PFLUGERVILLE, Texas (KXAN) — The Pflugerville City Council on Tuesday moved forward with a $148.9 million plan to develop a 29-acre plot of land at the northwest corner of East Pecan Street and Farm to Market Road 685/Dessau Road.

The public-private partnership will develop what the city calls “Downtown East.”

Proposed Downtown East location. (Source: City of Pflugerville)
Proposed Downtown East location. (Source: City of Pflugerville)

The city said it will fund the project with Certificates of Obligation (CO), the Pflugerville Community Development Corporation (PCDC), a Tax Increment Reinvestment Zone (TIRZ) and other project revenues to reduce the burden on taxpayers.

According to a city statement, taxpayers will fund up to $71.8 million of the project via tax-supported debt. That is 48.22% of the estimated cost of the project.

The city said Pflugerville residents will pay up to $3.38 per $100,000 value on their monthly property tax bill.

The city estimated Downtown East will generate $33 million in revenue from property taxes, sales taxes and hotel occupancy taxes over the next 20 years.

During an April meeting, the city released results from a survey that got 376 responses. People want to see dining, shopping and entertainment options at Downtown East, according to the results.

The survey results showed some neighbors did have reservations about potentially expanding the existing downtown to the Downtown East property. However, the city said, the surveys show the majority of neighbors are in favor of creating the connection.

The city said additional feedback was collected in person and online in April and June, as well as over the past few years.

City leaders have said the new development would be home to a new City Hall and could potentially include additional city buildings and a recreation center.