Pflugerville is set to build its first hotel after city council approved development incentives at its Feb. 25 city council meeting.

The Best Western Plus will be built in the 130 Commerce Center at the corner of Pecan Street and SH 130, near Northeast Metropolitan Park. Construction of the building is set to take 6–8 months after the hotel's developer receives approval for its site plan and permits. When completed, the hotel will feature 70 rooms and employ at least five full-time and 10 part-time employees.

The Pflugerville Community Development Corp. offered developers a discounted price of $2.50 per square foot to purchase the land at the center, and agreed to reimburse up to $100,000 for city development fees and dedicate $25,000 annually to market the hotel. The city of Pflugerville will also rebate 50 percent of the hotel's first year of property tax.

"Pflugerville is really a new growth area," said Dilip Naik, co-owner and developer of the new hotel. "We worked with the PCDC and were impressed with the support the city gave to the project."

The city expects to bring in approximately $28,500 in property taxes from the hotel annually, and will also receive a hotel occupancy tax equal to 7 percent of each room's night stay.

The Best Western Plus will also be an attractive amenity for businesses and residents bringing in out of town guests, participants in tournaments held at the park and visitors to the nearby Hawaiian Falls water park, PCDC Executive Director Floyd Akers said.

"A hotel has been something the city council has wanted since I've been here," he said. "Now we'll actually have a place to refer people to stay when they come to Pflugerville."