California-based furniture company Living Spaces will soon call Pflugerville home to its next distribution and retail center, its first in Texas.

“One of the things, since the day that I was elected that we have talked about, is that we need destination retail,” Pflugerville Mayor Jeff Coleman said. “And this is destination retail.”

The Deal

Living Spaces approached city officials about locating a 650,000-square-foot retail and distribution center in Pflugerville, Coleman said, because the city's transportation corridors can accommodate the needs of a busy distribution center.

The Living Spaces deal, also referred to as Project California, is one of largest economic development projects in Pflugerville’s history. The terms of the economic development agreement provides 50 percent of the sales tax to Living Spaces for a period of 10 years, or a total of $3 million, and Living Spaces will provide a $40 million investment in the retail and distribution facility.

Living Spaces also agreed there will not be another company distribution center within a 100-mile radius of the Pflugerville distribution center.

Facility Location

The massive facility, more than twice the size of IKEA in Round Rock, according to Pflugerville City Attorney George Hyde, will sit on a more than 60-acre lot located on the southwest corner of Heatherwilde Boulevard and SH 45 N, just north of Meister Lane in Pflugerville.

Living Spaces will consist of a 150,000-square-foot retail furniture showroom, with the remaining 500,000 square feet of the facility serving as a distribution center, shipping and distributing merchandise to customers who purchase merchandise online.

City Benefits

Coleman said the city will benefit from a sales tax standpoint, particularly from the center’s online sales, as Pflugerville will receive 100 percent of the sales tax from those transactions.

What is Next

Living Spaces is in the process of purchasing the land, and the transaction is expected to be completed within the next few months, according to a city official.

Once the land is purchased, construction will begin, and Living Spaces is expected to be up and running within 18 months of breaking ground.

Living Spaces was established in 2003 and has 14 retail locations in California, Nevada and Arizona.