, this document sets community-wide management standards for the Downtown East development. The Covenant articulates property use restrictions, design standards, maintenance rules, and master association authority.
The Association will be responsible for contributing to the maintenance of the common areas within the 29 acres of Downtown East, including the parking structure, central plaza, and landscaping along all interior streets (i.e., Main Street, Wanderlust Way, and Pollinator Path). As additional parcels within Downtown East are developed, such future building unit owner will be subject to the Association’s governing documents and will contribute maintenance fees. This shared funding approach will help reduce the City’s long-term maintenance costs for the common areas within Downtown East.
The framework for how the community association will operate is defined through governing documents, which will apply to all current and future building unit owners within the Downtown East Development. Throughout these documents the City is referred to as the Declarant. These documents include:
Certificate of Formation: The Certificate of Formation is the foundational document that formally establishes the condominium association. It defines the Association’s name (Downtown East Commercial Community, Inc.), purpose, and governance structure. The Association is a nonprofit corporation and Membership is limited to individuals or entities holding all or a portion of the fee simple interest in any Lot or Condominium Unit within the Downtown East Project. Upon initial formation, ownership is shared between the City and Griffin Swinerton. The Condominium Plat for Parcel 4 defines the two spaces within The Monarch between the recreation center and the commercial area of the building. As Phase II of the project is developed, the City Council will review and determine ownership of the undeveloped lots within the project, which will be subject to the governance and obligations of the associated Condominium Association.
Master Condominium Declaration for Lot 4 (The Monarch): This document establishes a condominium regime on the property in accordance with state law and defines individual units for the Rec Center and Retail and common elements on Lot 4. The Declaration also outlines owner rights, maintenance duties, and assessment procedures. The related Notice of Applicability articulates that the covenants related to the creation of the condominium is applicable to Lot 4.
Organizational Consent: This document authorizes specific actions and decisions without holding a physical meeting of the Association. It serves as an official record of the Association’s foundational approvals. This document satisfies state requirements for organizational approvals necessary to bring the association into legal existence.
Community Manual: The Community Manual articulates policies and procedures within the community association (i.e., association bylaws; membership; meeting requirements; board of directors’ requirements, powers and duties; collection of assessments; email registration).
Management Certificate: This certificate provides public notice of the association’s existence and contact information.
Parking Use Agreement: The license agreement allows for use of the parking structure by the retail development within The Monarch being established by Griffin Swinerton. Use of the parking structure was contemplated through the now executed Retail Memorandum of Understanding (MOU) included in the first amendment to the Preliminary Development Agreement (PDA) approved by City Council in November 2024.
This item is supported by Community Social Fabric & Neighborhood Pillar, Community Amenities and Events Pillar, Brand and Reputation Pillar, Economic and Business Development Pillar and Residential and Node Development Pillar of the 2026-2030 Strategic Action Plan, is in alignment with the Guiding Principles established with the Aspire 2040 Comprehensive Plan. The Downtown East Project aids in addressing Action 4.2 of the 2026-2030 Strategic Action Plan by 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. This item also supports the goals established for the Downtown East Project, including seeking opportunities, including seeking opportunities for public-private partnerships, to deliver a quality project that can meet the needs of our growing community while minimizing taxpayer burden and optimizing taxpayer investment in the land by utilizing infrastructure sharing cost savings to deliver a new city hall and other public and private amenities.
Downtown East History
The Downtown East development 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 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, 10,500 sf 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.
Between November 2023 and December 2024, design work for the project was underway and Purchase and Sale Agreements (PSA) for civil works was approved and construction began on the infrastructure in December 2024. PSAs for The Monarch and City Hall were approved and construction on these facilities began in April 2025. A final PSA for the parking structure, that supports Phase One, was completed in October 2025 and construction will begin in November 2025.
Prior City Council Action regarding Downtown East
• On October 14, 2025, City Council approved a Purchase and Sale Agreement (PSA) for the Parking Structure, an amendment to the PSA for City Hall, and an addendum to the PSA for the Civil Works.
• April 22, 2025, City Council approved an amendment ground lease with Griffin Swinerton 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 E. Main Street and intersection with FM685.
• On November 12, 2024, City Council approved a Purchase and Sale Agreement (PSA) with Griffin Swinerton 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 (PDA) for the project, including a Retail Memorandum of Understanding (MOU).
• On November 12, 2024, City Council approved a license agreement with Griffin Swinerton 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, 2023, City Council approved the rezoning of Downtown East 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 Downtown East.
• On July 26, 2022, City Council authorized staff to proceed with the solicitation of a master developer, project funding, and 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, 2025
Funding Expected: Revenue __ Expenditure ___ N/A __X_
Budgeted Item: Yes ___ No __ N/A _X_
Budget Source: N/A.
Amount: N/A
Legal Review Required: N/A ___ Required _X_ Date Completed: October 31, 2025
Supporting Documents
Certificate of Formation
Master Condominium Declaration
Master Covenant
Notice of Applicability - Lot 4
Condominium Community Manual
Management Certificate
Organizational Consent
Condo Plat - Lot 4
Parking Use Agreement
Recommended Action
Approve as presented