The Pflugerville Community Development Corp. board of directors Nov. 15 approved a proposed amendment to its contract with Typhoon Texas to release the PCDC from repaying $4.5 million in improvements to the water park.
According to PCDC Executive Director Amy Madison, the revised agreement requires Typhoon Texas to make additional capital improvements before the 2019 season and to develop a year-round restaurant to open in 2020.
"Our action tonight is the first step in reaching an agreement that encourages Typhoon Texas' future investment in the water park," Madison said at the Nov. 15 meeting.
In exchange PCDC will pay for traffic and pedestrian access improvements at FM 685 and Town Center Drive to accommodate the efforts to build the restaurant. Construction on the road improvements is expected to begin after Sept. 3, 2019, with completion by April 30, 2020.
In PCDC's original contract with Typhoon Texas, PCDC was required to build a $4.5 million reserve for a possible repayment to the water park. PCDC has already set aside $1.8 million in the reserve with another $900,000 in this year's budget. The amendment would free that $2.7 million.
“The amended contract removes financial obligation by the PCDC and frees up $2.7 million for other economic development projects,” PCDC board of directors President Ken D'Alfonso said in a statement. “It is with great confidence that we work with Typhoon Texas on improvements to the park to ensure continued future growth and long-term success.”
The amendment also would release PCDC from providing a $25,000 annual marketing grant through 2021, according to PCDC. The new contract will require Typhoon Texas to renovate a portion of its main building and provide PCDC with a 2018 lease payment of $650,000 and invest $500,000 for capital improvements by May 1, 2019.
"It was a joint agreement that provides for future expansion. They were willing to release us from our obligation if we were willing to fund investment in the park," Madison told Community Impact Newspaper. "It made more sense to partner with us now for future expansion... We mutually agreed on that."
Typhoon Texas would also have the ability to use the property as collateral in a loan to fund a new attraction, according to the proposed contract.
Pflugerville City Council will consider the amendment and vote for final approval at its Nov. 27 meeting.