Title
Discuss and consider action to approve an ordinance on first reading with the caption reading: An ordinance authorizing the lease of city property to located at 605 E. Main Street, Suite 101, Pflugerville, Texas to be located in the new City Hall; with Two Brews LLC; providing cumulative, repealer and severability clauses; and establishing an effective date.
Summary
Two Brews LLC operates West Pecan at 100 West Pecan Street, a long-standing community gathering spot that has contributed to Downtown activation through initiatives such as the Pecan Street Collective and the Coffee & Pfuel partnership with the City. As planning for the new City Hall progressed, the goal was to create a welcoming third space for residents rather than a building used solely for municipal functions. West Pecan was identified as the ideal local partner to help realize this vision, and their grab-and-go service model aligns well with the building’s design and daily activity.
The lease begins on or about November 2, 2026, and ends on January 1, 2030. The lease start date, referred to as the “Delivery Date,” marks when the City can allow the tenant to operate within the building pending construction. Rent for the first year totals $15,600, with monthly payments of $2,600 beginning 180 days after the Delivery Date. Rent for years two and three totals $31,200 annually, paid in monthly installments of $2,600. Beginning in year four, rent will adjust to fair market value. The tenant is responsible for maintenance and repairs, common area maintenance, utilities, and insurance, and a security deposit equal to one month’s rent is required.
This lease supports Downtown East Project Goals by strengthening high-quality retail and dining offerings, enhancing family-friendly gathering spaces, expanding cultural and social amenities, and activating a community-oriented third space within City Hall.
It also advances key Strategic Plan goals by creating a welcoming, community-focused environment and supporting a strong local business. The lease reinforces the Community Social Fabric & Neighborhood Character pillar by adding an inclusive gathering space and furthers Economic & Business Development by activating Downtown East with a high-quality, locally rooted retail partner.
Prior City Council Action
• On November 25, 2025, City Council approved the creation of the Downtown East Commercial Community, Inc (property owners association) and related supporting documents.
• 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 Swinerton 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
August 25, 2026
Funding Expected: Revenue _X_ Expenditure __ N/A __
Budgeted Item: Yes __ No _X_ N/A __
Budget Source: _____N/A_______
Budgeted Amount: _____N/A_______
Amount: $15,500 for year one.
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: August 27, 2026
Supporting documents attached:
Ordinance Two Brews LLC Lease
Commercial Lease Agreement Two Brews LLC
Recommended Action
Approve ordinance on first reading.