Title
Approving an economic development agreement between the City of Pflugerville and Lauren Concrete Inc., and authorizing the City Manager to execute the same.
Summary
In 2014, the City of Pflugerville and the Pflugerville Community Development Corporation (PCDC) provided incentives for Lauren Concrete to relocate their headquarters in Pflugerville. PCDC granted a one-time reimbursement of $300,000 for property acquisition, and the City granted Lauren Concrete 50% of the City’s 1% sales taxes for 10 years. Lauren Concrete has met the requirements and obligations outlined in the 2014 agreements and has requested a new sales tax abatement agreement for an additional 10-year period to maintain their headquarters in city limits.
It is proposed that sales tax abatement equal to half of the City’s annual sales tax revenue from Lauren Concrete be remitted in part by the City and by PCDC as set forth in their respective agreements. Lauren Concrete generates roughly $1M in annual sales tax revenue to the City and $500K to PCDC. Together, the agreements will reimburse approximately $500K to Lauren Concrete annually. In exchange, Lauren Concrete will maintain their headquarters and point of sale in the City of Pflugerville, retain a minimum of 12 full-time employees, add a minimum of 5 new employees, maintain a minimum average salary of $86,000, remain current on all ad valorem tax assessments, and generate $700,000 or more in sales tax annually.
This item is supported by the Economic and Business Development Pillar of the Strategic Plan.
Staff recommends approval of the Economic Development Agreement between the City of Pflugerville and Lauren Concrete Inc.
Prior City Council Action
City Council approved a Chapter 380 economic development agreement with Lauren Concrete on June 10, 2014.
Deadline for City Council Action
Action is requested August 26, 2025.
Funding Expected: Revenue __ Expenditure _X_ N/A __
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