El Lago may never relocate its tortilla chip factory to Pflugerville.

The chipmaker was expected to move into a new location at the 130 Commerce Center by mid-August, but El Lago has yet to arrive in Pflugerville, an official said.

El Lago's move to the rapidly developing Plfugerville business center at the southwest corner of SH 130 and Pecan Street was announced in mid-May. At that time, Pflugerville City Council approved an incentive agreement between the Pflugerville Community Development Corp. and El Lago worth up to $60,000. The incentives are contingent on meeting hiring and payroll standards, among other benchmarks.

But communication between El Lago and the PCDC recently stopped, said Amy Madison, PCDC assistant executive director. El Lago is the largest tortilla and chip distributor in the state, according to PCDC.

"We have not heard direct from [El Lago], but the developer has indicated that there are some issues with the relocation," Madison said. "But again, that is between the developer and the owner of the company, and we have yet to hear anything, any clear communication, from the owner of the [El Lago]."

A representative of El Lago and the developer at 130 Commerce Center could not be reached immediately for comment.

The PCDC's incentive agreement with El Lago is contingent on the company bringing at least 40 jobs to Pflugerville. The PCDC would, in turn, give EL Lago $1,500 for each of its full-time employee earning an average yearly salary of $30,000 and medical benefits, according to the agreement.

Before receiving any incentive, El Lago must relocate, Madison said. The company must also take possession of the building and prove the number of employees and their salaries through the first quarter payroll, she added.

"We are way down the road from paying any incentive out," Madison said.