Title
Approving an ordinance on second reading with the caption: An ordinance of the City of Pflugerville, Texas, approving the enlargement of the boundaries and the extension of the term of “Reinvestment Zone Number 1, City of Pflugerville, Texas”; repealing all ordinances or parts of ordinances in conflict herewith; providing a severability clause; providing a savings clause; finding and determining that the meeting at which the ordinance is passed are open to the public as required by law; and providing an effective date.
Summary
The Fourth Amendment proposes to expand the Zone boundaries by an additional 2,095 acres to include properties along the SH 45 and Downtown/Pecan Street corridors and extend the life of the Original Zone to 2052. (The Original Zone was set to expire in 2041.) The life extension applies to the Original Zone (Falcon Pointe) and expanded zone boundary, as proposed in this Fourth Amendment. The Fourth Amendment does not impact the Pecan District, which was annexed into the Zone as part of the Second Amendment in 2018, which shall expire in 2058.
The purpose of the boundary expansion is to support new development and reinvestment along the Downtown/Pecan Street and SH 45 corridors through the use of a combination of tools and initiatives, including a Reinvestment Zone. The Downtown/Pecan Street corridor includes the commercial portions of Downtown, which is the historic center of the community, as well as surrounding vacant properties or properties that could potentially redevelop over time. While infrastructure is available in the Downtown core, it will continue to become outdated and/or inadequate to support new and/or desired types of development. Additionally, mobility and safety improvements, including those related to the pedestrian and roadway systems, will be needed to enhance the viability of redevelopment and create the base public amenities necessary to support the Downtown area as a financially sustainable and market competitive destination. The eastern portion of the proposed Zone includes primarily vacant agricultural properties, currently with limited infrastructure and roadway connectivity to support new development. The proposed SH 45 corridor portion of the Zone boundary is also predominately open and undeveloped and will not likely develop with higher intensity uses in the near future without infrastructure improvements, including water, wastewater and roads.
The project costs for the Fourth Amendment are detailed in Table 1, which includes a total of $131,500,000 of authorized project costs. Projects include infrastructure improvements, including detention/drainage, water and sewer, streetscape enhancements and connectivity, parks, trails and recreation improvements, public and cultural facilities and economic development. The project categories reflect the types of projects supported by the TIRZ; however, actual projects that will be undertaken by the TIRZ will be based on factors including community development/redevelopment priorities, leveraging of funds and available increment.
Non-Project costs are those infrastructure costs that will not be funded or reimbursed by the TIRZ but will be funded by other parties, such as the City, County, the Texas Department of Transportation or private sources, including developers. Funding identified in Table 1 will be leveraged with other sources to secure Non-Project funding when appropriate and available.
Legal has approved the ordinance.
Background
The Pflugerville Reinvestment Zone One was established by the City Council on December 14, 2010, by Ordinance No. 1063-10-12-14. The Zone was originally created to spur the development of Falcon Pointe, a master-planned community located in the eastern portion of the City, in the vicinity of State Highway 130 and Pflugerville Parkway. The Original Zone encompasses approximately 394 acres and includes single-family, multi-family, commercial/retail uses and recreational uses. Since the Zone’s creation, the majority of projects associated with this development have been completed, including portions of Colorado Sand Drive, the Regional Pond, Lift Station and Lonestar Boulevard.
On December 11, 2018, City Council approved the Second Amendment to the Project Plan and Finance Plan, which expanded the Zone boundaries to include approximately 67 acres of land to be developed as The Pecan District, located in the western portion of the City at the intersection of W. Pecan Street and S. Heatherwilde Boulevard. The second plan amendment also extended the life of the Zone for the expanded area to the Year 2058.
A feasibility study for the proposed Zone expansion was prepared for the City in January 2022. The key findings from the feasibility study include:
• The SH 45 corridor primarily consists of vacant/undeveloped land and currently lacks the necessary infrastructure to support development, including the proposed land uses identified in the City’s Comprehensive Plan.
• While infrastructure is available in the Downtown area, over time, it will continue to become outdated and inadequate to support new and/or desired types of development. Improvements are needed to enhance connectivity, accessibility, movement, and safety in the area. Additionally, streets and streetscapes are in need of enhancements making the area more walkable and viable as a Downtown destination.
• The eastern portion of the proposed Zone includes primarily undeveloped properties, currently with limited infrastructure and roadway connectivity to support new development.
• Increased growth pressures are expected to persist in the region as a result of overall market conditions in the Austin MSA.
• Pflugerville provides an attractive option to capture a portion of the region’s growth, including residential, industrial, commercial, and retail uses, due to its location, strong socioeconomics, access and availability of land. However, attracting future development within the Zone boundaries will be dependent on the availability of public infrastructure.
• A TIRZ would allow for the implementation of capital improvements in advance of the City being able to fund them through the use of developer reimbursement agreements.
• A TIRZ and developer reimbursement agreement allows for higher quality development that aligns with the community’s vision and may also allow for voluntary annexation of properties into the City.
• The extent and quality of development in the proposed Zone are dependent on the timing and implementation of public infrastructure and other projects, including water, sewer, drainage and roadway improvements.
• A financing tool like a TIRZ can facilitate and expedite new development and investment in both the Downtown/Pecan Street and SH 45 corridors.
Prior City Council Action
City Council approved the Downtown Action Plan by Resolution No. 1949-22-02-08-0963 on February 8, 2022, which identified including Downtown within a TIRZ as a project. Additionally, On February 8, 2022, City Council approved Resolution No. 1947-22-02-08-0961, supporting the creation of a TIRZ and the preparation of a project plan and financing plan. On October 11, 2022, City Council held a public hearing and adopted an ordinance on first reading approving the enlargement of the boundaries and the extension of the term for Reinvestment Zone Number 1.
Deadline for City Council Action
Action is requested on October 25, 2022.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Amount: _N/A
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A __ Required _X_ Date Completed: __9/28/22__
Supporting documents attached:
Ordinance
Exhibit A - Enlargement Area Description
Exhibit B - Enlargement Area Depiction
4th Amendment of the Project Plan and Financing Plan
Recommended Action
Approve an ordinance on second reading expanding the boundaries and the extension of the term of “Reinvestment Zone Number 1, City of Pflugerville, Texas.”