Title
Discuss and consider action to approve a Purchase and Sale Agreement (PSA) with Griffin Swinerton, LLC for construction of the Downtown East parking structure, and authorizing 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 Downtown East parking structure at a guaranteed maximum price of $18,183,480.24. The cost for the project includes $2,519,249.24 in soft costs, including design, and $15,664,241.00 for construction.
As the Downtown East project design has progressed, the ability to construct a parking structure within Phase One became a viable option as funds from project savings on infrastructure and earned interest were realized as well as funding from the TIRZ as approved by Council in November 2024 and cost savings from City Hall (see item 2025-0802). The proposed cost is within the overall cost assumed for the Downtown East Project of $223M.
With this PSA, Griffin Swinerton will construct a 5-story parking structure that will create approximately 465 parking spaces that will serve The Monarch, City Hall, and Phase 1 Retail. Construction of a parking structure within Downtown East will eliminate the need for temporary surface parking lots that were originally assumed on Lots 1 and 7, allowing the project to be more financially and environmentally friendly by eliminating the temporary nature of the parking lots that were originally considered.
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 Swinerton, LLC’s obligations under the PSA the parking structure will be considered complete.
Constructing a parking structure in lieu of a surface parking lot in a mixed-use development offers several key benefits, particularly for the city's long-term vision for Downtown East. The parking structure enables the parcels on the north side of the project to more quickly develop and support the planned density, as those areas would remain vacant until Phase 2 of the development. By consolidating parking in a structured facility, the development can also create more pedestrian-friendly spaces, promote walkability, and improve access to city services, retail, and amenities. Overall, a parking structure is a more sustainable and efficient solution that aligns with the Council's goals for environmental sustainability and resilience, while supporting the vitality and functionality of both the development and surrounding city facilities.
The parking structure is being designed with the option of adding retail to the first floor fronting Main Street in order to offer future commercial opportunities along Main Street. In the interim, a park will be constructed in order to offer engaging opportunities for the public.
Funding for the structure is supported by TIRZ #1 and is within the project plan recommend by the TIRZ Board and approved by City Council in October 2022.
Construction of the parking structure is anticipated to begin in October 2025.
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 Plan, is in alignment with the Guiding Principles established with the Aspire 2040 Comprehensive Plan and is in alignment with the goals established by Council for the Downtown East project. The Downtown East Project aids in addressing Action 4.2 of the 2026-2030 Strategic 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.
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 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.
Prior City Council Action regarding Downtown East
• April 22, 2025, City Council approved an amendment ground lease with Griffin Swinnerton 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 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 for the project
• On November 12, 2024, City Council approved a license agreement with Griffin Swinnerton 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, 2024, City Council approved the rezoning of the Downtown East Project 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 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 October 14, 2025
Funding Expected: Revenue __ Expenditure _X_ N/A ___
Budgeted Item: Yes _X_ No __ N/A __
Budget Source: 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.
Amount: $18,183,499.24 Overall project remains within the budgeted amount of $223M
Legal Review Required: N/A ___ Required _X_ Date Completed: October 2, 2025
Supporting Documents
Purchase and Sale Agreement (Inclusive of Exhibit B)
Exhibit A - Installment Payment Schedule
Exhibit C - Guaranteed Maximum Price Schedule of Values
Exhibit D - Construction Schedule
Exhibit E - Developer Conditions and Assumptions
Recommended Action
Motion to approve as presented