Modified on Nov. 2, 2012 at 2:10 CST.

Austin-based coffee and creamer manufacturer EIEIO Inc. plans to relocate to Pflugerville in 2013, a result of a deal struck between the company and the Pflugerville Community Development Corp.

EIEIO plans to build a 40,000-square-foot facility for its corporate headquarters and manufacturing plant on 5 acres along Toll 130, which was purchased from the PCDC. The parcel of land is situated in the 130 Commerce Center in Pflugerville, a 160-acre master-planned commercial development parcel owned by the PCDC, which revealed details of the deal Oct. 24.

EIEIO President Cecil Andrews said he plans to invest more than $3.5 million to construct a new building. EIEIO currently operates out of 16,000-square-foot facility at 1615 Rutherford Lane in Austin, where rising production demands warranted the need for expansion, Andrews said.

Andrews said need the expand also afforded the company an opportunity to relocate outside of Austin. After 12 years of being in Austin, Andrews said he wanted to relocate to a more business-friendly city, citing challenges with city permits, zoning and compliance.

"[Austin] is not like Pflugerville," Andrews said. "They're not hungry for companies like ours to come in."

On Oct. 18, the PCDC board of directors approved an incentive agreement with EIEIO, which includes reimbursements to the company for certain development-related expenses for no more than $243,500, including fees to extend sewer lines. Pflugerville City Council approved the incentive package Oct. 23. According to a statement from the PCDC released after the proposal was approved, the City of Pflugerville will also receive approximately $26,500 in real and personal property taxes generated by the facility.

Andrews said access to Toll 130 and the relative lack of traffic congestion on the roadway was also a major deciding factor, as was the site's close proximity to Austin Executive Airport.

Andrews said employees currently working at the company's Austin headquarters would be relocated to Pflugerville when the new facility is completed. He said he expects to hire an additional 20 full-time employees at an average annual salary of $46,000 plus medical benefits.

Andrews said he expects to be moved in to the new facility by May or June. While the building is being constructed, the company will continue to operate out of its Austin facility.

EIEIO was founded in 2000 in Austin and has 20 full-time employees and 15 contractors. The company develops, manufactures and distributes gourmet coffee, creamer and dispensing systems to convenience stores and food retailers throughout the nation.