Pflugerville City Council approved an economic development agreement Tuesday night that will allow development on the Costco store to move forward.

The agreement between the city, the Pflugerville Community Development Corporation and the Travis County ESD No. 2/Pflugerville Fire Department will provide a maximum of $6.25 million for infrastructure costs for the Costco.

According to the agreement, the PCDC will provide $1.5 million, the ESD will provide $1.5 million and the city will provide $3.25 million, which will come from sales tax proceeds. The agreement will expire after it reaches a total of $6.25 million or after 15 years, whichever comes first.

The agreement requires Costco to construct a 150,000-square-foot facility, make a capital investment of $15 million, comply with the Unified Development Code and obtain a Certificate of Occupancy. Costco must also construct a detention pond. If these requirements are not met, the incentive payments will cease.

The plan was proposed in June and now that it is approved, development on the Costco store can officially begin.