Depictions of the development, which is called Sunshine Village and SunTech Office Park at Pflugerville Crossing, show a development that could become a hub for the city of Pflugerville.
An economic impact analysis estimates the project could net the city more than $572 million in tax revenue over 10 years. The development would be divided in two pieces situated north of the intersection of Pflugerville Parkway and SH 130, just south of the Hawaiian Falls Water and Adventure Park.
Floyd Akers, executive director of the Pflugerville Community Development Corp., said it is not an overstatement to say Sunshine Village could be one of the biggest development projects in the city's history.
"This is a major project," Akers said. "The scope of this project is dramatic."
Star Stream Capital, the development firm behind the proposed mixed-use urban project, is in the process of closing on the purchase of the two plots of land, which are divided by SH 130. The firm is also working with the city on permits, said Scott Mann, a managing director with the company.
When fully built out the development could have up to $1 billion worth of capital infrastructure. Pflugerville currently has a property tax base of about $2.8 billion, Akers said.
Pflugerville Mayor Jeff Coleman, City Council members, and the city manager would not comment on a potential development near the water park beyond a statement issued by Public Information Officer Terri Waggoner.
"The city has been in discussions with the developer on possible economic incentives," the statement said. "Since we are in preliminary discussions about the development, it remains confidential at this time."
According to an economic impact analysis of the project provided by Akers, "Pflugerville will rebate 50 percent of the city's portion of sales taxes, property taxes and personal property taxes."
The incentives could be worth $75 million, the analysis projects.
Wiler & Associates Real Estate Services is partnering with Star Stream Capital and is serving as a broker on the property, said Holland Wiler, president of the firm.
"We are going to try to close by mid-September," Wiler said, regarding the 120-acre purchase.
An 82-acre portion of the development called Sunshine Village would sit on the west side of SH 130 between Hawaiian Falls and Pflugerville Parkway. A 38-acre parcel called SunTech Office Park would sit on the eastern side of the toll road south of Hendrickson High School, Mann said. Renderings suggest the two developments would be connected by a pedestrian walkway over SH 130.
Mann said the plan is to break ground on road and utility infrastructure for the site in the last quarter of 2014. That construction should take four months to complete assuming no delays. The first phase of vertical building—which would include offices and retail buildings—could be completed by the first quarter of 2016.
Although Pflugerville officials would not comment on Sunshine Village, the PCDC held a public hearing on a "Project Sunshine" on July 31. The PCDC often creates code names for development projects that may receive incentives that have not been finalized.
Recent projects code-named by the PCDC have included "Project Blade," which was a wind turbine blade technology firm, and "Project Morpheus," which turned out to be Courtyard Marriott.
While discussing "Project Sunshine" to the PCDC board, Akers mentioned a possible incentive agreement to prelease 50 percent of a 150,000-square-foot, Class A office space that could be built at the corner of Pflugerville Parkway and SH 130. That location would be the same area Star Stream Capital has outlined as the site for Sunshine Village.
At the July PCDC meeting, Akers' description of a six-story glass-and-steel office building matches illustrations in Star Stream Capital's renderings of Sunshine Village.
"At Pflugerville Parkway and [SH] 130, I think in the next five to 10 years you will see 1 million square feet of Class A office space," Akers said at the July 31 meeting. "If we can accomplish that, Pflugerville will not be the same place it is today 10 years from now. The average wages will be much higher, property taxes will be much lower and sales tax will be through the roof."
Pushing east
Mann said three major factors make Pflugerville's eastern side ripe for development.
He cited, for one, city officials' willingness to embrace Pflugerville's future growth. Second, the SH 130 corridor provides easy access to the Austin area. Third, the Greater Austin area is expected to double in population, from 2 million people up to about 4 million, within approximately 20 years, Mann said.
"You really can't help but draw the conclusion that a large percentage of that growth is going to occur in the Pflugerville-Elgin corridor," Mann said. "The leadership there has shown enormous foresight in extending the jurisdiction of the city."
The city's actions also show it expects more strong growth on the eastern side of town.
The PCDC and City Council have crafted incentive deals in the past year to help develop 130 Commerce Center, a business park at the intersection of SH 130 and Pecan Street.
So far the deals have landed a future FedEx distribution center, Courtyard Marriott, Best Western Plus and Class A office buildings, among other businesses, at 130 Commerce Center.
Pflugerville officials have also worked to shore up roads on the eastern side of town. A City-Council approved road bond worth $25 million will go before voters Nov. 4. The bond proposal would fund improvements to East Pflugerville roads including Weiss Lane, Rowe Lane, Pecan Street and Pflugerville Parkway.
In addition Pflugerville voters on May 10 passed a $287 million Pflugerville ISD bond package that allots more than $188 million for a new high school that will be located east of SH 130. Pflugerville ISD is growing by about 400 students per year, according to district numbers.
A vision of Sunshine Village
The potential development would have restaurants, multi-story office buildings, hotels, retail shops, ponds, park space and a town hall.
The development group is planning four hotels and negotiating contracts with two major hotel developers, Mann said.
Both the east and west sides of the development would have 10 to 12 restaurant sites available, according to site plans . The city of Pflugerville could lease parts of the town hall, and other businesses could lease space as well, Wiler said.
Sunshine Village could also have entertainment and bottom-floor retail space.
Wiler said he is already working on selling restaurant sites but did not mention specific businesses.
The development's largest features appear to be the office buildings, which are up to six-stories high.
"If we are going to turn Pflugerville ... into a high wage earning community, these are the types of facilities we need," Akers said July 31.
