Pflugerville Costco moves forward with approval of economic development agreement


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.

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  1. What an idiotic move by the Pflugerville city council. Putting a Costco in this spot will be a disaster of traffic and accidents. When the first law suit comes I will fully support it against Costco and the city.

    • This is a fantastic move for the city. Let’s face it–the longer ago you moved here, the more you’re going to complain about traffic and congestion. When I moved here 10 years ago, traffic was minimal. Now? The amount of traffic backed up at northbound 685 and Dessau during rush hour is unreal. In fact, now the traffic backed up at East Pecan and Immanuel is brutal too due to the people avoiding the other backup.

      And…my point?

      The people who are smothering my neighborhood with this traffic are the very people who moved here and bought near Kelly Lane, Hutto, etc. And now YOU’RE complaining about an economic boon to the whole city inconveniencing YOU? Give me a break. It’s always the last ones in that complain the loudest about the people behind them, isn’t it?

    • Costco doesn’t cause accidents anymore than the I35 or 183 or MoPac…idiots do!
      If you can’t drive in traffic, or congested areas, you shouldn’t be driving!
      This is progress in action, you don’t need to shop there, and there are side roads you can use to avoid this area.

  2. Pfreee At Last

    Do all large retailers in the Austin are receive incentives to set up shop or just every large retailer that builds in Pf? I find it hard to believe that a 2 million metro area customer base still requires greasing of pockets from the PCDC to convince a retailer that developing in this area would be profitable.

    I would love to know more about incentives being given out left and right anywhere else in Austin/Roundrock. I am not saying it’s not done, I am saying I am unaware of them and would like to know more, because the only ones I hear about are in Pf. I can understand incentives for a progressive community development with multiple retailers and living space, that truly benefits a city and provides a sustainable local economy that can be built upon over 20+ years, but a Costco? hmm…I really want to know more about this process used in Pf. How will placing this Costco in this area improve circulation through Pf and benefit small businesses owned by Pf residents? I am wondering why there aren’t more interesting and thorough stories written about these things in Pf. So much is left in question and residents are just expected to accept it and move on.

    • Tea Party Advocate

      The way it works is they rob you with an extra half cent sales tax every time you buy something in Pflugerville. PCDC collects the money, and spends it however they want, with virtually no meaningful accountability (aside from city council, which rubber stamps most of their wild ideas, which is the other part of the problem.) Most of the new business deals PCDC has tried to put together over the years ultimately never materialized, or failed to produce the results intended. (Remember how the politicians bragged that PCDC’s water park was supposed to make Pf a central Texas tourist destination?) PCDC’s answer to all this is, “if we don’t take your tax money, somebody else will”. I’m not kidding, that’s what one of their past bosses said right here in past CI comments. They’ve also spent a lot of your tax money in Vegas, supposedly advertising the city to new businesses. The concept of greasing the skids for new businesses may have made some sense back during the great recession, but nowadays the businesses in this town can’t find enough workers, and the new minimum starting wage for somebody who can’t even spell correctly on their job application is $10/hour. The spending of our tax money needs to be seriously reprioritized. Somebody in the local government needs to figure out how to build wider roads faster, because it takes me longer to drive out of the neighborhood in the morning than it does to finish my drive to downtown Austin. Some local public transportation would also be useful. We don’t even have sidewalks between Stone Hill shopping center and Walmart to walk or ride a bicycle! Driving a car is the only safe option. These growing pains are not unique to Pf; Hutto also has a community development corporation which has been in the news lately for their “imprudent” spending habits. Even Austin has been criticized for their lavish spending to attract new businesses, such as their recent bid for a major Amazon office. If you want a great job in government, you could do no better than applying for a job at your local community development corporation.

  3. I personally was in email conversation with city manager Brandon Wade over the summer and pointed out the traffic nightmare for those that live up Kelly Lane this Costco would bring.
    – He agreed that the empty land across at 130 south and 45 was a better option but claimed the city could do nothing to force Costco to purchase that land instead. (Maybe not but the city did not have to approve this project at its current location.)
    – I pointed out that Kelly Lane is the primary option for those that live in the neighborhoods along it. ( Some of the most expensive neighborhoods in Pflugerville I might add). Option 2 is Colorado Sand Dr. which takes you through a residential area. Bad idea.
    – A traffic survey was done over the summer which wouldn’t accurately reflect traffic patterns because school was not in session. You have an elementary, middle and high school right smack in the middle.
    – The intersection at 45 and 130 is already one of the most dangerous in the city as people are always attempting to “beat the light”. I imagine vehicle accident will go up as the wait to get through the area time increases significantly.
    Everybody has shopped at the Austin Costco. Night or day it’s always a traffic nightmare. All of those people that shop there that don’t live nearby will now be swarming to a Pflugerville store at an intersection that cannot handle it. Ultimately, people will be less likely to move to Pflugerville (expansion is almost entirely limited to West Pflugerville do to available space) and this Costco, and the traffic it brings, will not be a strong selling point. Those that do live in the effected area will be more inclined to move. Translation : a negative impact on property tax revenue long term.

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Kirby Killough
Kirby Killough joined Community Impact after working in broadcast news. She is currently the editor for the Round Rock, Pflugerville and Hutto edition of Community Impact.
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