Austin-based commercial real estate developer Live Oak will develop the project at the southeast corner of Heatherwilde Boulevard and SH 45, near the Living Spaces store that is currently under construction.
According to information released Thursday from PCDC, the first phase of the project will involve the construction of three single-story buildings totaling a minimum of 250,000 square feet. The next phase is expected to bring the total square footage to 350,000 square feet.
According to PCDC, an impact study commissioned by the development corporation determined that the net benefits to the city for this project could exceed $1.4 million in new tax revenue.
In exchange, the maximum possible incentive amount from PCDC to Live Oak is $250,000 to fund infrastructure. Those incentive funds will be fulfilled in two separate payments of $125,000 each, with the first payment coming no earlier than August 2022, according to a presentation at the Feb. 13 Pflugerville City Council meeting. The second payment of $125,000 is contingent upon Live Oak hitting certain goals, such as tenant occupancy.
"We are actively engaged in conversations with prospective tenants and brokers but have no confirmed leases at this time," Live Oak President Scott Flack said.
Pflugerville Interim City Manager Trey Fletcher told council members Feb. 13 that anticipated uses for the building include light industrial and light manufacturing, though zoning for the space allows for a number of uses.
Pflugerville City Council approved a performance agreement between PCDC and Live Oak at its regular meeting Feb. 13. The agreement requires construction on the first phase of the project to begin by Sept. 30 and the shell buildings to be complete by Dec. 31, 2019.
“Our recent successes in recruiting companies to Pflugerville has left us with a limited stock of options for office and industrial flex space that is sorely needed to continue our economic development momentum. Keeping up with the demand is a priority for our board and is central to our comprehensive economic development plan,” said PCDC Executive Director Amy Madison in a statement. “With this project, we provide new inventory for recruitment of companies while also forming a great partnership with a reputable full-service commercial real estate company.”