The background
City Council established tax increment reimbursement zone one in 2010 to attract development to about 399 acres in east Pflugerville. The zone now also encompasses 67 acres in the west side of the city, as well as downtown Pflugerville. Developers can apply to use TIRZ funding—set aside from taxes earned from new improvements—to help build out infrastructure.
TIRZ guidelines stipulate that the zone should promote and encourage sales tax generating businesses, along with high quality mixed-use, commercial and Class A office developments.
What happened
Verdot Capital applied for $4.3 million in TIRZ funding for a residential and mixed-use development located along SH 130, north of East Pflugerville Parkway and south of Copper Mine Drive. In its application for the North Pointe East Development, the developer included plans for a pickleball facility, assisted senior living, multifamily housing, undefined retail, a public green space, connectivity for roads and a waterline extension.
The application went to council Jan. 14, when city staff recommended denial on behalf of the city and TIRZ board, due to the project not "exceeding minimum development requirements." Assistant City Manager Emily Barron said the planned unit development is intended to create more employment opportunities rather than majority residential areas.
"We don't question the quality of the development—it's just whether or not we should incentivize residential developments in this way," Barron said.
What else?
The application failed 5-2. Place 4 Council Member Rudy Metayer and Place 6 Council Member David Rogers voted in favor of using TIRZ funds for the development.
Based on feedback from city staff and City Council, Verdot Capital could resubmit an application with an updated plan for the development in the future.
"I don't want to say start over, but I think there may still be an opportunity in there somewhere," Mayor Victor Gonzales said.
